The LED lighting market was valued at USD 68,954.7 million in 2022, and it is projected to propel at a rate of 10.5%, to reach USD 152,842 million by 2030 as stated by a report by P&S Intelligence.
The increasing number of initiatives by the government toward the adoption of LED lights, mounting sales of horticulture lighting, and the growing demand for energy-efficient solutions are driving the industry's growth.
One of the key trends observed in the industry is the increasing popularity of smart solutions, mainly in China and Japan, due to their ability to control lighting anytime, from anywhere using smartphones, and their high energy efficiency.
Another main factor for the growth of the LED lighting market is the decreasing prices of these lights. Due to technological advancements, the cost of production has reduced significantly while the efficiency and lifespan have improved remarkably in recent years.
The highest revenue was generated by the luminaire category, with more than USD 40 billion in 2022. This is credited to the growing demand for luminaires, mostly from newly built commercial and residential buildings.
The fastest growth is projected in the retrofit installation category, propelling at a rate of more than 10%, during 2023–2030. This is because of the growing replacement of incandescent lamps and sodium-vapor lamps with LEDs in India, South Korea, Japan, China, the U.S., and the U.A.E.
With approximately 60% share, outdoor lighting dominated the industry in 2022. This has a lot to do with the development of motorways, public spaces, and airports.
Additionally, it is expected that the production of outdoor lighting will be driven by the increasing government initiatives to achieve net-zero emissions by reducing energy use.
Moreover, the demand for street lighting will witness a significant growth rate in the long run. This is mainly because of the growing focus on developing smart cities, with the use of streetlights that would help in reducing maintenance costs, saving energy, limiting carbon emissions, and controlling light intensity.
The demand for Light-emitting diode drivers and solutions has significantly increased in Indonesia, India, and China in recent years, due to the government's focus on infrastructure development.
APAC is the largest user for LEDs, with approximately 50% share in 2022. This is mainly because of the growing demand for these from the residential sector, mainly in South Korea, India, and China. The demand is on the rise due to the rising disposable income, and housing infra growth.
Also, the North American industry is expected to witness moderate growth in the long run, because of government support and initiatives toward energy efficiency.
Due to the rising demand for energy-efficient solutions, decreasing prices of LEDs, and favorable government initiatives, the LED lighting industry will grow significantly in the coming years.
