Market Research Future (MRFR), after extensive study, sates that the global LED lighting market is expected to reach the value of USD 105 billion by 2023. The market is set to register 14% of CAGR during the forecast period (2017-2023).
LED lamps are energy efficient and possess a long lifetime. They are rugged as they consist of a solid material and do not contain any filament that is fragile. LED lamps require no warm-up period and light instantly in nanoseconds. They are also environmentally friendly as they consume less energy and do not contain mercury or any hazardous substances.
Growth Drivers and Restraints
The primary drivers of LED lighting market are strong government support, focus on LED standardization, thriving real estate sector, organized retail market, rural electrification enhancement, and growing population, to name a few.
LED lightings are ideal in situations where lamps are required to be switched on and off frequently and can be easily dimmed. As LED lamps do not wash out colors such as fluorescent lamps, they are ideal for displays and retail applications as well. Hence, on account of these desirable properties, the market is set to tread on a highly successful path in coming years.
At present, fluorescent lighting technology products are slightly more popular than LED lighting technology products. This can be partially blamed on the lack of awareness and understanding of the advantages and benefits of LED lighting systems across the globe.
However, looking at the commercial feasibility of LED lighting technology, it is touted as one of the most promising technologies in the foreseeable future. This forecast by MRFR is ably supported by a remarkable price reduction in LED lighting products, making them commercially more viable.
The LED lighting market is segmented based on installation type, product, and application.
The installation type is segmented into retrofit installation and new installation. The retrofit installation refers to a multitude of tasks that must complete before the consumers begin to remove or install cable. The retrofit addresses a unique set of circumstances, determined by the scope and design of the cabling installation.
The product segment consists of lamps and luminaries. The lamps subsegment is estimated to be the dominant market as it is the major light source and main component of an LED lighting system. Growing consumer awareness about conserving energy and installing light systems having high energy efficiency are envisaged to boost the LED lighting market for lamps.
The application segment is sub-segmented into indoor lighting and outdoor lighting. The outdoor application segment has a higher market share because a majority of the outdoor applications of lighting are largely exposed to local government decision making and hence, are directly influenced by public policy interventions.
The regional segmentation of LED Market has been studied in regions, namely Asia Pacific (APAC), Americas, Europe and Rest of the World.
APAC has observed significant market development on account of rapid infrastructure activities in various industries. The booming real-estate sector can be termed as the main reason for the remarkable market performance in the region. Backed by swift penetration of LED lighting in developing nations like China and India, APAC possesses several areas of opportunity which are untapped. Further, the region has emerged as a hub for major original equipment manufacturers (OEMs) for miscellaneous lighting products, rendering it a highly successful LED lighting market.
The report acknowledges Europe as the top contender in the global market, holding the largest market share. This growth is primarily attributed to the increasing demand for outdoor application coupled with stringent energy efficiency regulation.
In the Americas, Strong Dollar Policy makes the United States (U.S) the growth driver of global LED lighting market. Meanwhile, in a bid to maintain industrial development, the nation is promoting LED lighting local assembly, to meet the local market demand and also expand the market. Additionally, major manufacturers in the region are actively developing LED lighting business, resulting in rising LED lighting penetration rate.
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