Lighting Market Size, Share, Growth and Industry Analysis, By Type (LED, Incandescent, & Others), By Application (Residential, Commercial, & Industrial) and Regional Forecast to 2032

Updated On: 04 November 2024

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LIGHTING MARKET REPORT OVERVIEW

The Lighting Market Size was Valued at US$ 139050 Million in 2023. The Market is likely to Surpass US$ 169782.6 Million by 2032 at a CAGR of 2% During the Forecast period [2024-2032].

The global market for lighting is expected to see tremendous growth in the near future, with a variety of factors at play. Growing impetus in favour of energy efficiency and sustainable lighting solutions has augmented the demand for new-fangled lighting technologies. As consumers and corporates try to trim down energy use, thereby keeping utility bills in check, the market witnesses a deluge of demand for energy-efficient lighting items such as LEDs. And it is rising because smart lighting systems for a smart home or commercial buildings provide more convenience and efficiency.

COVID-19 Impact: Market Growth Restraint by the Pandemic Due to Disruption in the Supply Chain

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

Supply chains, manufacturing, and retail business operations were all severely disrupted by the pandemic and their effects were finally seen in a decrease in consumer spending, especially on acceptably considered non-essential items like lighting. The interruption was the opportunity for shopping that is related to the lockdowns and social distancing measures, and that further affected the sales and distribution in the lighting market. Lighting-market demand and revenues therefore declined. While over time the market will recover with the improvement in the situation, in the immediate effect, COVID-19 has primarily dealt a blow to the global market.

LATEST TRENDS

"Smart Lighting Systems Set to Spur Market Growth"

An emerging trend in the global lighting market is the smart lighting system that includes innovative solutions for the modern consumer. Lighting manufacturers have added functions, like remote, automation, and voice activation, in their products right from the innovation of smart home technologies. These smart attributes bring comfort and convenience in the way one manages and customizes lights. Some smart systems come with mobile app connectivity that allows the monitoring of energy use and making changes even while out of the house. The feature of smart lighting systems as part of the product category signifies the impetus of the industry, directing its orientation toward the needs and preferences of users for high-tech and state-of-the-art lighting solutions in the global market.

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SEGMENTATION OF THE LIGHTING MARKET

Based on Type

The global market has been divided into various types for understanding its segmentation:

• LED: Energy-efficient, long-lasting lighting solution; Used in every residential, commercial, and industrial application

• Incandescent: Offerings based on the traditional lighting technology; emits a warm quality of light. Preferred for specific aesthetic and decorative applications

• Others: Comprises fluorescent, halogen, and other specialty lighting products. Caters to niche markets and specific lighting needs

By Application

The global market, based on application, can be divided into

• Residential: There is a high demand for lighting in houses and apartments. Used for general lighting, task lighting, and decorative purposes

• Commercial: There is increasing use of lighting in offices, retail spaces, and hospitality sectors. Supports operations with efficient and customizable lighting solutions

• Industrial: Includes lighting for factories, warehouses, and outdoor spaces. Used for safety, productivity, and energy efficiency in industrial settings

DRIVING FACTORS

"Increasing Focus on Energy Efficiency and Sustainable Solutions to Boost the Market"

The major drivers for lighting market growth are growing focus on energy efficiency and sustainable solutions around the world. The focus of the majority of consumers and businesses these days is on finding means to reduce energy consumption and minimize their environmental impact. As the demand for energy-efficient solutions grows, the demand for bulbs and luminaires utilizing advanced technologies like LEDs rises. These products possess huge energy savings and very long lives, compared to traditional lighting, which can be very appealing to users who have a high eco-consciousness.

"Increasing Adoption of Smart Homes and Commercial Buildings will Drive Demand in the Market"

Another driver of the global lighting market is the rise in the trend of smart homes and commercial buildings across the globe. Smart lighting systems equipped with remarkable features and connectivity attracts people interested in convenience and the automation of systems. All of these conveniences coupled with the prospects of controlling lighting remotely and integrating with other devices in smart homes, contribute to the upsurge of the market, as consumers are looking for advanced and effective solutions to light houses and businesses.

RESTRAINING FACTORS

"High Initial Costs and Obliviousness to Limit Market Growth Potentials"

One of the significant restraining factors in the global lighting market is—especially in high-end solutions like LED, OLED, and advanced lighting—the cost of purchase and limited awareness regarding the product. These energy-efficient and smart-lighting solutions help save energy in the long term, but the related up-front costs tend to be high compared with traditional lighting systems. Further, some consumers may not even be aware of or not very aware of the benefits and functionalities brought about by contemporary light-working technologies. This may bring in slower adoption rates and anneal market growth in some ways. However, consumer education efforts and cost reductions due to technological advancement do not ever seem to stop being made in this aspect to curb this restraining factor and improve the penetration of advanced lighting products in the market.

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INSIGHTS REGIONAL MARKET ON LIGHTING

The market is majorly divided into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"Asia Pacific Region To Dominant Market Attributed to the Presence of a Large Consumer Base"

Asia Pacific has been at the top among all the regions in the global lighting market share. The factor attributed to the dominance of the region is a colossal population and rapid urbanization, which creates significant demand for new lighting solutions within the area. Easy, convenient, and low-cost energy-efficient and smart lighting products extend a low-cost option for both households and businesses when urban areas expand here, and infrastructure projects are on rise. Additionally, increasing the availability of a variety of lighting products and growing awareness about saving energy has gone well with the consumers in question. Here again, e-commerce, coupled with a rise in disposable incomes, made lighting products more accessible to people in Asia Pacific, thereby increasing the region's share of dominance in the global market.

KEY INDUSTRY PLAYERS

"Key Industry Players Positioning the Market in the Light of Innovation and Market Expansion"

Lighting market key players are significant in the market positioning towards the innovation with the enabled consumers' preference. These major lighting players have well-established distribution networks, while online platforms further offer consumers convenience and extensive access to vast varieties of lighting solutions. Having strong brand names and global presence will go a long way toward ensuring good relationships with these consumers, increasing their confidence and attachment to product use. Besides, such giants in the industry commit huge investments to research and development, which helps them bring innovative designs, materials, and smart features into the lighting products in order to cater to changing consumer needs and preferences. The collective endeavours by the market giants shape the competition map and the eventful journey ahead for the marketplace.

LIST OF MARKET PLAYERS PROFILED

• Philips Lighting (Netherlands)
• General Electric Company (U.S)
• Osram Licht AG (Germany)
• Cree, Inc. (U.S)
• Acuity Brands, Inc. (U.S)
• Eaton Corporation PLC (Ireland)
• Panasonic Corporation (Japan)
• Schneider Electric SE (France)
• Hubbell Incorporated (U.S)
• Zumtobel Group AG (Austria)

INDUSTRIAL DEVELOPMENT

October 2023: Philips Lighting Launches New Line of Smart LED Bulbs. Philips Lighting launched a new range of smart lighting with light-emitting diode bulbs that are remotely controllable, can be automated, and are voice-activated. These innovative products articulate superior energy efficiency and user convenience in line with the Philips motto to be in the fore and fulfil consumer needs with high-quality, innovative lighting solutions. The launch has been indicative of the enlarged portfolio and focus of the company to retain industry leadership in smart lighting technology.

REPORT COVERAGE

The study provides a detailed SWOT analysis and views on the development likely to take place in the future. It identifies drivers responsible for boosting the growth of the market by applying a fine-grain analysis in a vast range of market categories and applications to outline the direction this market will take over the ensuing couple of years. This report takes into consideration the current trends of the past and allows insight into the holistic components of the market and points out areas of possible growth.

The report concentrates on segmentation within markets, and the balance across qualitative and quantitative research has been kept. In this report, the impact of financial and strategic perspectives on the market scenario is also analysed. The data has been presented with national and regional analysis of the leverage balancing the leading forces of demand and supply of the market that shapes the contours of the market under consideration. The competitive landscape includes a granular market share analysis of significant competitors. The report includes some innovative research techniques and player strategies geared toward a forecast period. In total, all of this information presents business insights about market dynamics in a formal and understandable way.