A New Study Sheds Light on What to Expect in the Global LED Lighting Market After the COVID Crisis
The global market for LED Lighting is projected to recover from the current COVID-19 pandemic to reach US$78.7 billion by 2027.
Global Industry Analysts, Inc. (GIA) launches comprehensive analysis of industry segments, market trends, growth drivers, market share, size and demand forecasts on the global LED Lighting market. Report segmentation includes Product Type (Lamps, Luminaires); Application (Indoor, Outdoor); End-Use (Residential, Commercial, Industrial, Other End-Uses)
24 June 1:49 A.M., California/Marketwire/ - According to the new market research report, the global market for LED Lighting is projected to recover from the current COVID-19 pandemic to reach US$78.7 billion by 2027. With the energy industry the hardest hit by the pandemic and the stringent lockdown and restrictions imposed by governments worldwide, LED lighting market will feel the shocks. Factory closures in most countries as a result of the ongoing lockdowns are disrupting production and cash flows of utilities, affecting all the players in the energy value chain including lighting component suppliers. Supply chain disruptions are pushing up prices of LED lamps and luminaries in countries reliant on component supplies from China. Increased prices are a revenue buster for companies at a time when consumer confidence is hitting rock bottom as the deadly march of the pandemic pushes the human costs of the crisis to unbelievable highs. Innovations are already receiving a setback with industry events such as Light Fair 2020 being cancelled in light of the still spreading pandemic.
As governments dole out financial packages to prevent complete economic collapse, widening fiscal deficits which is evitable will impact opportunities that come from smart city initiatives. With unemployment levels already beginning to surge worldwide as economic activities come to a halt causing businesses to collapse, a COVID-19related recession is now inevitable. With unemployment comes fall in consumer confidence, erosion of household wealth and decline in discretionary spending, all of which will directly impact for sales in the consumer sector. Spending on smart homes will be hit hard and LED Lighting will feel the pain as LED technology is the foundation for smart lighting. Light Emitting Diodes (LEDs) are semiconductor devices that convert electricity into visible light. LED is a solid-state lighting type since the light is emitted from a solid semiconductor material unlike from a vacuum or gas as is the case in traditional incandescent and fluorescent bulbs.
Light emitted by LEDs is in a very narrow wavelength range and is not inherently white. Several such LEDs are clustered into a package, attached with the required optics and integrated into a casing and made to resemble a traditional incandescent light bulb. Base line growth drivers in the market which will re-emerge in the post COVID-19 period include the ever-present focus on energy efficiency as the hidden weapon against carbon emissions; rising investments in energy efficient lighting technologies against the backdrop of the development of smart cities and smart homes; regulatory and policy support for LED adoption; and LEDs suitability in smart lighting concepts. Falling cost of LED chipsets purely from a technology standpoint will helping make the technology more cost-competitive with other traditional lighting technologies such as compact fluorescent lights, metal halide, high pressure sodium lights, and incandescent lights.
Benefits of LEDs over traditional lighting systems include longer durability and lifespan; high levels of energy efficiency equating to over 65% to 75% reduction in electricity consumption; improved safety as there is significantly lower heat generation as compared to compact fluorescent lights and high intensity discharge lights; small and compact form factor; high color rendering index (CRI) which is a very desirable lighting characteristic in most applications; generate directional light emissions that eliminate the need for accessory devices to redirect the light; eco-friendly as they eliminate the use of toxic mercury; resistance to a wide range of temperatures from hot to cold; ability to operate on low voltage; higher controllability such as dimming capability; zero IR and UV emissions. Future growth in the market will come from expanding applications in traffic signals, commercial and residential mood lighting, factory and warehouse lighting; healthcare and hospital lighting, among others. Europe and Asia-Pacific represent large markets worldwide. Asia-Pacific and Latin America are forecast to emerge into the fastest growing markets supported by healthy economic growth, robust industrialization and urbanization; growing awareness over the importance of energy efficiency in achieving carbon reduction targets; push for increasingly higher standards for more energy efficiency; and continuous innovations in LED technology that encourage adoption in a wide range of applications.
Key Competitors Covered in the Report
Acuity Brands Lighting Inc.
Bajaj Electricals Ltd.
Current Powered by GE
Eaton Corporation plc
FW Thorpe Plc
Havells India Limited
Hubbell Lighting Inc.
LEDvance LLC Inc.
NVC Lighting Technology Corporation
Opple Lighting Co. Ltd.
PhotonStar LED Group plc
Samsung Electronics Co. Ltd.
Schreder Group GIE
Targetti Sankey S.p.A.
TCP International Holdings Ltd.
TRILUX GmbH & Co. KG
Zumtobel Group AG
Geographies Analyzed in the Report
Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe)
Asia-Pacific (Australia, India, South Korea, and Rest of Asia-Pacific)
Latin America (Argentina, Brazil, Mexico, and Rest of Latin America)
Middle East (Iran, Israel, Saudi Arabia, United Arab Emirates, and Rest of Middle East)
This latest edition of the research study is conducted and published by Global Industry Analysts, Inc., in close collaboration with senior executives in the industry driving strategy, business development, marketing, sales, product management, technology and operations. All analysis and findings published in the report are based on validated engagements from a total executive pool size of 7968. Among this pool, 1116 direct interactions with domain experts were carried out via our proprietary market research platform, MarketGlass. Among the 239 unique participations, a total of 108 validated responses were received as part of this report's primary research outreach program. We are unique in the industry to provide our clients with the validated list executive engagements and the complete project data stack.
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) (www.strategyr.com) is the world's only influencer driven AI powered market research company. Serving more than 41,000 clients from 36 countries, GIA is recognized for accurate forecasting of markets and industries for 33 years, offering the widest coverage of topics, geographic markets, competitive brands, and companies profiled.
Director, Corporate Communications
Global Industry Analysts, Inc.