Market Overview

The LED Lighting Market was valued at USD 75.81 billion in 2020 is expected to reach USD 160.03 billion by 2026 at a CAGR of 14.25% over the forecast period 2021 - 2026. By transitioning to energy-efficient LEDs, an estimated savings of USD 18 billion in electricity costs can be achieved. Furthermore, more than 160 million metric tons of carbon dioxide emissions can be avoided every year.

• Lighting accounts for nearly 10% of electricity usage in households and 18–40% of commercial premises. There is a growing need for energy saving across the globe, which is creating scope for the market. It is expected that the transition to energy-efficient lighting would reduce the global electricity demand for lighting by 30-40% in 2030.
• Countries across the globe are widely adopting LED lighting. For instance, New York planned to replace 250,000 streetlights with LEDs, which was to be followed by the replacement of decorative lights in the urban areas. Barcelona (Spain) deployed more than 3,000 smart streetlights based on LED technology, which gathers information about pollution, humidity, noise, and the overall environment.
• Moreover, the U.S. Department of Energy (DOE) anticipates that, by 2020, more than 75% of the outdoor luminaire shipments will be light-emitting diodes (LEDs). Moreover, assuming the efficacy of LED luminaires surges an additional 50% over current levels by 2020, as the DOE predicted, the outdoor lighting fixtures would be designed with even smaller and sleeker footprints.
• The growing consumer awareness about the environment and the durability of these lights, along with the government mandates for energy efficiency, are the drivers for the growing adoption of LEDs. For instance, the Chennai airport, as part of its green initiatives, bought six sets of LED base lights for use for disaster relief, as part of the measures to make its lights and fixtures energy-friendly.
• Smart lighting is expected to be the future of LED lighting, with various companies, like Philips, Magiclight, and Xiaomi, investing in the technology. Philips is one of the market leaders with its product, Philips Hue, which can be integrated with voice assistants.