Lighting Market Size, Share & Industry Analysis, By Lighting Type (LED, CFL, LFL, HIDs, Halogen, and Incandescent), By Application (General Lighting, Automotive Lighting, Backlighting, and Others), By End User (Residential, Commercial, and Industrial), and Regional Forecast, 2024-2032

The global lighting market size was valued at USD 139.79 billion in 2023. The market is projected to grow from USD 154.27 billion in 2024 to USD 367.88 billion by 2032, exhibiting a CAGR of 11.5% during the forecast period.

Light plays an important role in every sector. The applications of light in activities, such as interior designing, photography, and other uses, are rising with the increase in population. Numerous scientists have indicated the usage of LEDs in growing plants through practical evidence. Demand for LED light plays an important role in plant growth and development, as it converts electricity into light by using the properties of metals, thereby delivering white light. Governments in several countries across the world are focusing on implementing regulations on energy-efficient products.

According to the European Commission, lights account for 15% - 18% of electricity consumption, globally. Furthermore, over the past few decades, the industry has witnessed the integration of concepts such as artificial intelligence and the Internet of Things (IoT). The use of these concepts has allowed light manufacturing companies to develop innovative products.

The demand has risen in developing countries owing to the increasing population, climate change, and resource scarcity. Governments in developing countries such as India and China are focused on developing new houses for homeless people, which, in turn, is driving the lights market growth in the region. Moreover, companies in this sector are more inclined toward producing and selling lights (LEDS and CFLs) at minimum rates, so that people can afford and use them for a long period.

The COVID-19 pandemic had a slight impact on the market growth due to the nationwide lockdowns and shutdown operations in the commercial and retail sectors. However, lack of availability of raw materials for manufacturing light casings, chips, and other factors affected the supply and demand for the lights.

• For instance, according to a survey conducted by the Lighting Industry Association (LIA) during the lockdown period, 89% of LIA’s members reported that their business remained open and recovered 95% of their sales.

The demand remained constant or stagnant during the pandemic owing to the growing adoption of smart lights primarily in the residential and commercial sectors. However, the market is anticipated to witness moderate growth in the coming years as users in developed and developing nations are adopting smart technology, which is resulting in saving cost, time, and extra investments.

Lighting Market Trends

Rising Adoption of Solar in Developing and Under-Developing Nations to Aid Market Growth

The off-grid solar sector is growing significantly, as it is more energy efficient and provides Pay-As-You-Go (PAYGO) enabled products. Since the past few years, the application of LEDs in the solar system has increased dramatically with a potential to serve millions of users around the world. According to a report published by the Lights Global (a program initiated by the World Bank), in 2020, the global off-grid solar sector market size is USD 1.75 billion with 420 million users. Moreover, off-grid solar has a potential of serving 1.8 billion people and 70 million farmers, globally. The report also states, currently 840 million people do not have access to electricity, which is affecting the growth of diverse markets across the globe. Thus, the adoption of solar lights for energy efficient lighting systems that reduce cost and save time and investment is set to be a leading lighting market trend during the forecast period.

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Lighting Market Growth Factors

Demand for Artificial Lightings in the Construction Industry is Driving Market Growth

The rise of the construction industry has opened up a massive potential to drive the market growth. Globally rising investments and home infrastructure developments for the homeless and middle income groups that require complete electric and efficient lighting solutions are the prime market drivers. Further, the construction industry is growing significantly in developing regions such as Asia Pacific, Latin America, and the Middle East and Africa owing to rising investments focused on affordable housing.

In addition, the rising demand for artificial light supports the market as it allows workers to complete the task on time and is used for safety purposes that can help identify the danger and highlight the area where the work is in process. Moreover, luminaire and light control systems are predominantly driven by new installations. Besides this, the luminaire and light control systems market is directly linked with the growing construction industry and the GDP of each country.

RESTRAINING FACTORS

Constraints in Setting up Newer Manufacturing Hubs is Hindering the Market Growth

Investors are facing issues while setting up newer light manufacturing hubs in several countries, mainly due to the strict government policies which include the rules and regulations related to environmental actions. There are several other challenges that investors or manufacturers face before setting up a factory, such as high capital costs, high investments in the R&D sector, inefficient supply of raw materials, logistics inefficiency, and lack of availability of advanced manufacturing equipment. These factors are restraining the growth of this market in developing countries. The increasing adoption of products in diverse applications is compelling governments to work on the policies associated with business operations in their respective countries. The time required to set up newer manufacturing hubs will hamper the growth of the market in the coming years.

Lighting Market Segmentation Analysis

By Lighting Type Analysis

LED Segment is Projected to Grow at the Highest CAGR due to Low Cost

Based on lighting type, the market is segmented into LED, CFL, LFL, HID, halogen, and incandescent. The LED segment is expected to grow at a highest CAGR over the forecast period. The growth of this segment is attributable to increasing applications, low costs, and durability of LEDS. LEDs offer brighter light with less consumption of electricity.

Several manufacturers have shifted from CFLs to LEDs over the past decade. The price of LEDs is also low as compared to other lights owing to their low maintenance cost and easily manageable fitting processes.

By Application Analysis

General Lighting Segment to Dominate the Lights Industry Owing to Surge in Construction Projects

On the basis of application, the market is divided into general lighting, automotive lighting, backlighting, and others. The general lighting segment accounts for almost 80% of the total light industry due to increasing residential and commercial construction projects, which increases the use of these systems. This is followed by the automotive light segment in the market. In the automotive sector, car manufacturing companies are focused on deploying LEDs and halogens in headlights for providing better visual quality to the driver.

Therefore, the adoption of innovative lights technology in the automotive sector is driving the growth of the automotive lighting segment.

By End User Analysis

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Residential Segment is Expected to Hold the Largest Market Share Owing to the Adoption of Smart LED Lights

By end user, the market is classified into residential, commercial, and industrial. The residential segment is anticipated to dominate the market, owing to increasing demand for new products at regular intervals. However, light manufacturing companies are more focused on developing new LEDs that consume less electricity and provide maximum output with long durability.

The commercial segment is likely to hold the second largest market share followed by the industrial segment. Increasing number of commercial buildings, public infrastructure, and others is influencing the growth rate of the commercial segment.

REGIONAL INSIGHTS

Globally, the lighting market has been growing exponentially owing to rising demand for Light Emitting Diode (LED) lights across various regions, including North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

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The market in Asia Pacific is expected to dominate in the lighting market share in the coming years. There are multiple registered and unregistered market key players that are involved in this sector. In Asia Pacific, China will hold the largest market share owing to the presence of several large scale vendors. China has established itself as a large-scale exporter of products to other countries over the past few years. The rapidly increasing population is another factor that has contributed to the growth of the regional market. Therefore, Asia Pacific is projected to dominate the market in the coming years, followed by Europe and North America.

In Asia Pacific, China holds the leading position in the market. It is one of the world's largest producers of lights products, including various types of bulbs, fixtures, and LED lights. China has developed a robust manufacturing infrastructure with advanced technologies and efficient production processes. The country has a large number of factories specializing in light production, which has helped it become a global manufacturing hub. Furthermore, rapid urbanization and increased infrastructure development in China have led to a surge in domestic demand for light products. The country's expanding middle class and increasing consumer spending power have also contributed to the growth of the lights industry.

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The North America market is anticipated to grow moderately. This is attributable to the presence of several large-scale companies in the region. The market in this region is fragmented as compared to other regions. Increasing urbanization, adoption of innovative technologies, energy-efficient products, and growing and aging population are the major factors influencing the growth of the market in North America.

The market In Europe is expected to grow significantly with the adoption of new technologies such as intelligent systems and human centric. For instance, to provide energy-efficient products to consumers, the European Commission has published new eco-design rules for the industry in December 2019. Furthermore, renovation of cities into smart cities is boosting the LED market in the region.

In the Middle East & Africa, governments in Saudi Arabia, the UAE, and Qatar are working continuously to improve their infrastructure by making huge investments. The favorable policies of these governments are allowing light manufacturing companies to offer their products with reasonable pricing and durability to the customers.

Furthermore, Latin America is expected to grow moderately owing to the slow adoption of technologies in the region. Moreover, there are less light manufacturing companies present in Latin America, which is also affecting the market growth in the region.

KEY INDUSTRY PLAYERS 

Koninklijke Philips N.V., Panasonic Corporation, and Cree, Inc. are More Focused on Increasing their Regional Presence

GE Lighting holds the largest market share in the global lights industry, followed by Koninklijke Philips N.V. and Cree, Inc. The production of various lights products with innovative technology is the primary reason behind holding the large market share among the other light manufacturing companies. Furthermore, Panasonic Corporation, OSRAM Licht SE, and Schneider Electric SE are working continuously on developing new products. Also, light manufacturing companies are investing more in their research and development departments to develop innovative products that consume less electricity and save costs.

List of Top Lighting Companies:

• GE Lighting (U.S.)


• Koninklijke Philips N.V. (Netherlands)


• Panasonic Corporation (Japan)


• OSRAM Licht AG (Germany)


• Schneider Electric SE (France)


• Cree, Inc. (U.S.)


• CITIZEN ELECTRONICS CO., LTD. (Japan)


• Lumerica (Canada)


• Havells India Ltd. (India)


• LEDtronics, Inc. (U.S.)


• Patriot LED (U.S.)


• Acuity Brands, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• November 2023: Thorn lighting, a prominent interior and decorative lighting manufacturer, introduced its new experience store in Ishlington Business Design Center, London. The center would showcase the company’s latest innovation products and solutions.


• November 2023: Signify, a global leader in lighting solutions, announced the launch of its new Philips D2C website. The groundbreaking move promises to revolutionize consumer experience. The innovative lighting solutions on the website include Philips, Wi-Fi products, and others.


• November 2022: Wipro Lighting, a leading light products manufacturer, announced an India exclusive partnership with Israel based Aura air. The arrangement would provide Aura air exclusive access for the products in the country.


• July 2023: ams OSRAM AG, a prominent lighting solution manufacturer, launched its new series of intelligent dynamic RGB lights for the automotive sector. The intelligent RGB uses open system protocol for communicating to create dynamic color and motion effects.

REPORT COVERAGE

The report provides a detailed analysis of the global market and focuses on key aspects such as leading companies, product/service types, and leading end-use applications of the product. Besides this, the report offers insights into the market trends and highlights the key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the market growth in recent years.

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Report Scope and Segmentation