According to Coherent Market Insights, a global market intelligence and consulting organization, the global LED lighting market is projected to reach over US$ 120 billion by 2025, exhibiting a CAGR of 16.61% over the forecast period (2017-2025).
The LED lighting market is mainly driven by advantageous features offered by LED lights over incandescent and fluorescent lamps such as increased energy efficiency, longer lifetime, enhanced physical strength, smaller size, design flexibility, and environmental friendliness. Vigorous product invention coupled with advancements in technology is gaining customer attraction globally due to drastic transformation in semiconductor industry and evolution of light bulbs from incandescent bulbs, led to smart and intelligent energy efficient LED lighting systems.
Thriving innovation of smart lighting and smart city has increased the demand for LED street lights. Additionally, the global demand for green technologies is fueling growth of the LED light market. This reduced energy consumption directly converts into a reduction of over 700 million tons of carbon dioxide emissions annually. LEDs are estimated to completely replace CFLs and CCFLs in the near future.
LED Bulb segment holds the highest market share
Among product type, the LED bulb segment is estimated to be the leading market for LED lighting, as bulbs form the major light source and key component of an LED lighting system.
Installation Services segment holds a dominant position
Among service type, the installation segment is expected to experience highest growth, due to high demand for energy-efficient light sources such as LED bulbs. The old generation lamps are being replaced and retrofitted with LED bulbs, as they offer longer working life and consume less energy.
Commercial segment is expected to be the fastest growing segment
Among end-use industry, the commercial segment is estimated to exhibit a higher growth rate during forecast period (2017 – 2025). Increasing infrastructural activities globally, contributes to the large market size and high growth rate of the segment.
Outdoor LED Lighting System accounted major market share
Increasing use of LED lighting for outdoor application such as roadways, traffic lights, tunnels, parking lots, garages is expected to offer substantial growth prospects to this segment in the near future.
Asia Pacific accounted for the largest market share
Asia Pacific held the largest share of the LED lighting market in 2016. The market in Europe is projected to emerge as the second largest market by 2025 due to its relatively high standard of living and high disposable income among the populace, which is augmenting growth of the LED lighting market in the region. Meanwhile, Asia Pacific is growing at high pace due to flourishing infrastructural renovation in emerging economies such as China and India.
LED Lighting Industry Infrastructure Growth and Development 2018 to 2026, Coherent Market Insights, March 13, 2019