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The industrial lighting market size is estimated to increase by USD 3.25 billion at a CAGR of 6.43% between 2023 and 2028. The LED lighting market is experiencing significant growth due to several key factors. One of these factors is the increasing adoption of energy-efficient lighting technologies in various industries and communities. This trend is being driven by modernization and infrastructure development, as well as government initiatives to promote energy efficiency within the industrial sector. As a result, the demand for LED lighting solutions is on the rise, leading to innovation and growth opportunities in this market. Stakeholders are prioritizing efficiency and environmental consciousness, which is fostering the evolution of LED lighting technology. This evolution is offering diverse solutions, such as outdoor landscape lighting, to meet the growing demands of industries and communities around the world. The market's expansion is also being fueled by the uptick in energy-efficient lighting adoption, which is reducing energy consumption and costs for businesses and organizations. With the growing emphasis on sustainability initiatives, the market for LED lighting is poised for continued growth and innovation. In conclusion, the global LED lighting market is experiencing significant growth due to various factors, including the adoption of energy-efficient lighting technologies, modernization and infrastructure development, and government initiatives.
Market Forecast 2024-2028
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Lighting plays a pivotal role in catering to the illumination requirements of various industries in the global marketplace. These industries include manufacturing, oil and gas, mining, and construction sectors. In today's business landscape, energy-efficient solutions have gained significant traction in industrial settings due to their cost-effective advantages and environmental benefits. One of the most prominent trends in this market is the adoption of commercial light-emitting diode (LED) lighting. LED lighting boasts several advantages, such as a longer lifespan, reduced maintenance, and substantial energy savings. In contrast, traditional florescent lights are gradually being phased out due to their higher energy consumption and shorter lifespan. The growth of this market is fueled by several factors, including the increasing industrialization, a growing awareness of energy efficiency, and government regulations that promote energy-efficient lighting. The global lighting market is expected to expand in the coming years, driven by these factors and the continuous advancements in lighting technology.
The industrial lighting market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in USD Billion for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
In the current market landscape, the shift towards LED light sources is gaining significant momentum. Conventional lighting options, such as incandescent, fluorescent, and halogen bulbs, are being phased out due to the superior longevity and energy efficiency of LEDs. As corporations prioritize energy conservation, the Energy Information Administration (EIA) and the Department of Energy (DOE) play pivotal roles in establishing standardization and advocating for solid-state lighting (SSL) technologies. Innovations like connected lighting solutions and advanced spotlighting, as well as advancements in automotive LED lighting, are transforming the industry, providing greater installation flexibility and energy savings. Furthermore, organizations such as the European Union (EU) and the Office of National Statistics (ONS) are instrumental in shaping regulatory frameworks and influencing market trends.
The LED technology segment is experiencing substantial growth in the global market during the forecast period. The worldwide adoption of LED components and LED-based luminaires is expanding rapidly among end-users. The primary reasons for this impressive market expansion include LEDs' energy-efficient properties, decreasing costs, and compatibility with existing fixtures. This trend is expected to continue as LED technology becomes increasingly preferred for its cost effectiveness and environmental benefits.
The LED technology segment was valued at USD 4.61 billion in 2018. LED lighting has experienced substantial growth in Japan following the Fukushima nuclear disaster and the resulting energy crisis. This event significantly increased the demand for energy-efficient alternatives, such as LEDs. Furthermore, the European Commission's decision to ban low-voltage halogen lamps will further accelerate the adoption of LED lighting during the forecast period. This ban will not only influence residential and commercial markets but also impact the sale of automotive halogen headlights.
The LED lighting market is experiencing substantial growth in North America, driven by the widespread adoption of energy-efficient LED light sources. Companies like Dialight Group and Signify are spearheading this trend with innovative products, such as the ProSite LED floodlight. Traditional lighting sources, including linear fluorescent lamps, metal halide lamps, and incandescent bulbs, are being phased out. Public institutions are upgrading their infrastructure and improving safety through extended operational hours and energy-efficient lighting solutions. These LED modules offer extended lifespan and reduced energy consumption, making them suitable for various industries, including manufacturing, warehousing, and logistics. Natural gas and electricity are being replaced with energy-efficient alternatives. The penetration of LEDs is expanding, with SSL (solid-state lghting) and HIDs (high-intensity discharge) being the primary installation types. Companies are providing connected lighting solutions for spot lighting and product development. Energy efficiency initiatives, such as eco-design, are fueling the market's modernization. The Lighting Control Association and the Global Lighting Association are supporting these advancements, including effective stadium lighting.
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APAC is estimated to contribute 47% to the market growth by 2028. Technavio's analysts have meticulously outlined the regional trends, influencers, and obstacles anticipated to impact the market in the upcoming period. The APAC region is predominantly driven by China, with its vast number of LED lighting manufacturing facilities and MOCVD subsidies since 2010. Key players, such as Dialight Group and Signify, provide energy-efficient LED light sources, like ProSite LED floodlights, in this market. Japan is poised to make a substantial contribution due to the maturity of commercial LED lighting and its emphasis on the industrial sector within the commercial lighting market.
Public institutions are embracing LED modules for modernization and infrastructure development. Energy efficiency and longevity are essential factors in the Indian LED lighting market, as LEDs consume less energy and last longer than conventional sources, such as Linear fluorescent lamps, Metal halide lamps, Incandescent bulbs, and HIDs. Innovations in lighting include connected lighting solutions and spot lighting, catering to a wide range of applications. Natural gas and electricity are prevalent energy sources, with energy efficiency being a primary concern. Leading organizations, including ONS, Global Lighting Association, Lighting Controls Association, SSL, and Ecodesign, set industry standards and regulations. Reports indicate the expanding market presence of LEDs in India and the ongoing transition from fluorescent and halogen light bulbs towards more efficient LED lighting alternatives.
The industrial lighting market is a substantial sector within the global industry, with commercial LED lights and sources emerging as key players due to their innovative offerings. The demand for energy-efficient and long-lasting industrial lighting systems is escalating, driving the popularity of LED technology. Traditional choices for industrial applications, such as fluorescent lights and lamps, continue to be used but are being surpassed by LED technology's advantages, including longer lifespan, energy efficiency, and reduced maintenance costs. The diagnostic and maintenance of these lighting systems are essential to maximize their performance and longevity. The organizational structure and grouping of industrial lighting companies significantly impact their ability to cater to the diverse requirements of the industrial sector.
In the coming years, the industrial lighting and prosite market are anticipated to expand considerably due to the rising demand for cost-effective and energy-efficient lighting solutions. Careful consideration is necessary when selecting the lamps and modules for industrial lighting systems. Although metal and halide lamps have been extensively utilized in industrial applications, they are being phased out in favor of LED technology. The consumables and incidentals used in the maintenance of these lighting systems are also vital factors for industrial buyers. The bulbs and ballasts employed in industrial lighting systems must be carefully chosen to ensure optimal performance and energy efficiency. The pricing strategy and financing options availability are crucial elements that influence the purchasing decision in the market.
In the European Union and numerous industries, there is a notable trend towards adopting energy-efficient lighting technologies, with a focus on LED solutions. Conventional lighting systems, including T-5 fluorescents, CFLs, LPS lamps, and HID lights, are being phased out due to LED technology's energy efficiency, extended lifespan, and superior performance. The Department of Energy (DOE) and industrial lighting companies, such as Dialight, are spearheading this transformation.
LED technology presents substantial energy cost savings, making it an alluring option for industrial facilities with extensive lighting requirements. Government initiatives advocating energy conservation and standardization regulations are additional driving forces. Although the upfront costs for LED lighting installations are typically greater than traditional systems, the long-term advantages far outweigh the initial investment. LED lighting is suitable for various applications, including industrial, commercial, and outdoor environments. Moreover, the exploration of LNG (liquefied natural gas) as a potential energy source for LED lighting systems is further fueling the growth of the industrial lighting market.
The European Union (EU) industrial lighting sector is experiencing a notable evolution, fueled by the integration of sophisticated lighting technologies such as LED, smart lighting systems, and connected controls. In place of conventional lighting options like T-5 fluorescents, compact fluorescent lamps (CFL), low-pressure sodium (LPS), and high-intensity discharge (HID) lamps, energy-efficient LED alternatives are gaining traction. Pioneering industrial lighting companies, such as Dialight, are spearheading this transition with cutting-edge LED lighting solutions designed for diverse industrial applications. The U.S. Department of Energy (DOE) and regulatory standards are instrumental in driving this trend towards energy conservation and standardization.
Urbanization and infrastructure growth in the EU are generating fresh demands for energy-efficient lighting systems in industries, warehouses, and the burgeoning e-commerce sector. Although the upfront costs of LED technology may be greater than traditional lighting sources, the long-term energy savings and efficiency make it a financially sound investment. Smart lighting systems, which incorporate sensors, wireless connectivity, and data-driven algorithms, are redefining industrial lighting by optimizing energy usage, adapting to occupancy patterns, and ensuring optimal lighting for operational tasks. The future of industrial lighting lies in these advanced, adaptive, and energy-efficient solutions.
The emphasis on sustainability involves implementing eco-friendly and energy-efficient alternatives, such as CFLs and LED lighting, which minimize environmental impact. However, certain technologies, including LEDs, necessitate the use of rare earth elements, like phosphor-based LEDs, which are in limited supply. The burgeoning demand for these materials due to the expansion of the industry can result in price fluctuations and supply chain interruptions.
To promote sustainability and energy efficiency, manufacturers must prioritize these factors in their products. Consumers, in turn, require education on the advantages of sustainable options to make informed purchasing decisions. Furthermore, governments can offer incentives and support to foster the adoption of sustainable solutions. Consequently, these elements may hinder the growth of the industrial lighting market during the forecast period.
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.
Acuity Brands Inc.: The company offers industrial lighting solutions such as Linear High Bay, Low Bay, and Modular Wiring.
We also have detailed analyses of the market's competitive landscape and offer information on the market Share of 20 market companies, including:
ams OSRAM AG, Bajaj Electricals Ltd., Dialight Plc, Eaton Corp. Plc, Emerson Electric Co., Fagerhult Group, General Electric Co., Glamox Group, Hubbell Inc., Iwasaki Electric Co. Ltd., Legrand SA, Mulinsen Co. Ltd., Panasonic Holdings Corp., RAB lighting Inc., Signify NV, TRILUX GmbH and Co. KG, Wipro Ltd., Wolfspeed Inc., and Zumtobel Group AG
Technavio's market report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The market analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Based on their quantitative data analysis, companies are specially categorized into dominant, leading, strong, tentative, and weak.
The industrial lighting market in Europe and Asia-Pacific regions holds substantial importance, particularly in sectors like mining. The ProSite LED floodlight series is a notable option for this industry due to its ignition resistance and durability, surpassing the capabilities of older lamps. Warehouses can enhance safety and productivity by upgrading to these advanced lighting modules. Government entities and public organizations, influenced by EU policies, are advocating for eco-design rules, such as the adoption of LED A-class bulbs, to minimize energy consumption and achieve net-zero carbon emissions. With a focus on reducing energy costs, major industry players like Signify and Dialight Group are prioritizing innovation, concentrating on energy efficiency, luminosity, and resistance to shock and corrosion. As the market expands, there is increasing concern over maintenance costs and regulations, especially post-pandemic, making the need for efficient, long-lasting, and cost-effective lighting solutions like the Pacific LED gen5 waterproof luminaire more pressing.
The shift towards LED light sources is gaining traction due to ongoing innovations and advancements in solid-state lighting (SSL) technology, driven by organizations such as the Energy Information Administration (EIA) and the Department of Energy (DOE). Traditional lighting alternatives, such as fluorescent bulbs, are being replaced by more efficient LED lights due to their superior durability and energy-saving capabilities. Regulatory bodies, including the EU, are also shaping the industry landscape by phasing out technologies like compact fluorescent lamps (CFL), linear fluorescent lamps (LFL), and high-intensity discharge (HID) lights in favor of more sustainable options.
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Market Scope |
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Report Coverage |
Details |
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Page number |
178 |
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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 6.43% |
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Market growth 2024-2028 |
USD 3.25 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.81 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 47% |
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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., ams OSRAM AG, Bajaj Electricals Ltd., Dialight Plc, Eaton Corp. Plc, Emerson Electric Co., Fagerhult Group, General Electric Co., Glamox Group, Hubbell Inc., Iwasaki Electric Co. Ltd., Legrand SA, Mulinsen Co. Ltd., Panasonic Holdings Corp., RAB lighting Inc., Signify NV, TRILUX GmbH and Co. KG, Wipro Ltd., Wolfspeed Inc., and Zumtobel Group AG |
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Market dynamics |
Market Analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market Trends, COVID-19 impact and recovery analysis and future consumer dynamics, Market Analysis and report for the forecast period. |
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Customization purview |
If our industrial lighting market growth and trends 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 industrial lighting market research and growth report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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