Light Engine Market size is estimated to reach USD 488.3 Billion by the end of 2035, witnessing around 14% CAGR during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of light engine was USD 88.9 Billion. The growth of the market can be attributed to the several government mandates enforced on energy conservation and LED adoption. Thus, people are opting for LED lighting due to the regulations enforced by the government related to energy conservation. As per the India Brand Equity Foundation, the Indian government distributed LED bulbs at a price of USD 0.12 in rural areas to households.
The residential sector is expected to grow revenue by the end of the estimated time frame, owing to increased industrialization and the number of smart cities initiatives around the world. As a result, the rising adoption of LED lighting in residential buildings is a driving reason behind the strong customer demand.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~14% |
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Base Year Market Size (2022) |
~ USD 88.9 Billion |
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Forecast Year Market Size (2035) |
~ USD 488.3 Billion |
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Regional Scope |
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Growth Drivers
Challenges
Since the previous few years, light-emitting diode devices have grown in popularity. The initial cost of one of the units of these type of diode system, however, is substantially higher than the present CFL lighting system.
End User (Residential, Industrial, Commercial)
The commercial end-use sector held the largest revenue share of more than 48%. The desire for advanced lighting among event, museum, and exhibition operators to enhance lighting solutions is one of the primary factors behind the swift development of the commercial construction industry worldwide. The requirement for high-luminance light engine lights is increasing primarily due to the need for office lighting to comply with government rules and standards, which is driving market growth.
Product Type (Lamps, Luminaires)
The luminaires segment accounted for 54% share of the global light engine market in 2022 and is expected to maintain its dominance in the worldwide industry. Light engine lights are all luminaires utilized in track illumination, high bays, troffers, and lighting on roads. The setting up of additional track lights and light posts as a result of the growing creation of projects related to the development of the country.
Our in-depth analysis of the global market includes the following segments:
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Product Type |
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Installation Type
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End User |
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APAC Market Statistics
The light engine market in the Asia Pacific is estimated to gather the largest gain of 32 % over the forecast period. The rapid rise in population and surging adoption of light engine lights are also assessed to accelerate the region’s market growth in the coming years. According to the most current data, Asia spans 29.4% of the surface of the earth and has an estimated population of over 4.75 billion people (as of 2022), making up roughly 60% of the global population. As of 2022, the total population of China and India was expected to exceed 2.8 billion people.
European Market Analysis
Europe is projected to account for the market's second-largest revenue share in the year 2035. The expansion of this field can be attributed to the IT industry's thriving construction sector, which is benefiting from increasing investments and new infrastructure development efforts. The construction industry is vital to the European Union's economy. The sector employs 18 million people directly and accounts for around 9% of the EU's GDP. Moreover, the architectural consultancy is expected to be driven throughout the projection period by the eventual resumption of the construction of multiple data center structures that had been briefly halted owing to the COVID-19 pandemic. Furthermore, Germany is expected to have the highest CAGR during the estimated time frame owing to the country's huge production units of smart home devices.
Author Credits: Abhishek Verma, Hetal Singh
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