The global light-emitting diode (LED) lighting market is expected to reach $70,240.0 million by 2023, with a CAGR of 12.6% during the forecast period (2017–2023). Major factors supporting the market growth include falling prices of LED lighting solutions, infrastructure developments, and shift from conventional lighting, such as compact fluorescent lamp (CFL) and traditional bulb, to LEDs.
Insights into market segments
Based on product type, the LED lighting market is classified into luminaire and lamp. Of these, the luminaire category contributed larger revenue to the market in 2016. Focus on real estate and urbanization, along with high penetration of LEDs as an energy-efficient light sources are some of the key factors propelling the demand for luminaires, globally. Furthermore, recovery in the construction industry, continuous development in residential, commercial, and industrial lighting systems, and favorable government polices across the globe are the key factors driving the growth of the luminaire market during the forecast period.
On the basis of installation type, the LED lighting market is categorized into new installation and retrofit. Of these, the installation category held larger revenue share, of 83%, in the market in 2016, and is expected to witness significant growth during the forecast period. This is attributed to the surging demand for energy-efficient lighting sources, declining manufacturing cost of LEDs, and improvement in electrification in rural areas, across the globe.
Rising trend of non-visible LED applications
A key trend observed in the LED lighting market is the increasing penetration of non-visible LED applications. For instance, manufacturers are turning their focus on LED applications in non-visible light spectrum, such as ultraviolet (UV) or infrared (IR), to increase their profitability. Revenue generated from non-visible LED applications is too small as compared to white light LED applications. Technological barriers of non-visible LEDs lead to the customization of demands, and need to work closely with LED manufacturers. Therefore, the need for customization of non-visible LED products has result in better gross margins than white LEDs. This is expected to boost the market growth.
Increasing applications of LEDs in modern infrastructure
High demand for LED lights is being driven by the modernization and development of infrastructure. Governments of various countries, especially of developing countries such as India, China, and Indonesia, are focusing toward modernization and development of infrastructure. For example, the Government of India announced to transform 100 cities, across the country, into smart cities by 2030, and aimed to invest around $15 billion on smart city projects. The Government of Dubai (U.A.E.) announced smart city strategy, which includes over 100 initiatives and a plan to transform 1,000 government services into smart services. These developments certainly offer new opportunities to LED lighting vendors to develop and commercialize smart LED lighting products, which enable them to increase their market shares. Most of the smart lighting products are remotely controlled and have color tuning features. Owing to these, the demand for LED lights is increasing across the globe.
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LED Lighting Market Competitive Landscape
The global LED lighting market is highly competitive in nature, primarily due to the presence of a large number of original equipment manufacturers (OEMs) in emerging economies, such as China, India, Indonesia, and Brazil. Some of the key companies operating in the market include Philips Lighting Holding B.V., General Electric, OSRAM Licht AG, Cree Inc., Eaton Corporation PLC, Virtual Extension, Dialight PLC, Zumtobel Group AG, Samsung Group, and Syska LED.
LED Lighting Market Segmentation
By Product Type
By Installation Type
By Application
By Region
