The growing adoption of energy-efficient lighting solutions and declining LED prices are some of the prime factors propelling the growth of the LED lighting market. As a result, the industry is expected to generate $262.8 billion in revenue by 2030, advancing at a CAGR of 12.9% during the forecast period (2020–2030).
The COVID-19 pandemic that started in late 2019 has severely impacted the overall LED lighting market across the globe. It has led to negative growth in the gross domestic product (GDP) worldwide, hitting advanced economies the hardest. New and ongoing residential projects have been delayed in several countries, such as China and India, due to the stringent lockdown measures implemented by governments. Moreover, restrictions on inter-city and inter-state travel have affected the tourism and hospitality industry worldwide, a major end-user of LED lighting products.
Luminaires To Hold Larger Market Share during Forecast Period
The LED lighting industry, based on product type, is segmented into luminaires and lamps. Among the two, the luminaires bifurcation held larger market share in 2019, by revenue, and it is expected to lead the industry over the forecast period. This can be attributed to the new construction projects in commercial and residential sectors, along with the increasing government focus on the adoption of LED lighting, in countries such as China, India, and the U.A.E.
The LED lighting market, in terms of application, is bifurcated into the indoor and outdoor. Of these, the indoor bifurcation is expected to hold larger revenue share during the forecast period. The increasing demand for LED lighting for residential applications, in countries such China, India, the U.S., and the U.A.E., owing to the boom in the construction of affordable housing and rising focus on smart city projects across the Asia-Pacific (APAC) and European regions, is one of the major factors driving the bifurcation.
Geographically, the APAC region held the largest share in 2019 in the LED lighting market, and it is expected to maintain its dominance over the forecast period. This rapid growth is mainly due to the increasing demand from the residential sector, in China, India, and South Korea. Additionally, a surge in the urbanization rate and disposable income of the population is leading to the adoption of energy-efficient lighting solutions, which, in turn, is driving the market for LED lighting.
Mergers and Acquisitions Are Strongest Strategic Measures Being Taken to Drive Success in Industry
Players in the LED lighting market are focusing heavily on mergers and acquisitions to enhance their industry presence. For instance, in March 2020, Signify N.V. acquired Cooper Lighting Solutions from Eaton Corporation plc, for $1.4 billion in cash. With this acquisition, the company aims to strengthen its position in the North American lighting market. Signify is projected to generate over 50% of its sales in the professional segment, thereby increasing the revenue base from $5.5 billion to $7.2 billion, while the proportion of the revenue generated in the Americas rose to 40% in 2019 from 28% in 2018.
Similarly, in September 2019, Acuity Brands Inc. announced the acquisition of The Luminaires Group (TLG), a provider of luminaires for institutional, commercial, hospitality, and municipal customers, under its Cyclone, Luminaire LED, Luminis, and a-light brands. The acquisition not only enhances the former company’s existing lighting portfolio, but also expands its customer base.
Browse report overview with detailed TOC on "LED Lighting Market Research Report: By Product Type (Luminaire, Lamp), Installation Type (New, Retrofit), Application (Indoor, Outdoor) - Global Industry Analysis and Growth Forecast to 2030" at:https://www.psmarketresearch.com/market-analysis/led-lighting-market
Some of the major players operating in the global LED lighting market are Signify N.V., General Electric Company, OSRAM Licht AG, Hubbell Incorporated, Cree Inc., Samsung Electronics Co. Ltd., Acuity Brands Inc., Syska LED Lights Private Limited, Wipro Enterprises (P) Ltd., and Zumtobel Group AG.
