LED Market Size 2024-2028

The LED market size is estimated to grow by USD 219.8 million, at a CAGR of 18.52% between 2023 and 2028. The rising adoption of energy-efficient lighting technologies, particularly LED lighting, is driven by various factors including significant energy savings and heightened environmental awareness. Regulatory measures drive the transition from mercury-containing lighting products to safer alternatives, aligning with efforts to reduce mercury emissions and exposure. Moreover, the automotive sector's increasing demand for these technologies, exemplified by automotive LED lighting, LED grow lights, LED headlights and taillights, further fuels LED market expansion. This trend underscores a broader shift towards sustainability and innovation, as industries and consumers alike prioritize eco-friendly solutions that not only enhance energy efficiency but also mitigate environmental impact, shaping the future of lighting technology.

What will be the Size of the LED Market During the Forecast Period?

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The global LED market is experiencing a period of rapid evolution, driven by a combination of factors, including advancements in technology, increasing energy efficiency, and growing environmental concerns. Key trends shaping the industry include a shift towards high-power LEDs, the increasing popularity of LED lighting in various applications, and a growing focus on the development of innovative LED products. As LED technology continues to improve and become more affordable, there is a rising demand for LEDs in various sectors, including lighting, automotive, and consumer electronics. The LED market is also witnessing a shift towards high-power LEDs, which offer greater brightness and efficiency. Additionally, the increasing adoption of LED lighting in various applications, such as residential, commercial, and industrial lighting, is driving demand for LED products. Overall, the global LED market presents both challenges and opportunities for businesses, as they navigate the evolving landscape and strive to meet the changing needs of consumers.  

LED Market Segmentation

The LED market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Product Outlook
  • Luminaires
  • Lamps
• Application Outlook 
  • General lighting
  • Automotive lighting
  • Backlight
  • Others
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Brazil
    • Chile
    • Argentina

By Product 

Based on product, the market is segmented into luminaires and lamps. The market share growth by the luminaires segment will be significant during the forecast period. LED luminaires include products such as downlights, troffers, roadway fixtures, outdoor landscape lighting, and others. The widespread adoption of light-emitting diode products across the world is due to their numerous benefits. light-emitting diode luminaires, such as downlights, are widely used in the residential, office, and retail sectors, while troffers are used in the industrial sector.

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The luminaires were the largest and were valued at USD 69.90 million in 2018. LED luminaires are widely used across all sectors due to their energy efficiency and longer lifespan. Light-emitting diode luminaires are increasingly being integrated into exit lights, floodlights, grow lights, as well as high-bay and low-bay lights, which were traditionally integrated with incandescent, fluorescent, and HID luminaires.

By Application 

Based on the application, the market is segmented into general lighting, automotive lighting, backlight, and others. The general lighting segment held the largest market share in 2021. The segment is experiencing an increase in the demand for LEDs due to favorable government regulations worldwide. Initiatives like the Domestic Efficient Lighting Program in India have promoted Light-emitting diode (LED) usage through subsidies and awareness campaigns. Factors such as declining prices, smart lighting demand, high efficacy, and eco-friendly solutions drive LED growth. The segment includes retail, architectural, office, hospitality, industrial, outdoor, and residential. LED adoption offers energy efficiency, cost savings, and improved experiences. China, India, and Brazil are key LED markets for growth.

By Region

APAC is estimated to contribute 51% to the growth by 2028. Technavio's analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the LED market during the forecast period.  

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The primary reason behind the rapid growth of the APAC LED market is the increase in demand for light-emitting diode solutions from both the residential and commercial segments. The region is becoming a hub for industries such as retail, hospitality, and healthcare. Offices established by various multinational companies are also being set up in this region. Smart infrastructure is being developed through improvements in the IT infrastructure in many countries across the region. Significant growth in the light-emitting diode market is attributed to both the growing construction market along with increasing investments by governments in infrastructure projects in various countries. Many international events will be organized in emerging economies, including China and India during the forecast period, which will help increase the demand.

LED Market Dynamics

The market is driven by a myriad of factors, including continuous LED advancements and innovations in LED technology. From LED displays to LED signage and LED strips, the versatility and efficiency of LED solutions such as smart LED indoor signage are reshaping various industries. However, challenges such as the complexity of LED engineering and ensuring sustainable LED production processes remain prevalent. Nonetheless, ongoing LED research and developments promise to address these challenges, paving the way for further growth and adoption of LED technology across diverse applications.

The global LED market is undergoing a period of significant transformation, driven by a confluence of factors, including advancements in technology, increasing energy efficiency, and growing environmental concerns. Key trends shaping the industry include a shift towards high-power LEDs, the increasing popularity of LED lighting in various applications, and a growing focus on the development of innovative LED products. As LED technology continues to improve and become more affordable, there is a rising demand for LEDs in various sectors, including lighting, automotive, and consumer electronics. The LED market is also witnessing a shift towards high-power LEDs, which offer greater brightness and efficiency. Additionally, the increasing adoption of LED lighting in various applications, such as residential, commercial, and industrial lighting, is driving market growth.

Key Market Driver

The growing adoption of energy-efficient lighting technologies is a major driver boosting LED market growth. The electricity demand has increased due to the rising need for lighting, which currently accounts for about 20% of global electricity consumption. To address this, governments worldwide are promoting energy-efficient lighting technologies. LED applications, innovations, research, developments, and production are all areas receiving significant attention as part of this push for energy efficiency. Some countries have even banned incandescent bulbs, leading to a greater adoption of energy-efficient alternatives like automotive halogen headlights, CFL, LFL, and LED lighting technologies. These products, in particular, are expected to be more widely adopted between 2017 and 2022 due to their cost-effectiveness and energy-saving features. LEDs consume less energy than traditional incandescent bulbs and have a longer lifespan. Manufacturers are increasingly focusing on developing energy-efficient and eco-friendly solutions, driving market growth.

Moreover, intelligent lighting, which provides automated and energy-efficient capabilities, is becoming more popular. This technology uses sensors to adjust the intensity and duration based on factors such as human motion and occupancy, offering energy and cost savings. With the expansion of wireless communication infrastructure, intelligent products are finding applications in residential, outdoor, and architectural lighting, with LEDs being the preferred choice. These applications highlight the benefits of LED lighting, including energy efficiency, advanced technology, and various fixture options. Governments around the world have introduced programs to promote the adoption of energy-efficient products and reduce carbon emissions. Certifications like ENERGY STAR, DLC, and Lighting Design Lab ensure that products meet specific guidelines for color quality, lifespan, energy efficiency, and optical output. For example, ENERGY STAR-certified LED products consume 75% less energy than incandescent bulbs. With these advantages, the use of LEDs is expected to surpass traditional technologies across all sectors in the coming years.

Significant Market Trends

The growing traction of intelligent lighting systems is a major factor hindering LED market growth. The industry is undergoing a digital revolution, driven by the adoption of smart lighting and other key systems and controls. The demand for energy-efficient and cost-effective solutions is on the rise. These systems utilize movement detection, daylight equalization, and control technology to enhance efficiency. These systems feature smart LED fixtures with built-in sensors that detect natural daylight and adjust accordingly. Wireless controls enable easy customization of lighting settings. Embedded intelligence in these products enables adaptability to changing space requirements, particularly in office buildings. Controllers offer functionalities like dimming, timers, and color-changing options for multiple lights. Smart LED bulbs enhance room ambiance, offering energy efficiency and color control. These bulbs are controlled via hubs connected to the internet, allowing users to manage through mobile apps.

Further, these products with integrated sensors and controls are experiencing high demand, especially in outdoor and industrial applications. These segments require durable lighting solutions that can withstand harsh conditions without frequent maintenance. Lighting control systems with LEDs automatically respond to daylight and occupancy, optimizing energy usage. The longevity of light sources is crucial in industries operating 24/7. These systems not only save energy but also provide valuable data for energy analysis and maintenance purposes.

Major Market Challenge

The high average cost per fixture is a major factor hindering LED market growth. Despite the declining ASPs of LED lighting products worldwide, adoption is a challenge because of the high average cost per fixture. The initial costs incurred by customers for the installation of these fixtures are comparatively much higher than those of traditional incandescent or halogen bulbs. This initial cost includes the cost of LED fixtures such as wires as well as labor costs. There are a few challenges related to the use of LEDs. For instance, in newly built homes, wiring is not a concern while installing LED bulbs.

However, older homes might require renovation of the electrical system for the safe installation of LED bulbs, which increases the installation cost of LED bulbs. Moreover, if consumers opt for these solutions, they incur additional costs on procurement and installation of the required IoT infrastructure.

Who are the Major LED Market Companies?

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.

SMART Global Holdings Inc.- The company offers LED such as DL DR6BD14AWG, DL DR6BD14KKG, and DL DR6BD14WWE.

We also have detailed analyses of the market's competitive landscape and offer information on 20 market companies, including:

• Acuity Brands Inc.
• ams OSRAM AG
• Bridgelux Inc.
• Dialight Plc
• Eaton Corp. Plc
• Ennostar Inc.
• Everlight Electronics Co. Ltd.
• General Electric Co.
• Havells India Ltd.
• LITE ON Technology Corp.
• Lumileds Holding BV
• Nichia Corp.
• Seoul Semiconductor Co. Ltd.
• Sharp Corp.
• Toyoda Gosei Co. Ltd.
• WOOREE E and L
• Zumtobel Group AG
• Samsung Electronics Co. Ltd.
• Signify NV

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis. 

Market Analyst Overview

The LED market witnesses growth in demand for its diverse applications across industries. From LED lamps illuminating homes to LED street lights brightening urban landscapes, LED technology dominates the lighting sector with its efficiency and versatility. LED panels and LED screens revolutionize display LED backlighting applications, offering superior performance over traditional sources like incandescent bulbs, CFLs, and cold cathode fluorescent lamp (CCFL). As environmental concerns mount, LED's energy-saving LED benefits drive its adoption, leading to financial savings and reduced electrical energy consumption. However, challenges such as flickering and production costs persist, prompting ongoing innovation in LED design and LED components. With an environment-friendly approach and a strong LED value chain, the LED industry continues to thrive, shaping the future of lighting technology.

The LED market is experiencing significant growth, with LED drivers, modules, and downlights becoming increasingly popular alternatives to traditional incandescent light sources. LED manufacturers and suppliers are at the forefront of this trend, constantly innovating and developing new LED systems to improve efficiency and functionality. One of the most notable LED developments is the use of OLED (organic light emitting diode) technology for display backlighting applications. This technology offers superior color accuracy and contrast, making it ideal for use in ceiling lights and other types of LED downlights. LED chips are a crucial component of these systems, with advancements in chip technology leading to improved brightness, longevity, and energy efficiency. LED innovations continue to shape the market, with new applications in outdoor lighting, horticulture, and automotive industries.

As the LED market continues to evolve, it is important for businesses and consumers to stay informed about the latest trends and developments. Whether it is LED drivers, modules, or downlights, working with reputable LED manufacturers and suppliers is essential for ensuring the best possible product and value. In addition, LED floodlights and LED tubes dominate outdoor and indoor lighting, offering energy efficiency and durability. As the market expands, manufacturers and suppliers strive to optimize LED materials and LED controllers to meet demand. The benefits of UV LED technology, including improved efficiency and longevity compared to traditional sources like incandescent bulbs and compact fluorescent lamp (CFL), drive its widespread adoption. Despite initial production costs, the long-term financial savings and environmental advantages solidify LED's position as the lighting solution of the future.

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What are the Key Data Covered in this LED Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028 
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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