Industrial and Commercial LED Lighting Market Outlook – 2030
The global industrial and commercial LED lighting market size was valued at $29.90 billion in 2020, and is projected to reach $172.95 billion by 2030, growing at a CAGR of 18.1% from 2021 to 2030.
The light generated by an incandescent light bulb filament is a result of the electrical energy getting converted into heat energy, which is then converted into light energy. A light-emitting diode (LED) is a semiconductor light source that converts electrical energy directly into light energy. These devices are often used in lamps as a replacement of incandescent light sources. LED lighting is expected to be one of the most energy-efficient and rapidly developing lighting technology in the global market. LED lights operate for a longer duration, are durable in nature, and offer better lighting quality compared to traditional lighting technologies.
LED is expected to take over the conventional compact fluorescent lamp (CFL) and cold cathode fluorescent lamp (CCFL) lighting market due to advanced features. Moreover, it is a cost-effective solution for all lighting as well as other applications such as backlighting in large screen displays, non-backlight and displays (OLED). Apart from the aforementioned cost benefit, the initial cost of LED lighting is very high, and this restricts its initial acceptance.
However, due to longer lifespan of LEDs, the overall cost of the same is found to be very low in comparison to CFLs. In the coming years, consumers will gain awareness regarding the benefits of longer lifetime of LED lamps and would increase adoption of LED products such as LED lamps and ceiling lights. Growth in display and large screen backlighting applications, decrease in cost of LED lamps, longer life span, and higher efficacy of LED are key factors that boost the industrial and commercial LED lighting market growth.
Top Impacting Factors
The notable factors positively affecting the global industrial and commercial LED lighting market include increase in demand for cost-effective and energy-saving LED lighting, rise in government initiatives toward LED adoption, and surge in need to replace traditional lighting system. However, high initial cost of LED lighting system and voltage sensitivity & temperature dependency are expected to hinder the market growth.
Segment Overview
The industrial and commercial LED lighting market is segmented on the basis of product, application, end user, and region.
On the basis of product, the market is segmented into LED lamps and LED fixtures. The production of LED products such as ceiling lights and led fixtures involves the implementation of a variety of technologies. Some manufacture LED chips and components, while some are involved in the production of lamps and fixtures. Further, others are expected to be involved in all the steps to deliver the final product to the consumers.
By Product Type
Led Fixtures segment is expected to secure leading position during forecast period.
By application, it is segmented into indoor lighting and outdoor lighting. Features of LEDs, such as reduced power requirement, which leads to financial savings, being environment-friendly due to minimum use of mercury, and low flickering supplement the growth of the industrial and commercial LED lighting in the region. Furthermore, lower production costs of LED lights are anticipated to provide lucrative growth opportunities for the industrial and commercial LED lighting market.
By Application
Indoor Lightning segment is projected as one of the most lucrative segments.
By end user, it is segmented into industrial and commercial. There are various factors that significantly affect the industrial and commercial LED lighting market. Factors such as increase in demand for cost-effective and energy-saving LED lighting, rise in government initiatives toward LED adoption, and surge in need to replace traditional lighting system drive the growth of the market. However, high initial cost of LED lighting technology and presence of voltage sensitivity and temperature dependency hamper the market growth. Furthermore, increase in adoption of smart lighting system is expected to offer lucrative opportunities to the industrial and commercial LED lighting market growth.
Region wise, the industrial and commercial LED lighting market is analyzed across North America, Europe, Asia–Pacific, and LAMEA.
By Region
Asia-Pacific would exhibit the highest CAGR of 19.4% during 2021-2030
Competitive Analysis
The key players profiled in the report include Wolfspeed, Inc., Deco Lighting, Inc., Dialight PLC., Eaton Corporation, General Electric Company, Koninklijke Philips N.V., Osram Licht AG, Syska, Toshiba Corporation (Toshiba TEC Corporation), and Zumtobel Group. These key players have adopted strategies such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations to enhance their position in the industrial and commercial LED lighting industry.
Covid-19 Impact Analysis
The COVID-19 pandemic has significantly impacted global economies, resulting in workforce & travel restrictions, supply chain & production disruptions, and reduced demand & spending across many sectors. Sudden decline in infrastructure development and installation projects is expected to hamper the market growth for residential, commercial, and industrial verticals.
The industrial and commercial LED lighting market revenue witnessed decline in its growth rate, owing to delayed construction projects, which led to a substantial impact. However, the demand for industrial and commercial LED lighting from the medical industry has accelerated during the pandemic. Furthermore, market players have been investing in R&D of smart lighting system, owing to increase in governmental initiatives across the world
Therefore, the industrial and commercial LED lighting market size was anticipated to gain momentum by the end of 2021. The slowdown in productions by original equipment manufacturers and reduction in demand for lighting system and other electronics devices have slightly pulled down the industrial and commercial LED lighting market trends. Shortages of components and materials have significantly impacted the global supply chains. In addition, reductions in various capital budgets and delayed planned projects in various industries have hampered the global economy.
Key Benefits for Stakeholders
- This study comprises analytical depiction of the global industrial and commercial LED lighting market size along with the current trends and future estimations to depict the imminent investment pockets.
- The overall industrial and commercial LED lighting market analysis is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and industrial and commercial LED lighting market opportunities with a detailed impact analysis.
- The industrial and commercial LED lighting market forecast is quantitatively analyzed from 2021 to 2030 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
- The report includes the industrial and commercial LED lighting market share of key vendors and market trends.
Industrial & Commercial Led Lighting Market Report Highlights
| Aspects | Details |
 By Product Type |
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 By Application |
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 By Region |
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 Key Market Players | Cree, Inc., Syska Hennessy Group, Dialight, OSRAM (AMS AG), Eaton Corporation, Signify Holding, Acuity Brands, Inc., TOSHIBA CORPORATION (TOSHIBA TEC CORPORATION), Koninklijke Philips N.V., Panasonic Corporation |
Analyst Review
The industrial and commercial LED lighting market holds high growth potential. This is attributed to the fact that in the current business scenario there has been an increase in the demand for industrial and commercial LED lighting, particularly in the developing regions. Companies in this industry are adopting various innovative techniques to provide customers with advanced and innovative product offerings. Rapid usage of LEDs in lamps as a replacement of incandescent light sources, owing to advantages such as longer shelf life, low power requirement, and small sized & robust attributes is a major driver of this market.
The global industrial and commercial LED lightings market is expected to witness high growth rate in the future, due to high efficiency offered by LEDs and favorable government regulations towards reducing cost and pollution. However, high initial cost and voltage sensitivity & temperature dependency impede the market growth.
Considering the regional trends of the industrial and commercial LED lighting market, Asia-Pacific is expected to account for the highest revenue in the global market throughout the forecast period. However, LAMEA is expected to grow at a higher growth rate, predicting a lucrative market growth for industrial and commercial LED lightings.
The key players profiled in the report include Eaton Corporation Plc., Wolfspeed Inc., Deco Enterprises, Inc., Dialight Plc., Osram Licht Ag, General Electric Company, Koninklijke Philips N.V., Toshiba Corporation, Zumtobel Group Ag, and Syska.
The industrial and commercial LED lighting market is estimated to grow at a CAGR of 18.1% from 2021 to 2030.
The industrial and commercial LED lighting market is projected to reach $172.95 billion by 2030.
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Increase in demand for cost-effective and energy-saving LED lighting, rise in government initiatives toward LED adoption, and surge in need to replace traditional lighting system.
The key players profiled in the report include Wolfspeed, Inc., Deco Lighting, Inc., Dialight PLC., Eaton Corporation, General Electric Company, and many more.
On the basis of top growing big corporations, we select top 10 players.
The industrial and commercial LED lighting market is segmented on the basis of product, application, end user, and region.
The key growth strategies of the market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
Led Fixtures segment would grow at a highest CAGR of 19.4% during the forecast period.
Asia-Pacific region will dominate the market by the end of 2030.
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