Feb 1, 2017: According to a Zion Market Research report, the global LED lighting market accounted for US$ 26.09 billion in 2016, and is expected to reach US$ 54.28 billion by 2022, growing at a CAGR of around 13% between 2017 and 2022.
LEDs are lighting sources for general lighting applications with ten times as efficient as compared to incandescent lighting. Such attribute combined with their long working life and reliability has made them the suitable choice for next generation of lighting systems including emergency, backlight, automotive, indoor and outdoor. To ensure accurate operation and to control the light intensity, LEDs need an efficient driver, normally implemented by power electronics-based conversion stages to match the LED characteristics with the AC grid voltage and to generate a controllable and high-quality light.
Benefits of LED lights
Benefits offered by LED lights over incandescent and fluorescent lamps is the major factor driving the LED lighting market growth. In additions, the energy efficiency of LED lights, higher brightness, and longer life span are some of the major reason offers tremendous market opportunities for LED lighting in coming years. Continuous new product introduction by manufacturers such as Philips and GE with innovative technology are attracting the customer globally. However, the high production cost is expected to have an adverse impact on LED lighting market. Nonetheless, screen and display backlighting market development are likely to open new doors for the LED lighting demand.
Residential application segment
Residential application segment dominated the LED lighting market and accounted over 40% of market share of in 2016. Residential applications for LED lighting include lighting for bathrooms, hallways, dining rooms and kitchens. Increasing use of LED lighting for outdoor application such as roadways, traffic lights, tunnels, parking lots, and garages is expected to provide significant growth opportunities to this market in coming years. The architectural application includes both functional and decorative lighting. Decorative LEDs are used to light up pools, gardens, fountains, and statues. The functional application includes landscaping and building facades.
Europe holds the largest share
Europe held the largest share of the global LED lighting market and is set to continue to dominate the world marketplace within the forecast period. This growth is mainly attributed to the rising demand for outdoor application paired with stringent energy efficiency regulation. The significant demand for LED lighting for the residential purposes such as lighting for bathrooms, hallways, dining rooms and kitchens is the major factor in surging the market growth in this region. Implementation of the EU Green Paper can lead to new opportunities for the European LED market in near futures. Europe accounted for over 31% of market share in 2016.
North America is a leading market
North America is another leading regional market for LED lighting and is expected to witness noteworthy growth in the near future. Regulation over energy efficient product and high disposal income will help to drive demand for LED lighting for architectural application. U.S. is expected to be one of the lucrative markets for LED lighting manufacturers.
Asia-pacific is the fastest growing market
Asia-pacific is considered to be the fastest growing market for LED lighting and expected to hold significant market share in years to come. Developing infrastructure of roads, upcoming development projects, the booming construction industry in developing countries such as China, India, and Indonesia is expected to create massive demand for LED lighting for residential as well as outdoor application. It will include roadways, traffic lights, tunnels, parking lots and garages, lighting in bathrooms, hallways, dining rooms, and kitchens.
Latin America market emerging
Latin America is comparatively new and is still open for new companies and brands. Brazil will take control of the leadership role in LED lighting implementation. It is aggressively picking up on the deployment of government-installed LED-based streetlights. The Middle East and Africa is also forecasted to show significant growth in the coming years. U.A.E. and Saudi Arabia are predicted to hold noticeable market share in near future.
Key LED companies
LED Lighting market is dominated by some of the key participants such as Cooper Industries Plc, Osram Opto, Cree Incorporation, Zumtobel AG, Toshiba Corporation, Philips Electronics N.V., Digital Lumens, Inc. and GE lightings.