Architectural Led Products Market

Global Market Study on Architectural LED Products: Push toward Energy-efficient Lighting Systems Assisting Market Expansion

About the Report

Rising demand for energy-efficient lighting products is expected to drive sales of architectural LED products over the coming years, with demand from both, the commercial as well as residential sectors expected to accelerate. Rapid infrastructure development and construction activities across different parts of the world are also expected to play a key role in positively impacting sales growth in the architectural LED products market.

In its new study, market research and consulting firm Persistence Market Research (PMR) offers detail insights related to factors and components driving the sales of architectural LED products, which are especially high in the commercial sector. The study tracks the global architectural LED products market in 20+ high-growth markets, which points toward Asia Pacific as a high-demand region, along with analyzing the impact of novel coronavirus on the parent industry in general, and architectural LED products in specific.

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Companies

  • Cree, Inc.
  • GE Lighting LLC
  • Philips Lumiled Lighting Company
  • OSRAM Light AG
  • Samsung Groups
  • Epistar corporation
  • Toshiba Lighting and Technology Corporation
  • Verbatim Ltd
  • Cooper Industries Plc
  • Galaxia
  • Other Players (As Requested)

Will Future Architectural LED Product Sales be Higher than Previous Years?

As per recent statistics of US EIA’s (Energy Information Administration) recent International Energy Statistics, global electricity consumption is increasing at a rapid pace and faster than the world population. This has resulted in an increase in the average amount of electricity consumed per person. Growing consumption of electricity in both, residential and commercial sectors of developing countries has largely impacted global consumption growth. Thus, the challenges imposed by the rapid increase in global electricity consumption has helped energy-efficient lighting products gain popularity. Growing consumption of electricity is one of the key factors that is driving adoption of architectural LED products. According to Persistence Market Research’s analysis, architectural LED products sales are projected to expand at nearly 13% CAGR during the forecast years of 2021 to 2031.

Substantial investments are being made in research & development with the aim to offer new, advanced, and innovative products. Besides this, leading participants and manufacturers are aggressively focused on developing their current offerings in the industry. These efforts, on the part of suppliers, are projected to facilitate steady growth in the sales of architectural LED products over the coming years.

Also, efforts undertaken by industry stakeholders to promote market reach point out to a positive growth trend in sales. Further, consumer adoption of luxury lifestyle is projected to reflect steady growth in demand for architectural LED products.

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Will Government Initiatives to Promote Energy-efficient Products Impact LED Demand?

As increasing consumption of electricity is turning into a vital issue, regional governments and concerned authorities are undertaking numerous efforts to control energy consumption in both, households and the commercial sector. The US Department of Energy, which actively addresses environmental, energy, and nuclear challenges, is one such authority that is aggressively promoting the ideology of efficient consumption. The US Department of Energy has published numerous resources related to strategic energy management and continuous improvement, energy-efficient resource standards, industry coalitions, and outreach, etc. All these efforts bode well for increasing the sales of architectural LED products in future.

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What is the Commercial Potential of Smart Lighting Technology?

Increasing desire to live a luxurious lifestyle in a space with smart architectural solutions is likely to play a key role in driving the sales of smart lighting technology. Preference for controllable architectural lighting solution is increasing day by day, as controllable solutions provide satisfaction in addition to benefits such as flexibility of space, reduced energy consumption, etc.

As these smart architectural LED products facilitate hyper convenience on the part of operation and handling, they are highly preferred over other generic LED products that are on offer. This is one of the major reasons why smart lighting technology has attracted consumer attention off late.

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Why is LED Product-related R&D Key to Market Consolidation?

Research & development is looked at as a key method in creating a point of difference between a company’s and its competitor’s offerings. Some of the key participants in the industry are investing heavily in research & development activities with an aim to gain a competitive edge over other players.

For instance, Philips is one such brand that is investing heavily in the development of breakthrough innovations in smart lighting solutions, with an aim to serve consumers with better products, and build up brand reputation in the industry. As companies operating across different regions continue to invest and encourage research & development, growth in sales is bound to take place in the near and long term.

What is the Regulatory Impact on Global LED Product Sales?

According to statistics of the International Energy Agency, production of electricity has rapidly grown each year continuously since 1974, except during the global financial crisis 2008-09 when it experienced a decline. In 2018, the share of non-OECD countries reached 58.0% of total electricity generated. Thus, rapidly increasing electricity consumption has raised numerous environmental challenges, which has further encouraged respective government authorities and agencies to publish guidelines and regulations related to energy-efficient standards.

The US Environmental Protection Agency, along with the US Department of Energy, runs the ‘Energy Star’ program. Under this program, the department offers ‘Energy Star Certification’ if a product meets stringent energy-efficiency guidelines set by the agency.

As electricity consumption is continuously rising, other regions such as Europe also heavily regulate lighting products to combat increasing environmental concerns. In Europe, LED products such as LED light bulbs, LED strips, LED lamps, etc., are highly regulated by the European Union to ensure their safety and energy standards. Labelling (CE Mark) and packaging are also mandatorily required to be followed as per standards.

Non-OECD countries are also taking significant efforts by framing regulatory policies to conserve energy. For instance, the Government of India has introduced guidelines and regulations under the Energy Conservation Act 2001, which requires consumers to ensure less electricity consumption. Development of such regulatory framework has further encouraged adoption of energy-efficient lighting products, positively impacting growth in the sales of architectural LED products.

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Country-wise Insights

How Big is the Opportunity in the U.S.?

North America is expected to remain one of the most lucrative markets through 2031. One of the most prominent factors that is supporting regional growth is rising demand for smart architectural lighting solutions with additional energy-efficient benefits. Adoption of luxury lifestyle has further encouraged people to bring in smart solutions into their daily lives.

The U.S. is a prominent markets for lighting solutions. High penetration of m-Commerce and e-Commerce has further played a significant role in facilitating market reach and adoption of architectural LED products across the country.

Besides this, aggressive initiatives undertaken by the US Department of Energy for promoting efficient-energy products in the commercial and household sectors are further projected to encourage adoption of conventional and solar LED products such as strips and lamps for architectural uses. North America currently holds close to 16% of the overall market share.

Do Architectural LED Lighting Sales Need Revival in Brazil?

Escalating infrastructure development activities in Brazil are expected to open up new future sales opportunities for companies. The regional government has developed favorable national policies to attract foreign and domestic investments for infrastructure development. The country is focused on attracting both, private as well as public investments to achieve its development goals.

Over the past five years, a total of US$ 300-400 Mn has been invested in infrastructure development. Out of these total investments toward infrastructure, private investments account for a share of approximately 6%. Thus, efforts on the part of the government and other concerned authorities & organizations to promote infrastructure development are projected to open up new opportunities in this regional market.

Why Innovation is Key to Succeed in the German Market?

The ability to come up with fresh offerings and innovation is always perceived as an important factor for the success of any business. The influx of new offerings or fresh innovations in architectural LED products often helps gain a competitive advantage in such a competitive environment. Innovation also helps create a point of difference among the offerings in the national market.

Besides this, increasing spending of households on furnishing and regular maintenance is further expected to drive sales in the country during the forecast years. According to statistics of the European Commission, in the year 2016, the European Union spent approximately 5.5% of their total consumption expenditure on household equipment, furnishing, and routine household maintenance, which accounted for approximately 3% of GDP of the European Union. As per this analysis, Germany was one of the prominent countries in the European Union that spent maximum on household maintenance. Thus, increase in spending is another indicator that points toward growth in demand for architectural LED products in the country over the coming years.

Sales in India Tied Closely to the ‘Saving Culture’ Imbibed in Indian Tradition

The culture of saving is traditionally imbibed in the lifestyle of Indian citizens. Since the past many years, India has been known as a nation of savers. Indian citizens successfully manage to spend less than their income. This culture has encouraged the population to save on their daily expenditures, whether it is electricity consumption or other day-to-day expenditure.

Prevalence of this attitude has further encouraged Indians to opt those products in their day-to-day life that guarantee additional savings. This is one of the prominent factors behind the rapid adoption of architectural LED products over other conventional products.

Furthermore, rising concerns of electricity consumption cost have further encouraged the adoption of LED lightings in residential as well as private & public commercial sectors, as efficient-energy products ultimately reduce personal expenses on electricity consumption.

Why is there Growing Demand for Solar Products in the Chinese Commercial Sector?

The Chinese government extensively supports the idea of converting solar energy into electricity. High awareness regarding renewable energy in the commercial sector has driven the adoption of solar LED products in the region. Besides, the national government has also extensively adopted solar LED products in public construction and infrastructure development activities.

High demand for solar LED products in the country has facilitated a rise in penetration of solar LED suppliers in the market. Thus, stable demand for solar LED products is expected to open up sales opportunities for players operating in the industry.

Category-wise Insights

Which Architectural LED Product Category is Expected to Reflect High Growth?

By product type, conventional LED products still dominate in terms of sales over solar architectural LED products at around 90% share predicted for 2031. However, growing consciousness of using energy efficient products and government initiatives to promote energy conservation are expected to positively drive growth and adoption of architectural LED products over the coming years.

However, as per our analysis, solar architectural LED products are expected to register prominent growth in the architectural LED products space in comparison to conventional products. Factors such as increasing consciousness regarding renewable energy and sustainability are expected to drive adoption of solar products in future.

Why is Demand for Architectural LED Products More in the Commercial Sector?

Expanding use of architectural LED products across different sectors such as retail, IT and telecommunications, banking, financial services and insurance, healthcare, media and entertainment, and others is one of the prominent factors for higher demand for LED products in the commercial sector as compared to the residential sector. Besides this, as the concept of sustainability is gaining traction, many companies have devised strategies to achieve maximum sustainability in their operations. Achieving maximum level of sustainability also helps companies gain brand reputation in the industry. This is why the commercial sector is increasingly focused on achieving their sustainable goals by turning to efficient-energy products. Thus, the specular shift from traditional lighting solutions to energy-efficient lighting products has played a key role in fueling demand from the commercial sector, which is more than three-fourth of the overall market share.

Opportunities Abound in Non-OECD Countries

Many of non-OECD countries are classified as low- and middle-income countries, and are currently highly focused on achieving their economic and infrastructure development goals. Countries such as India, Malaysia, South Africa, Brazil, Indonesia, Chile, Thailand, Vietnam, etc., are few of the prominent countries that are currently experiencing heavy investments in private and public sector developments.

For instance, as per statistics of the India Brand Equity Foundation, established by the Departments of Commerce, Ministry of Commerce and Industry, and Government of India, the country plans to invest US$ 1.4 trillion during 2019-2025 for infrastructure development in the category of energy, urban and railways, roads, etc. This is one of the indicators that points toward rising demand opportunities for architectural LED products in these countries over the following years. Players operating in the architectural LED products market can capitalize on increasing demand by enhancing their business penetration in these prominent non-OECD countries.

Competitive Landscape

With increasing number of consumers and competitors for LED lighting products, players are focused on driving innovation and improving payback across all LED product segments. Companies are also undertaking constant efforts in building brand value in both, commercial and well as consumer categories. Besides this, players have also commonly adopted the acquisition strategy with an aim to align themselves with the changing industry environment, with a vision to secure long-term profitability. One such brand is Philips; in the year 2018, Philips Lighting acquired Shenzhen LightMagic Technologies, Co. Ltd., an urban Chinese company engaged in manufacturing and selling luminaires and control systems. This strategic decision has enabled the brand to capitalize on large and fast-growing urban lighting demand for architectural LED products in East Asia. This acquisition has helped the brand expand its portfolio to include luminaires and control systems.

Apart from this, strategic collaboration with online retailers and suppliers to provide LED products has further facilitated easy market reach, directly contributing to growing sales in different regions across world.

Through these developments and strategic decisions, companies are aiming to gain a competitive advantage in different regional markets. A slew of new launches and products developments are likely over the following years, which are further expected to reshape consumer preferences and buying decisions.

Some of the leading companies operating in the architectural LED products market are:

  • GE Lighting, LLC.
  • OSRAM Light AG
  • SAMSUNG Group
  • Cooper Industries Plc
  • Verbatim Ltd
  • Galaxia Electronics Co., Ltd.
  • Philips Lumiled Lighting Company LLC
  • Cree, Inc.
  • Epistar Corporation
  • Toshiba Lighting and Technology Corporation

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Architectural LED Products Market: Scope of the Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for Value and Units for Volume

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa

 

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Poland, Russia, BENELUX, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Northern Africa, and South Africa

Key Segments Covered

Product Type, End User, Application, and Region

Key Companies Profiled

  • GE Lighting, LLC.
  • OSRAM Light AG
  • SAMSUNG Group
  • Cooper Industries Plc
  • Verbatim Ltd
  • Galaxia Electronics Co., Ltd.
  • Philips Lumiled Lighting Company LLC
  • Cree, Inc.
  • Epistar Corporation
  • Toshiba Lighting and Technology Corporation

 

Report Coverage

Market Forecasts, Brand Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Architectural LED Products Market by Category

Product

  • Solar
  • Conventional
    • Strip & Linear
    • Lamps

End User

  • Residential
  • Commercial
    • Retail
    • IT & Telecommunications
    • Banking, Financial Services and Insurance
    • Media & Entertainment
    • Healthcare
    • Others

Application

  • Cove Lighting
  • Wall Washers
  • In-ground
  • Backlight
  • Others

Region

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Middle East and Africa (MEA)
  • Oceania

Key Questions Answered in the Report

Q1. Which is the most lucrative market for architectural LED products?

The U.S. currently leads the global  architectural LED products market. Sales in the U.S. are further expected to register steady growth during the forecast period.

Q2. Which is the top-selling architectural LED product?

Demand for conventional architectural LED products is currently high in the market. This demand for conventional products is likely to dominate solar LED products through 2031.

Q3. Which conventional sub-product type dominates the market?

In case of conventional products, strips and linear account for a significant market share. Demand for strip and linear conventional architectural LED products is likely to reflect steady growth during the forecast period.

Q4. Who are some of the leading companies in this space?

Some of the leading companies offering architectural LED products are GE Lighting LLC, Samsung Group, Philips Lumiled Lighting Company LLC, Cree, Inc., Epistar Corporation, Toshiba Lighting, Technology Corporation, etc.

Q5. Which LED application type is highly preferred by consumers?

Wall washers, cove lighting, and in-ground are few of the lighting applications that are highly preferred by consumers over other application types.

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Is this research conducted by Persistence Market Research?

Yes, the research has been conducted by expert analysts at Persistence Market Research, through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst.

What research methodology is followed by Persistence Market Research?

The company follows a methodology that encompasses demand-side assessment of the market, and triangulates the same through supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions. Request a detailed methodology.

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What are the sources of secondary research?

Persistence Market Research conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request

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