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The general lighting market size is forecast to increase by USD 60.8 billion at a CAGR of 7.72% between 2023 and 2028. The growth of the LED market is influenced by several factors, including the decreasing manufacturing costs of LEDs, the increasing adoption of energy-efficient lighting technologies, and the rising demand for LEDs in the automotive sector. The reduced cost of LED production makes these technologies more accessible, promoting widespread use across various industries. Additionally, the emphasis on energy efficiency is driving consumers and businesses to switch to LED lighting solutions. The automotive industry, in particular, is contributing to market expansion by incorporating LEDs into vehicle designs for improved performance and aesthetics. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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The Market encompasses various lighting solutions for Indoor and Open Air regions. Ambient lighting systems, utilizing Lightweight Sparkle or Harsh Glare, are essential for Photography and Cinematography. Natural light is often enhanced through Interior Design, which incorporates Suspended Lights, Recessed Lights, and Hardware. Software & Services, including Lighting Systems and Light Control Systems, play a crucial role in optimizing energy consumption using LEDs and electricity. The market caters to diverse sectors such as Residential, Hospitality and Retail, Healthcare, Office Buildings, and Interior Designing. LEDs, a significant component of lighting solutions, are increasingly popular due to their energy efficiency and long lifespan. Metals and Artificial Intelligence are also integral to the development of advanced Luminaires and lighting technologies. The Global Lighting Market is a thriving industry, with continuous advancements in technology and design trends. LEDs, as a primary focus, are expected to drive market growth, offering enhanced functionality and energy savings. The integration of advanced Lighting Systems and Light Control Systems further expands market opportunities. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The declining manufacturing cost of LEDs is notably driving the market growth. LED production costs have declined substantially due to government subsidies for the procurement of semiconductor equipment, such as metal-organic chemical vapour deposition (MOCVD) equipment, which is used in the manufacture of LEDs. As a result, LED lighting product manufacturers have increased their LED production capacity. Furthermore, government assistance has aided vendors in lowering the variable costs involved with production by operating their manufacturing facilities at full capacity.
Moreover, another major factor is the shift toward larger-diameter sapphire substrates, which are used to produce LED chips. Earlier, 2-4-inch wafers were commonly used in the production of LED chips. However, the recent move to 6-8-inch wafers has enabled manufacturers to generate more LED chips per wafer, lowering production costs. As the price wars in the LED market intensify, producers will increasingly focus on cost-saving and the usage of large-diameter sapphire wafers for LED production. This will accelerate the production of LEDs as the manufacture of large wafers allows suppliers to produce more chips per wafer. This is expected to result in a further decline in the ASP of LEDs. The declining ASP of LEDs will accelerate the adoption of LED lighting across all application segments. Hence, such factors are driving the market during the forecast period.
A growing number of households and urbanization is the primary trend driving the market growth. Urbanization around the globe, particularly in emerging economies, is driving up demand for lighting systems from an expanding number of households. The residential segment is a key contributor to the increasing demand for lighting devices. The increase in urbanization will result in a growing number of households worldwide, thereby driving the installation of new lamps and luminaires. This will lead to an increase in the unit shipments and revenue of general lighting products.
Moreover, according to the World Bank, China accounted for an urban population of nearly 57% in 2020. It is also observing a high growth in the urban middle-class population, which is expected to account for more than 75% of the total population by 2022. The market in China will observe high growth because of the increasing demand for luxury homes and high-class residential societies. This is expected to accelerate the demand for LED lamps and luminaires. Brazil is becoming a popular destination among commercial business entities. This is leading to rapid urbanization in many areas of Brazil, including Rio de Janeiro and Sao Paulo. According to World Bank data, Brazil accounted for an urban population of close to 86% in 2020. This is expected to increase the demand for residential and commercial buildings, such as shopping malls and office spaces, thereby contributing to the growth of residential and commercial lighting. Hence, such factors are driving the market during the forecast period.
The high average cost per LED fixture may impede the market growth. Though the total cost of owning LED lamps and fixtures is low compared with traditional incandescent and halogen bulbs, the high initial cost acts as a hindrance. The total cost of installation includes the cost of LED luminaires and labor costs.
In addition, consumers who install smart lighting fixtures require a huge amount of money to set up the Internet of Things (IoT) infrastructure. The price of incorporating smart bulbs in a fixture also varies depending on the bulb type and manufacturer. The price of products from major smart LED bulb manufacturers costs USD15- USD180, hindering the growth of the market in focus further during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Signify NV - Through the digital solutions segment, the company offers luminaires, lighting systems, and services related to the Internet of Things to customers in the professional segment. the company's key offerings include general lighting through the Interact and Philips brands.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the LED lighting segment will be significant during the forecast period. The LED lighting products segment is expected to be the largest segment of the market in focus during the forecast period. Earlier, traditional lighting sources, such as CFLs, LFLs, and HID lamps, were used across all application segments because of their low price and ease of installation. The demand for intelligent lighting systems in industrial facilities, the economic benefits of LED lamps over LFLs and CFLs in commercial applications (retail outlets and offices), and the focus on conserving electricity and reducing the carbon footprint have compelled government and local municipalities and consumers across the globe to adopt energy-efficient and eco-friendly lighting systems such as LED lighting products.
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The LED lighting segment showed a gradual increase in market share from USD 57.90 billion in 2018 and continued to grow by 2021. Governments of various countries worldwide are banning the use of traditional lighting products and promoting the use of LED lighting. LED lights are preferred over other lights, such as incandescent lamps and CFLs, because of their enhanced energy efficiency. LEDs consume up to 75% less energy than other bulbs and have a longer lifespan, which is 60,000 hours compared with 1,500 hours for incandescent bulbs and 8,000 hours for CFLs. LEDs are also called green lighting systems because of their energy-saving features. All these factors result in the growing demand for LED lights, thus spurring the growth of the global market during the period forecasted. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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APAC is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in APAC is growing at a rapid rate, primarily because of the increased demand for lighting solutions from the residential and commercial segments. The region is becoming a hub for industries such as retail, hospitality, and healthcare. Many multinational companies are setting up their offices in the region. The increasing urbanization and growth in IT infrastructure are leading to the development of smart infrastructure in several countries in the region, including India, China, Japan, and others, accelerating further the demand for efficient lighting solutions. In addition, developing countries, such as China and India, will see many international events being organized during the forecast period. For instance, the 13th edition of the ICC men's Cricket World Cup (CWC) will be held in several cities throughout India in October and November 2023. The holding of such mega-events is expected to drive the demand for general lighting solutions, thereby fostering the growth of the market in APAC during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The Market is evolving rapidly, driven by advancements in LED technology and artificial intelligence. Indoor and open air regions benefit from ambient lighting solutions that provide a lightweight sparkle without the harsh glare often associated with older technologies. The market landscape depends on Framework and Residential area. In photography and cinematography, the use of natural light combined with advanced luminaire and light control systems enhances visual outputs, creating a spacious visual environment.
Key components of this market include suspended lights and recessed lights, which are pivotal in enhanced interior design. These fixtures are increasingly found in residential areas, office buildings, and the hospitality and retail sectors. The integration of hardware, software & services in lighting solutions allows for more dynamic and adaptable lighting environments. Pendant lamps and ornate fixtures are particularly popular for highlighting architectural elements and adding unique touches to interior designing.
The market's fastest-growing segment includes smart lighting systems that utilize artificial intelligence for improved efficiency and control. Flexible openings and unique furnishings further complement these lighting solutions, contributing to a more tailored and aesthetically pleasing environment. LED technology outpaces traditional CFL and LFL options in efficiency and longevity, while automotive lighting and backlighting applications continue to expand. As the demand for advanced lighting solutions grows, the market for general lighting will increasingly incorporate metals and other durable materials in its designs, ensuring both functionality and style. This integration supports the creation of environments that are not only well-lit but also inviting and energy-efficient.
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Market Scope |
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Report Coverage |
Details |
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Page number |
182 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.72% |
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Market growth 2024-2028 |
USD 60.8 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.04 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 44% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Acuity Brands Inc., Advanced Lighting Technologies LLC, Bridgelux Inc., Citizen Watch Co. of America Inc., Cree Lighting, Delta Electronics Inc., Dialight Plc, Eaton Corp. Plc, General Electric Co., Hafele America Co., Hubbell Inc., Lumens Co. Ltd., OSRAM Licht AG, Panasonic Holdings Corp., Philips International BV, Schneider Electric SE, Selux AG, Signify NV, Wipro Ltd., and Zumtobel Group AG |
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Market dynamics |
Parent market analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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