The global LED lighting market was valued at USD 68,954.7 million in 2022, and this number is expected to reach USD 152,842.0 million by 2030, advancing at a CAGR of 10.5% during 2022–2030, as per P&S Intelligence.
The increasing need for
energy-effective solutions along with the development in infrastructure, the
snowballing government initiatives regarding the acceptance of LED lights, and
the mounting sales of horticulture lighting are major reasons driving the sales
of such lights.
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| LED Lighting Industry Revenue Estimation Forecast to 2030 |
The declining cost of lights
is an additional key reason for the market growth. The reduced cost has led to
their advanced usage for numerous applications, such as industrial,
residential, and commercial lighting. Because of the enhancements in
technologies, the cost of production is significantly reduced while the effectiveness
and lifespan of LED lights have enhanced remarkably in the past few years.
Because of this, there has been a notable drop in the cost of lights.
In 2022, the luminaire
category held the highest revenue in the market of above USD 40 billion. This is
credited to the extensive demand for luminaires, mainly from newly built
commercial and residential buildings. Additionally, with increasing government
initiatives regarding their adoption, the manufacturing of such luminaires is
estimated to surge in the future. These lights are installed on tunnels, high
bays, troffers, tracks, streets, and others.
The retrofit installation
category is projected to experience higher growth, advancing at a rate of 10%,
in the coming years. This can be ascribed to the increasing replacement of
sodium-vapor lamps and incandescent bulbs with LEDs in several countries,
including India, South Korea, China, South Korea, and the U.S. Furthermore,
with the phasing out of incandescent bulbs in such countries, the demand for
lamps for retrofit deployment is growing, which enhanced the sales in this
category.
APAC is leading the LED
lighting market, accounting for the largest revenue share, of
approximately 50%, in 2022. This is credited to the snowballing demand for LEDs
from the housing sector, principally in countries like India, South Korea, and
China, due to increasing per capita income, the presence of a large number of
businesses functioning in such countries, and the development in the
construction of residential establishments.
Furthermore, because of the
growing population, promising infrastructure growth activities in emerging
economies, and increasing government initiatives with a concentration on energy
effectiveness, the demand for industrial and commercial applications is rising,
hence driving the manufacturing of LEDs in the region.
Hence, the increasing need
for energy-effective solutions along with the development in infrastructure,
the snowballing government initiatives regarding the acceptance of LED lights,
and the mounting sales of horticulture lighting are major factors that will
drive the LED lighting market in the future.
