Industrial and Commercial LED Lighting Market is Expected to Reach $172.95 Billion by 2030-Allied Market Research

According to a new report published by Allied Market Research, titled, "Industrial and Commercial LED lighting Market by Product, Application, and End User: Global Opportunity Analysis and Industry Forecast, 2021–2030," 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. Asia-Pacific is expected to be the leading contributor to the global industrial and commercial LED lighting industry, followed by Europe and North America.

A light-emitting diode (LED) is a semiconductor light source that converts electrical energy directly into light energy. The output ranges from blue violet (about 400 nanometer (nm)) to red (about 700 nm). Some LEDs are called infrared emitting diodes (IRED) or emitting infrared (IR) energy, which is greater than or equal to 830 nm. An LED consists of two elements of processed material called N-type semiconductors and P-type semiconductors, which are placed in direct contact to forms a region called P-N junction.

The industrial and commercial LED lighting market share possesses high potential. This is attributed to the fact that in the current business scenario, there is increase in demand for industrial and commercial LED lighting, particularly in developing regions. Moreover, companies in this industry are adopting various innovative techniques to provide customers with advanced and innovative product offerings.

Rapid usage of LEDs has been witnessed in lamps as a replacement of incandescent light source, 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 as compared to conventional lighting, and are voltage sensitive, which impede the growth of this market. In the near future, the LED technology is expected to provide a superior advantage to its users than conventional lighting systems, owing to the benefits it offers.

The global industrial and commercial LED lighting market is segmented into product, application, end user, and region. On the basis of product, the market is segmented into LED lamps and LED fixtures. By application, it is segmented into indoor lighting and outdoor lighting. By end user, it is segmented into e industrial and commercial.

Region wise, the industrial and commercial LED lighting market is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, 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 industrial and commercial LED lighting market globally, 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 creates ample opportunities for the prominent players operating in the industrial and commercial LED lighting market analysis. Several countries in Asia-Pacific region such as India and China aims to phase out the its traditional incandescent fluorescent bulbs and tubes, and get them replaced with the latest LEDs. All these factors create lucrative opportunities for Asia-Pacific industrial and commercial LED lighting market growth.

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 industrial and commercial LED lighting market trends for commercial and industrial sector. The industrial and commercial LED lighting market witnessed dip in its growth rate, owing to delayed construction projects, which led to a substantial impact. However, the demand from the medical industry accelerated during the pandemic.

Key Findings of the Study

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

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. Market players have adopted various strategies such as product launch, collaboration & partnership, joint venture, and acquisition to expand their foothold in the industrial and commercial LED lighting market.