Global LED Lighting Market TOC
Japanese Players
LED Lighting Market size is poised to reach USD 374.45 billion by the end of 2035, expanding around 14% CAGR during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of LED lighting was USD 74.16 billion. Furthermore, the market is also expected to generate volume of 242.23 billion units by the end of 2035, up from volume of 14.45 billion units in the year 2022. The growth of the market is set to be dominated by the growing demand for electricity. Lighting makes up roughly 15% of a typical home's electricity consumption, and shifting to LED lighting may result in annual energy savings of USD 225 for the typical household.
Moreover, even though LEDs are more expensive than conventional incandescent bulbs, they nonetheless result in cost savings due to their long lifespan and extremely low energy use. However, LED light bulbs have grown significantly less expensive since their introduction to the market, and prices are projected to fall considerably as more products becomes accessible.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
14.0% |
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Base Year Market Size (2022) |
USD 74.16 Billion |
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Forecast Year Market Size (2035) |
USD 374.45 Billion |
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Regional Scope |
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End-User (Commercial, Household, Industrial)
The commercial segment in the LED lighting market is projected to garner the largest revenue of USD 167.11 billion by the end of 2035, up from a revenue of USD 32.91 billion in the year 2022. This growth in the segment could be influenced by a growing number of commercial spaces. For instance, it is anticipated that there are about 93,000 office spaces all across the globe. Therefore, the demand for LED lighting is also growing. Energy-efficient LED lighting can save a business or municipality an enormous amount of money. Moreover, little to no maintenance costs, environmental friendliness, safer working conditions, and higher productivity are further benefits of using LED lighting in commercial spaces.
Sales Channel (Retail/Wholesale, Direct Sales, E-Commerce)
LED lighting market from the e-commerce segment is expected to grow at the highest CAGR of 15% during the forecast period. E-commerce, which is rapidly growing, offers global marketing reach, enables online shopping, and often has lower operational costs for enterprises. The growing popularity of LED lighting through the E-commerce sales channel is being fueled by all of these reasons, which offer excellent incentives for companies and individuals interested in engaging in e-commerce.
Our in-depth analysis of the global market includes the following segments:
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Product |
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Application |
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Sales Channel |
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End-User |
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APEJ Market Forecast
The Asia Pacific LED lighting market excluding Japan is set to capture highest revenue of USD 151.9 billion by the end of 2035, growing at a largest CAGR of 26.4% over the projected period. The market has been stimulated by the increasing need for LED lighting from the residential sector, particularly in China, India, and South Korea. Additionally, the swift expansion of the APAC market can be attributed to continuing infrastructure modernization initiatives in developing nations including China and India, where governments have encouraged the creation of numerous smart cities.
European Market Analysis
The LED lighting market in Europe is also expected to expand over the forecast period with a revenue of USD 96.98 billion by the end of 2035. To promote the use of energy-efficient lighting solutions, Europe has put in place strict laws and standards. For instance, the European Commission has endorsed a regulation that will forbid the sale of any fluorescent lighting in the EU after September 2023. Hence, this is projected to influence the market expansion for LED lighting in this region.
Author Credits: Abhishek Verma, Hetal Singh
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