LED Lighting Market Trends

Growth Drivers

• Growing Adoption of Smart LED Lighting with Integration of Internet of Things (IoT): As both businesses and customers progressively recognize the advantages of intelligent, energy-efficient, and connected lighting solutions, it is anticipated that the trend of smart LED lighting with IoT integration will expand rapidly. Smart lighting that is IoT-enabled may reduce energy expenditures associated with lighting by close to 79%, which is a big step toward sustainability. Hence, the market for LED lighting is expected to grow.

• Rising Efforts to Save Energy: Light-emitting diode (LED) bulbs have been championed by governments and climate experts as an approach to the world's soaring power usage. Out of which lighting accounts for about 19% and accounts for approximately 5% of all carbon emissions. Without the use of LEDs, the world's energy use for lighting may increase by close to 59% by 2030.

• Surge in Efficiency in LED Lighting: Over the past few years, LED efficacy, or efficiency, has significantly increased. According to the model (directional, non-directional, or tubular), LEDs that are frequently offered in the home market have an efficacy of over 99 lumens per watt (lm/W). LEDs have surpassed all other economically viable alternatives in efficiency. Advanced LED modules (such as those composed of multiple-chip packages on a printed circuit board), for instance, or ongoing advancements in optics, could be utilized to make further advancements. As LEDs operate on direct current (DC), direct current (DC) grids additionally possess the potential to reduce losses associated with converting alternating current (AC) to DC.

Challenges

• High Upfront Cost of LED Lighting - Compared to conventional lighting solutions such as incandescent or fluorescent bulbs, LED lighting solutions often have a greater upfront cost. Although LED lights have a longer lifespan and offer long-term cost benefits owing to their energy efficiency, the greater initial cost may prevent some customers from switching. Hence, this factor could restrain market growth.

• Slow Sustainable Development of LED Lighting

• Lack of Efficiency Under Heat