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The global ambient lighting market size was valued at $60.8 billion in 2019 and is projected to witness a CAGR of 9.2% during the forecast period (2020–2030). The growing demand for energy-efficient lighting solutions, toughening regulatory policies with respect to energy efficiency, and the rising focus on smart lighting solutions are the major factors driving the ambient lighting industry.
The COVID-19 pandemic has also impacted the growth of the ambient lighting market across the world, as it has resulted in the disruption in the supply chain of electronic components and delay in residential project launches in several countries, including China and India.
In the ambient lighting market, the software and service category, on the basis of offering, is expected to witness faster growth, exhibiting a CAGR of 10.4% during the forecast period. This can be attributed to the increasing demand for software for controlling lighting in various settings, as per the ambience required by the user. Lighting control software offers advanced functionality, including the adjustment of brightness and color.
The recessed lights category held the largest ambient lighting market share in 2019. Recessed lighting can be used for a wide range of settings, including residential and commercial. It also enhances the quality of lighting and offers better feel and look to the given space. Due to these factors, there is a high demand for recessed lights for applications in these sectors.
In the ambient lighting market, the automotive industry, among the end users, is expected to witness the fastest growth during the forecast period. Due to the increasing production of vehicles and the rising adoption of interior lighting solutions in vehicles, the demand for ambient lighting is expected to be increase substantially in this industry. For instance, the worldwide automobile production increased from 95 million vehicles in 2016 to 97 million in 2018. Thus, with the rising production of automobiles, the demand for ambient interior lighting from automakers is expected to increase in the near future.
The major factors driving the growth of the ambient lighting industry in APAC are the increasing construction of residential buildings, primarily in India and China, and the growing automotive industry in the region. Due to various government initiatives for the development of housing projects in the region, the demand for ambient lighting for residential buildings is increasing. Moreover, China, Japan, and South Korea are the major hubs for automakers in the region. Thus, with the increasing production of vehicles in the region, the demand for ambient lighting from the automotive industry is expected to hold a considerable share in the market.
Besides, due to the large population and increasing disposable income, the demand for ambient lighting for several construction projects is increasing in the region, primarily in China. For instance, in 2019, the housing construction area of real estate development enterprises witnessed an increase of 8.7% from 2018 in the country. With the increasing construction of residential spaces, the demand for ambient light continues to remain high in the country.
The growing IT industry in the region, mainly in India and ASEAN countries such as Malaysia and Singapore, is driving the demand for lighting in the corporate sector. Moreover, the corporate sector in Indian cities, such as Mumbai, Delhi, and Bengaluru, is growing fast. With the rise in the number of corporate establishments, the demand for ambient lights from this sector is expected to increase during the forecast period in the ambient lighting market.
A key trend observed in the ambient lighting market is the growing demand for LED lighting. An LED light uses up to 50% less energy to produce an equivalent intensity of light generated by cold cathode fluorescent lamps (CCFLs) and compact fluorescent lamps (CFLs). This reduced energy consumption can directly reduce annual carbon dioxide emissions by around 700 million metric tons, thereby lowering greenhouse emissions. LEDs do not emit ultraviolet radiation and are neutral in nature, which make them more suitable for indoor lighting. Due to these factors, LEDs are expected to completely replace CFLs and CCFLs in the ambient lighting market coming years.
The growing focus on energy efficiency is a major factor driving the ambient lighting market growth, globally. Stringent regulatory policies with respect to the efficiency of lights are offering tremendous potential for energy and cost savings in different sectors. In view of this, the demand for energy-efficient lighting solutions is increasing across the world. For instance according to U.S. Department of Energy, U.S. Energy Standard for Buildings is a national model code for commercial buildings and is an important parameter for building design and related systems.
Additionally, model energy codes for residential and commercial buildings are expected to save $126 billion in electricity costs and reduce around 841 million metric tonnes (MMT) of carbon dioxideemissions. Developing country China has emerged as one of the largest energy consumers in the world, accounting for around 14% of the global power consumption, with lighting as the key area of focus. In view of this, the country, in 2017, made specific commitments through its Development Plan for LED Lighting Industry to advance energy savingswith LED lighting installation for sustainable growth.
|Base Year (2019) Market Size||$60.8 billion|
|Forecast Period (2020-2030) CAGR||9.2%|
|Report Coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Company Share Analysis, Companies’ Strategic Developments, Product Benchmarking, Company Profiling|
|Market Size by Segments||Offering, Type, End User, Geography|
|Market Size of Geographies||U.S., Canada, Germany, France, Italy, U.K., Spain, Russia, Netherlands, Japan, China, India, South Korea, Indonesia, Thailand, Malaysia, Brazil, Mexico, Argentina, Colombia, Saudi Arabia, South Africa, U.A.E., Turkey, Egypt, Nigeria, Qatar|
|Secondary Sources and References (Partial List)||American Lighting Association, Energy Efficient Lighting Association (EELA), Global Lighting Association, Institute of Electrical and Electronics Engineers, Lighting Controls Association, World Bank, Electric Lamp and Component Manufacturers Association of India International Journal of Sustainable Lighting, Middle East Lighting Association|
The growing demand for smart lighting solutions is another factor driving the growth of the ambient lighting market. Energy efficiency and design structure have led to the adoption of LEDs in the industrial sector. Moreover, in the residential sector, mass-scale LED adoption has expanded the scope of advanced designs and efficiency.
Additionally, the rise of Industry 4.0 and the internet of things (IoT) and the need for smart home solutions have encouraged players to experiment more with LED lights. As connected domestic devices and energy conservation have become the major drivers of lifestyle, lighting manufacturers arefast introducing solutions that leverage latest technologies to enhance performance, aesthetics, and functionality, giving way to smart lighting systems.
In recent years, players in the ambient lighting industry have launched several advanced products to stay ahead of their competitors. For instance:
The ambient lighting market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Offering
Based on Type
Based on End User