The growing adoption of energy-efficient lighting solutions, reducing prices of LED lights, and rising infrastructure development spending are the major factors driving the growth of the global LED lighting market globally. As a result of these factors, the industry is projected to generate $152,442.3 million by 2030, advancing at a CAGR of 10.7% during the forecast period (2020–2030).
The COVID-19 pandemic disrupted the LED lighting market growth globally. Major players, including Acuity Brands Inc. and Signify N.V., incurred revenue losses due to a decline in product demand, obstruction in marketing and distribution, and delay in the completion of construction projects. Further, the disruption in the supply chain, particularly with respect to electronic components, such as drivers and chips, which are imported from China, has affected the LED lighting market. Moreover, the governments of various countries have imposed restrictions on intercity and interstate travel, which adversely affected the hospitality and travel industries, thereby resulting in a low demand for lights.
The LED lighting market is categorized into luminaire and lamp, on the basis of product type. Of these, luminaires accounted for the larger market share in 2020 owing to their growing use in commercial and industrial spaces and increasing government initiatives. LED luminaires provide more light per unit output power. Moreover, they are easier to control, and they enable optic designers to use them more proficiently and use less light to illuminate the same area.
Furthermore, the LED lighting market is categorized into new and retrofit, on the basis of installation type. Out of these, the retrofit category is expected to witness the higher growth rate during the forecast period due to the escalating replacement of incandescent and sodium-vapor lamps with LEDs in various countries, such as the U.S., the U.A.E., Japan, India, China, and South Korea.
Geographically, Asia-Pacific (APAC) accounted for the largest share in the LED lighting market in 2020 due to the increasing government initiatives in India, China, and South Korea for the adoption of energy-efficient lights. This is mainly being supported by the growing focus on the replacement of conventional lights, such as incandescent, compact fluorescent lamps (CFL), and sodium-vapor lamps, with LEDs in residential, commercial, and industrial settings. Moreover, the increasing urbanization rate and rising focus on infrastructure development are resulting in the high penetration of LEDs as an energy-efficient lighting source in the APAC region.
The global LED lighting market is highly competitive in nature with the presence of several major players who are engaged in product launches to strengthen their business. For instance, in August 2020, Signify N.V. launched the latest version of its multi-protocol WiZ smart lighting system in Europe. WiZ includes a wide variety of low-cost smart lights and accessories that are simple to connect via Bluetooth and Wi-Fi. The inclusion of the WiZ technology fits well with Signify's intent to offer easy-to-use smart lighting solutions.
Similarly, in June 2020, Signify N.V. announced the launch of new and updated Philips Hue products to enhance its portfolio. The new range of products includes the Philips Hue White A21 bulb, LED spot-ceiling lights, Philips Hue Lightstrip Plus, Philips Hue Bloom table lamps, and Philips Hue White Ambiance indoor light fixtures.
Some of the major players operating in the LED lighting market are Signify N.V., Acuity Brands Inc., Zumtobel Group AG, General Electric Company, OSRAM Licht AG, Samsung Electronics Co. Ltd., and Hubbell Incorporated.