LED Market Expected to Reach $192.68 Billion by 2030—Allied Market Research

According to a new report published by Allied Market Research, titled, “LED Market," the global LED Market size was valued at $78.69 billion in 2020, and is projected to reach $192.68 billion by 2030, growing at a CAGR of 8.2% from 2021 to 2030. Asia-Pacific is expected to be the leading contributor to the global LED Market, followed by Europe and North America.

A light-emitting diode (LED) is a semiconductor light source that converts electrical energy directly into light energy. Light emitting diodes (LEDs) are used in variety of applications. Application of LED was limited to certain specific lighting needs and were not introduced in the mainstream general lighting applications. Introduction of LED in applications such as general lightings has  fueled  the market growth. 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 application purposes such as backlighting in large screen LED display and automotive lighting.

The LED market possesses high potential. This is attributed to the fact that presently, there is increase in demand for LED lighting in the residential sector, particularly in the U.S., China, India, and other developing countries. Moreover, companies in this industry adopt various innovative techniques to provide customers with advanced and innovative product offerings.

LEDs are used in lamps to replace incandescent light sources, owing to advantages such as prolonged shelf life, low power requirement, and small sized & robust attribute. In spite of such advantages, LEDs are more expensive compared to conventional lighting and are voltage sensitive, which impede the LED market growth. The LED technology is expected to provide a superior advantage to its users than conventional lighting systems in the future, owing to the benefits it offers.

The LED market analysis is provided on the basis of product, application, end user, and region. On the basis of product, the market is categorized into LED lamps and LED fixtures. Depending on application, it is divided into indoor lighting and outdoor lighting. As per the end user, it is fragmented into industrial, commercial, residential, and others.

Region wise, the LED Market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, France, Russia, and rest of Europe), Asia-Pacific (China, Japan, Australia, India, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa). Asia-Pacific dominated the LED Market across the globe, due to the presence of large number of manufacturers. Thus, local manufacturers have numerous growth opportunities in the market. In addition, surge in demand for low-power consuming lighting solutions is expected to provide ample opportunities for the prominent players operating in the LED market. Several countries in Asia-Pacific such as India and China aims to phase out the its traditional incandescent & fluorescent bulbs and tubes and replace them with the latest LEDs. All these factors are expected to create lucrative opportunities for Asia-Pacific LED Industry.

COVID-19 Impact Analysis

The COVID-19 pandemic 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 LED Market. The LED Market witnessed decline in its growth rate, owing to delayed construction projects. However, the demand for UV LED from the medical industry accelerated during the pandemic.

Key findings of the study

• By product, in 2020, the LED lamps segment generated the highest revenue in the global LED market share.
• In 2020, the indoor lighting sub segment garnered the highest revenue among the application segment.

The key players profiled in the report include Cree, Inc., Everlight Electronics Co., Ltd., General Electric Company, LG Innotek Co., Ltd., Lumens Co., Ltd., Lumileds Holding B.V., Nichia Corporation, Koninklijke Philips N.V., Osram Licht AG, and Seoul Semiconductor Co. Ltd. Market players have adopted various strategies such as product launch, collaboration & partnership, joint venture, and acquisition to expand their foothold in the LED Market.