LED Lighting Market Size and Share Analysis - Growth Trends and Forecast Report 2025-2033

Global LED Lighting Market Trends & Summary

LED Lighting Market is expected to reach US$ 171.13 billion in 2033 from US$ 71.74 billion in 2024, with a CAGR of 10.14% from 2025 to 2033. Among the key drivers driving the market are the increasing need for affordable and energy-efficient lighting solutions, growing public concerns about the environment, and encouraging government attempts to lower emissions.

LED Lighting Market Global Report by Product Type (Lamps, Luminaires), Application (Indoor, Outdoor), End User (Commercial, Residential, Industrial, Others), Sales Channel (Retail/Warehouse, E-Commerce, Direct Sales), Countries and Company Analysis 2025-2033.

LED Lighting Industry Overview

LEDs are semiconductors that, when an electric current flows through them, emit light. Because LED lights use less energy than conventional incandescent and fluorescent lights, they are being used more and more in a variety of industries worldwide. Compared to conventional lights, they frequently last up to 25,000 hours or longer, which is a much longer lifespan. Additionally, because they don't contain mercury, they are more environmentally friendly.

For instance, Syska Group unveiled brand-new LED track lighting in March 2023. These lights are perfect for creating a radiant environment in any space because they are designed to provide ambient and luminous illumination. An affordable and energy-efficient substitute for outdated lighting options is provided by these lighting systems.

Energy-efficient lighting options, including LED lights, are becoming more popular as customer worries about the environment grow. Furthermore, the demand for LED lighting is rising dramatically on a global scale due to its longer lifespan and lower energy use. In addition, the growing demand for visually beautiful and adaptable lighting solutions in the commercial, residential, and industrial sectors is anticipated to support the market for LED lighting.

Growth Drivers for the LED Lighting Market

Growing Individual Concerns About the Environment

The market for LED lighting solutions is being further stimulated by the growing usage of LED lighting due to the growing environmental consciousness among people and government bodies. Sustainable lighting options that help to lessen environmental pollution are becoming more and more popular. In light of this, some major manufacturers are launching energy-efficient and environmentally friendly lighting options. For example, Signify Malaysia launched an extensive line of energy-efficient and environmentally friendly lighting products for the Malaysian market in July 2023. Among these were solar lighting systems and Philips Ultra Efficient LEDs. With its sophisticated LED design and optics technology, Philips Ultra Efficient LED offers a line of LED tubes and bulbs that use 60% less energy than typical LED products in the same category.

Additionally, it might provide more than 3.5 times the lifetime utilization and up to 50,000 hours of light. Accordingly, a variety of solar products, including solar wall lights, solar flood lights, solar garden or landscape lighting devices, and others, are available in the Philips Solar Lighting line. In a similar vein, governments everywhere are investing heavily in implementing environmentally friendly lighting options and modernizing the lighting infrastructure. In June 2023, for example, U.S. government agencies partnered with the U.S. Department of Energy (DOE) to support energy improvements in K-12 schools around the country. They have provided US$178 million in funding. This funding enabled these educational institutions to carry out initiatives aimed at cutting emissions, decreasing energy costs, and creating improved LED lighting solutions.

Growing Need for Cost-effective and Energy-Efficient Lighting Solutions

The demand for LED lighting is mostly being driven by the growing need for affordable and energy-efficient lighting solutions among the general public worldwide. LEDs save a substantial amount of energy since they convert a larger percentage of electrical energy into light. Around the world, people and government officials are paying attention to energy efficiency. The demand for LED lighting is being driven by the widespread use of LED lighting solutions by numerous prominent companies. The market for LED lights is also being further stimulated by the numerous steps being taken by relevant regulatory bodies in various emerging countries to create sustainable and energy-efficient cities.

For instance, the GSMA predicted that by 2025, China might have about 4.1 billion IoT connections, or nearly one-third of all IoT connections globally. Accordingly, in February 2023, Signify provided a smart street lighting system to the German municipality of Eichenzell, assisting them in becoming a future-proof smart city. Eichenzell was able to support future 5G densification and next-generation IoT applications because to its BrightSites solution. Denote LED lighting that has been installed and is controlled by the Interact City System. From a single dashboard, Eichenzell is able to continuously monitor and control every light.

Additionally, GE Lighting, a Savant subsidiary, stated in January 2023 that Cync, its smart home ecosystem, would be expanded. With the launch of its full Dynamic Effects entertainment array, Cync offered 16 million presets, colors, personalized light displays, music syncing on-device, and more. In the upcoming years, it is anticipated that such measures would increase the market share of LED lighting.

The market will grow as a result of more government regulations and incentives for energy-efficient LED lighting solutions.

The progressive phase-out of inefficient lighting technologies and the adoption of energy-efficient alternatives, such LEDs, are required by the strict energy efficiency requirements and regulations that many governments throughout the world have implemented. Governments are encouraging businesses and individuals to convert to LED lighting by providing a range of incentives, such as tax credits and rebates, in addition to legislation. By lowering the initial cost of LED fixtures and serving as a powerful adoption incentive, these incentives propel market expansion and quicken the shift to more environmentally friendly lighting options. Additionally, manufacturers are spending money on research and development to provide more economical and efficient LED solutions in response to rising demand, which is propelling the market's expansion.

The Unnat Jyoti by Affordable LEDs (UJALA) Program, for example, distributed 360 million LED bulbs in January 2022, which is equal to more than 47 billion kWh. The installation of these LEDs reduced CO2 emissions by 37 million tons per year. By increasing the market recognition of energy-saving LED bulbs, the UJALA goal is anticipated to lower the country's energy usage at the start of the program.

Challenges in the LED Lighting Market

LED lighting systems' higher initial deployment costs could impede market expansion.

The level of awareness for LED systems has significantly increased in recent years. The basic cost of buying one of these systems, however, is higher than that of the conventional CFL lighting systems that are now on the market. The initial retail cost of the entire system was raised by the significant expenses associated with the transmitters, diodes, and capacitors that make up these systems. Additionally, suburban consumers have financial difficulties when it comes to installing the newest LED lights and replacing existing lighting systems with LED alternatives. In the end, this will impede the global market's advancement. As a result, the increased cost of these systems will restrain the expansion of the LED lighting market.

Compatibility with existing infrastructure

In the market for LED lighting, compatibility with current infrastructure is a major hurdle. It is challenging to incorporate modern LED solutions without requiring significant changes because many older buildings and systems still utilize conventional lighting technologies. Specialized adapters, drivers, or controllers are frequently needed for retrofitting these systems, which can increase complexity and costs. Further complicating the shift is the possibility that older electrical configurations cannot accommodate the energy-efficient requirements or dimming capabilities of more recent LED lighting.

LED Lighting Market Overview by Regions

The market for LED lighting is expanding internationally, with North America and Europe seeing the highest demand because of laws and energy-saving measures. Because of its manufacturing base and quick uptake in the commercial, industrial, and residential sectors, the Asia-Pacific region—led by China—has the biggest market. Urbanization and sustainable development initiatives are driving growth in Latin America and the Middle East. Africa is experiencing sluggish growth and infrastructure issues.

United States LED Lighting Market

The market for LED lighting in the US is expanding significantly due to rising consumer demand for green and energy-efficient lighting options. State-level incentives and government legislation like the Energy Policy Act have sped up the adoption of LED technology in the commercial, industrial, and residential sectors. The popularity of LED lighting is further increased by its extended lifespan, low energy usage, and affordability.

The market is also expanding as a result of increased automation tendencies and improvements in smart lighting. Expensive outdoor post-top lighting with high-performance optics and a contemporary lantern style was introduced by Cyclone Lighting, a renowned maker of outdoor luminaires, in May 2023. The market picture is still favorable because of consumer awareness and governmental backing, even in the face of obstacles like high beginning costs and competition from other technologies.

Germany LED Lighting Market

The market for LED lighting in Germany is expanding quickly thanks to a strong emphasis on sustainability and energy efficiency. The country's stringent laws, such as the EU Green Deal and the German Energy Efficiency Strategy, promote the use of LED technology in the commercial, industrial, and residential sectors. Concerns about the environment and rising electricity prices are driving the growing demand for energy-efficient solutions. Furthermore, advancements in automation and smart lighting are speeding up market growth.

Leading LED company Signify unveiled new features and merchandise for its WiZ smart lighting system in September 2023. The most noteworthy feature was SpaceSense, a motion detection system that improves user comfort by not requiring the installation of any sensors. Germany's increasing inclination for intelligent, integrated lighting solutions is reflected in this action.

Additionally, in September 2023, Signify introduced its Philips Smart LED lamps. The "Wiz Connected" emblem distinguishes this new product line, which was acquired from WiZ in 2019. It increases customer access to cutting-edge LED lighting solutions by providing reasonably priced and energy-efficient substitutes for the high-end Philips Hue line.

India LED Lighting Market

The market for LED lighting in India is growing quickly as a result of more government programs that encourage inexpensive and energy-efficient lighting, such the UJALA (Unnat Jyoti by Affordable LEDs for All) program. Because of its affordability, energy efficiency, and extended lifespan, LED technology is becoming more and more popular throughout the nation's commercial, industrial, and residential sectors. Demand is mostly driven by increased awareness of environmental sustainability, growing urbanization, and rising electricity costs. Further driving the market's expansion are developments in smart lighting solutions and robust government backing, positioning India as a major player in the global LED industry.

Saudi Arabia LED Lighting Market

The Saudi Arabian market for LED lighting is expanding rapidly due to the nation's Vision 2030 plan's emphasis on sustainability and energy efficiency. Because of its extended lifespan, low energy usage, and cost savings, LED lighting is becoming more and more popular in the commercial, industrial, and residential sectors. The market is expanding as a result of government efforts and rising demand for smart lighting solutions. Saudi Arabia's position in the regional market is being strengthened by the growing use of LEDs brought about by urbanization and increased infrastructure development.

LED Lighting Market Segments

Product Type

1. Lamps
2. Luminaires

Application

1. Indoor
2. Outdoor

End User

1. Commercial
2. Residential
3. Industrial
4. Others

Sales Channel

1. Retail/Warehouse
2. E-Commerce
3. Direct Sales

Countries

North America

1. United States
2. Canada

Europe

1. France
2. Germany
3. Italy
4. Spain
5. United Kingdom
6. Belgium
7. Netherlands
8. Turkey

Asia Pacific

1. China
2. Japan
3. India
4. South Korea
5. Thailand
6. Malaysia
7. Indonesia
8. Australia
9. New Zealand

Latin America

1. Brazil
2. Mexico
3. Argentina

Middle East & Africa

1. Saudi Arabia
2. UAE
3. South Africa  

Rest of the World

All the Key players have been covered from 4 Viewpoints:

1. Overview
2. Key Persons
3. Recent Development & Strategies
4. Revenue Analysis

Key Players Analysis

1. Acuity Brands Inc.
2. Koninklijke Philips N.V.
3. Emerson Electric Co.
4. Hubbell Inc
5. Daktronics Inc.
6. Dialight Plc.
7. LSI Industries Inc.
8. Samsung Electronics Co. Ltd.

Report Details: