Surging demand for ambient lighting due to modernization of infrastructure and upcoming smart city projects in developing economies
The ambient lighting market is estimated to be USD 58.0 billion in 2020 and projected to reach USD 88.3 billion by 2025, at a CAGR of 8.8%. The key factors contributing to the growth of the market are modernization of infrastructure and upcoming smart city projects in developing economies, government initiatives and policies for energy savings, and increasing consumer preferences for better interior designing with energy-efficient lighting systems.
Ambient lighting is an energy-efficient solution and one of the major innovative solutions in the lighting technology field. The adoption of ambient lighting solutions helps adjust indoor and outdoor environments according to weather conditions. With the modernization of infrastructure, the demand for smart lighting is increasing to enhance living environments. Ambient lighting plays an important role in enhancing cities by creating an ambient atmosphere, resulting in increased tourism, economic development, and community pride.
The market for software is expected to grow at highest CAGR between 2020 and 2025
The ambient lighting software and services market is expected to grow at the highest CAGR during the forecast period. This growth can be attributed to the increasing demand for energy-efficient lighting in South America and the Middle East. With the sluggish growth in new projects due to COVID-19 and the changing priorities of the customers toward retrofitting installations, there is likely to be more focus on the maintenance of existing lighting infrastructure. Thus, a sudden growth is anticipated for maintenance and support services.
The market for hospitality and retail is estimated to grow at highest CAGR during the forecast period
The ambient lighting market for the hospitality and retail sector is likely to grow at the highest CAGR from 2020 to 2025. Hospitality is among the major businesses worldwide and covers a significant share in almost every region. According to the US Environmental Protection Agency (EPA), hotels in the US comprise more than 5 billion square feet of space and spend more than USD 7.5 billion on energy annually. The major companies in the hospitality sector are focusing more on the adoption of energy-efficient lighting solutions in their space. Hence, the demand for new and efficient lighting solutions in the hospitality sector is expected to increase during the forecast period.
The market for recessed lights estimated to grow at highest CAGR during the forecast period
The market for recessed lights growing at the highest CAGR during the forecast period. The market growth can be attributed to the flexibility of these lights to fit in surfaces and their increasing end users in the residential and commercial sectors. Surging demand for recessed lighting from residential, hotels, retail showrooms, and offices is also propelling the growth. Availability in various colors and installation flexibility are some of the other factors fueling the growth of this market.
Ambient lighting market in RoW to grow at the highest CAGR between 2020 and 2025
Major driving factors for the growth of the ambient lighting market in the RoW region are the ongoing construction activities in the Middle Eastern countries, increasing awareness about the importance and payback of energy-efficient lighting solutions, and strong economic growth leading to a wave of urbanization in this region. The other factors such as increasing concerns over environment and energy-savings, and the growing importance of modern lighting devices in residential and hospitality & retail segments are the key factors driving the growth in this region.
The breakup of primaries conducted during the study is depicted below:
- By Company Type: Tier 1 – 35 %, Tier 2 – 40%, and Tier 3 –25%
- By Designation: C-Level Executives – 57%, Directors – 29%, and Others – 14%
- By Region: Americas– 40%, Europe – 30%, APAC – 20%, and RoW – 10%
The report segments the ambient lighting market and forecasts its size, by volume and value, based on region (Americas, Europe, Asia Pacific, and RoW), offering (hardware, and software and services), type (recessed lights, surface-mounted lights, suspended lights, track lights, and strip lights), and end user (residential, hospitality & retail, healthcare, office buildings, industrial, and automotive)
The report also provides a comprehensive review of market drivers, restraints, opportunities, and challenges in the automotive ambient lighting market. The report also covers qualitative aspects in addition to the quantitative aspects of these markets.
Key Benefits of Buying This Report
- This report includes the market statistics pertaining to offering, type, end user, and region.
- An in-depth value chain analysis has been done to provide deep insight into the ambient lighting market.
- Major market drivers, restraints, challenges, and opportunities have been detailed in this report.
- Illustrative segmentation, analyses, and forecasts for the market based on offering, type, end user and region have been conducted to provide an overall view of the ambient lighting market.
- The report includes an in-depth analysis and ranking of key players.