The LED Lighting Market is projected to reach USD 118.4 billion by 2029 from USD 78.9 billion in 2024; it is expected to grow at a CAGR of 8.5% from 2024 to 2029. The increasing use of smart lighting systems, favorable government initiatives and regulations, along with growing investments in R&D due to rising demand for bulbs and luminaires to drive the demand for growth in this market.

“Favorable government initiatives and regulations for energy efficient LED lighting solutions across the world to drive the growth of LED Lighting Market.”
Governments globally are progressively acknowledging the significance of energy efficiency and sustainability, resulting in the enactment of supportive regulations aimed at encouraging the adoption of LED lighting solutions. These regulatory measures are strategically crafted to incentivize the shift from conventional lighting technologies to more energy-efficient and eco-friendly alternatives.

“The Outdoor segment is expected to grow at a higher CAGR during forecasted period.”
The outdoor segment is anticipated to experience a higher CAGR of 10.8% throughout the forecast period. This growth is attributed to the rising deployment of energy-efficient lighting systems in outdoor initiatives such as street and road lighting, tunnel lighting, floodlighting, and stadiums and sports complexes. Given that outdoor projects are predominantly funded by government entities, there is a heightened focus on energy conservation and cost efficiency. Presently, approximately 317 million streetlights are operational globally, and this figure is projected to increase to 363 million by 2027, presenting substantial opportunities for the adoption of LED lighting solutions in outdoor applications.

“The new installation segment is expected hold the majority market share during the forecasted duration.”
New installation involves the complete setup of advanced LED lighting systems, incorporating the latest LED lamps and luminaires. Integrating new LED light fixtures is a straightforward process, compatible with new construction projects similar to other lighting technologies. In contrast to retrofit installation, which entails a partial upgrade of lighting systems, new installation encompasses the full replacement of a traditional lighting setup. This entails the phased removal of the existing lamp, along with its associated controls and fixtures, making way for the installation of LED lamps and their corresponding controls and fixtures. When comparing LED lighting fixtures to retrofitting, a significant differentiator lies in the cost implications. The implementation of LED lighting fixtures can incur higher expenses due to the necessity of replacing the existing lighting infrastructure, leading to additional costs associated with hiring a qualified electrician.

“The market for the luminaires segment is expected to grow at a higher CAGR during the forecast period.”
The luminaires segment is projected to experience a higher CAGR of 6.9% throughout the forecast period. This growth is attributed to the expanding deployment of energy-efficient lighting systems in outdoor projects such as street and road lighting, tunnel lighting, floodlighting, stadiums, and sports complexes. Moreover, the growing awareness among contractors and project managers about the advantages associated with LED luminaires, including extended lifespan and significant energy-saving potential, is contributing to the upward trajectory of the luminaires segment.

“Asia-Pacific region to hold largest market share in the LED Lighting Market in 2023.”
Asia Pacific is poised to take the lead in the LED lighting market throughout the forecast period, with the region expected to exhibit the highest Compound Annual Growth Rate. The significant driver behind the growth of the LED lighting market in Asia Pacific is the escalating demand for LED lighting solutions in major economies such as China, India, Japan, Australia, and South Korea. Simultaneously, the surge in construction activities across residential, commercial, and industrial sectors in developing economies within Asia Pacific, including Southeast Asian countries, is a key catalyst for the growth of the LED lighting market in the region.

Breakdown of profiles of primary participants:

  • By Company Type: Tier 1 = 20%, Tier 2 = 45%, and Tier 3 = 35%
  • By Designation: C-level Executives = 35%, Directors = 25%, and Others = 40%
  • By Region: North America = 45%, Europe = 25%, Asia Pacific = 20%, and Rest of the World = 10%

Major players profiled in this report:
The LED Lighting Market is dominated by established players such as Signify Holding (Netherlands), Acuity Brands, Inc.(US), Cree Lighting USA LLC (US), ams-OSRAM AG (Austria), LG Electronics (South Korea), Dialight (UK), Panasonic Corporation (Japan), Hubbell (US), Zumtobel Group (Germany), and Savant Systems, Inc. (US).

Research coverage
This report offers detailed insights into the LED Lighting Market based on Product Type (Lamps and Luminaires), { by lamps (A-Type, T-Type, and Other Lamp Types (Type-B and Type-C LE Lamps)), By luminaires (downlighting, decorative lighting, directional lighting, and other luminaire types (Surface Mounted, In-ground and Pendant Luminaires)),} on Application (Indoor and Outdoor),{ (based on indoor (residential, commercial, industrial, and other indoor applications (government buildings and public spaces), By commercial (offices, ratail stores, horticulture gardens, and others )) based on Outdoor (streets and roadways, architectural buildings, sports complexes, and tunnels)}, based on Installation (new and retrofit), based on Sales Channel (retail/wholesale, direct sales, and E-commerce) and Region (North America, Europe, Asia Pacific, and Rest of the World)- Global Forecast to 2029
The report also comprehensively reviews maraket drivers, restraints, opportunities, and challenges in the LED Lighting Market. The report also covers qualitative aspects in addition to the quantitative aspects of these markets.

Reasons To Buy the report:
The report will help the leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall market and the sub-segments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the LED Lighting Market’s pulse and provides information on key market drivers, restraints, challenges, and opportunities. This report includes statistics pertaining to the LED Lighting Market based on product type, application, installation, sales channel, and region. Major drivers, restraints, opportunities, and challenges for the LED Lighting Market have been provided in detail in this report. The report includes illustrative segmentation, analysis, and forecast for the LED Lighting Market based on its segments.

The report provides insights on the following pointers:

  • Analysis of key drivers (Increasing utilization of smart lighting systems in several applications, Surging adoption of LED bulbs and luminaires to achieve goal of net-zero emissions by 2050, Rising demand for LED lighting systems in residential interior designing and home decorating applications, Ongoing release of new innovative LED products due to constant technological advances, LED lighting positively impacting human health & well-being, Favorable government initiatives and regulations for energy efficient LED lighting solutions across the world), restraints (High installation cost of larger projects, Short-to-medium-term impact on market due to US–China trade conflict and ongoing Russia–Ukraine war, and Functional problems associated with LED technology), opportunities (Government initiatives to reduce energy consumption and cut down GHG emissions from public electricity and heat production, Continuous decline in prices of LED chips and other components of lighting systems, Growing adoption of wireless LED lighting technology for outdoor applications, and Rising adoption of LED lighting in horticulture sector ) and challenges (Slow rate of adoption of LED technology in developing countries, Constant threat of data/security breach in IOT-based lighting systems, Lack of common open standards for LED lighting ).
  • Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product launches in the LED Lighting Market
  • Market Development: Comprehensive information about lucrative markets – the report analyses the LED Lighting Market across varied regions
  • Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the LED Lighting Market
  • Competitive Assessment: In-depth assessment of market shares, growth strategies, and product offerings of leading players like Signify Holding (Netherlands), Acuity Brands, Inc.(US), Cree Lighting USA LLC (US), ams-OSRAM AG (Austria), LG Electronics (South Korea), Dialight (UK), Panasonic Corporation (Japan), Hubbell (US), Zumtobel Group (Germany), Savant Systems, Inc. (US).