The latest report by Persistence Market Research titled ‘LED Lighting Market: Global Industry Analysis and Forecast, 2017-2025’ consists of four main parts. The first part is dedicated to explaining the market definitions, market segmentation and acronyms used in the report. In this section of the report, the key definitions in the global LED lighting market are provided, along with an explanation of how Persistence Market Research has segmented the target market. In the subsequent sections of this part of the report, research methodology used to arrive at the indicated market numbers has been clearly indicated. In the second part of the report, the major factors enabling and impacting growth of the global LED lighting market as well as the growth of the parent industry is briefly elaborated. This section of the report includes key growth drivers and the impact of these drivers on the global LED lighting market. Major challenges confronting the global LED lighting market and the impact of these challenges on the market is also mentioned in the report. At the end of the second part, trends, opportunities and recent developments in the global LED lighting market have been included. The third part of the report consists of the key analysis and insights into the global LED lighting market and comprise the bulk of the report. This part consists of information regarding the market size and CAGR – historic, current estimated and forecast – for the next eight years. Y-o-Y growth rate comparison of various segments and sub segments of the global LED lighting market are also presented in this section of the report. In addition, absolute dollar opportunity analysis of each segment of the global LED lighting market is also presented. In the fourth and last part of the report, a competition landscape is included, which presents a dashboard view of the competitive benchmarking, based on relative positioning of the competitors in the global LED lighting market. Besides this valuable information, product offerings of the major competitors operating in the global LED lighting market is also highlighted in this section. The company profiles covers the overview, financials, recent developments, SWOT analysis and a brief business strategy of the main players in the global LED lighting market.
Another distinctive feature of this report is the inclusion of the current scenario of the global LED lighting market that tracks the various phases the market has covered or is yet to cover and the evolution of the global LED lighting market based on phases such as the introductory phase, growth phase, maturity phase and the decline phase. In addition, a detailed product lifecycle stage write up is also given that discusses the various characteristics of the global LED lighting market, which comprise sales perspective, price, product adoption, competitors and also information on manufacturer profit margins. Also, there is one more distinctive feature in the report pertaining to the global LED lighting market value chain analysis. In this part of the report, various stages in LED lighting manufacturing have been elaborated – upstream stage, midstream stage and downstream stage. The value chain analysis has all the manufacturing components broken down minutely and cross reductions across various stages in the value chain are also given.
Persistence Market Research has used multiple resources of information and analysis to estimate the market revenue of the global LED lighting market. In order to give the market value projections till 2025 end, Persistence Market Research analysts have first explored LED lighting solutions by product type, services, end user and application. After this, the analysts have done primary and secondary research to arrive at the stated market figures. The secondary research consists of qualitative data gathering through various articles, journals, blogs, industry association data, company websites and other secondary sources. In primary research, discussions with industry experts were carried out. In the data analysis phase, adoption of LED lighting solutions across various industries was considered, along with value chain analysis. A study of the trends in the parent market and end user industry was also carried out and a forecast was developed. This was verified and validated using the triangulation method. Based on this, market insights were derived on which key findings and recommendations of this report are based.
By Product Type
By End User
LED lighting systems are attractive as they are durable, save energy and last longer
LED lamps are energy efficient, possess a long lifetime and have a service life of 50,000 hours or more. They are rugged as they consist of a solid material and do not contain any filament or tube that is fragile. LED lamps require no warm up period and they light instantly in nanoseconds. They are also environmentally friendly as they consume less energy and do not contain mercury or any other hazardous substances. Due to these desirable properties of LED, they are ideal in situations where lamps are required to be switched on and off frequently and can be easily dimmed. As LED lamps do not wash out colors like fluorescent lamps, they are perfect for displays and retail applications as well. Besides, LED lighting has zero UV emissions and they can also run on low voltage power supply. Due to these distinct advantages of LED lighting, the global market for LED lighting is expanding at a fast pace and LED lighting has the potential to revolutionize the lighting sector.
Persistence Market Research analysis reveals that the global LED lighting market was valued at nearly US$ 37,000 Mn in 2017 and is expected to touch a figure of nearly US$ 126,000 Mn by the year 2025, registering a CAGR of 16.6% and exhibiting an increase of 3.4X in terms of revenue during the forecast period.
Supportive government regulations are fueling the growth of the global LED lighting market
Due to environmental considerations, governments all across the world are recognizing the advantages of LED lighting systems and are insisting on the implementation of specific standards for lighting products and at the same time restricting the use of incandescent lighting products so that energy can be saved and carbon dioxide emissions can be curbed. Besides, the use of LED lighting leads to an overall cutting of operating costs, and this in turn is driving the growth of the global LED lighting market. To emphasize this trend, reference of the Paris Agreement of December 2015 can be sought, in which more than 190 countries committed to carbon emission cuts of 20% by the year 2020. Also, another pertinent example is of the Chinese government, which banned the use of 100W and 60W incandescent bulbs. Also, on similar lines, the European Union has banned the use of all types of traditional incandescent lighting systems.
Lack of awareness regarding modern lighting solutions is hampering the growth of the global LED lighting market
Presently, fluorescent lighting technology products have grabbed a relatively high share of the overall lighting market revenue as compared to LED lighting technology products. This is due to the fact that there is a lack of awareness and understanding about the advantages and benefits of LED lighting systems and products. In addition, there is a surge of low-quality and low-cost lighting products mainly from China that have a low lifespan, and there is a misconception that LED lighting solutions are costlier than incandescent or fuel based lighting, and this is especially true of the developing markets in the Asia Pacific and Latin America. These factors are hampering the growth of the global LED lighting market.
Immense opportunities for LED lighting – commercial viability and green technology initiatives
Looking at the commercial feasibility of LED lighting technology, it is going to be one of the most promising technologies by the year 2020. This forecast is supported by a dramatic price reduction in LED lighting products, which has made them commercially more viable, and hence has given rise to new market opportunities as this new technology tides over conventional lighting technologies. This opportunity creation is expected to further receive a boost by the green revolution in lighting, which is another trend expected to propel the market northward during the forecast period. In addition, the increasing awareness about energy conservation and rural development in emerging economies such as India and South Africa is expected to further boost the growth of the global LED lighting market to a significant extent in the next five to six years.
Global LED lighting market forecast by application
As far as revenue is concerned, the indoor application segment is projected to be the most attractive segment in the global LED lighting market during the assessment period. This segment is anticipated to register high Y-o-Y growth rates during the forecast period and is slated to exhibit a CAGR of 19.3% between 2017 and 2025. The outdoor application segment was valued at nearly US$ 10,300 Mn in 2016 and accounted for 31.5% of the global market revenue share. The outdoor application segment has a high market share due to the fact that a majority of the outdoor applications of lighting are comparatively more exposed to local government decision making and are thus directly influenced by public policy interventions.
Adoption of solar LED lighting in remote areas presents a huge opportunity in the global LED lighting market
Developing countries and regions such as India and Africa, where there are still millions of people off the grid and without electricity, are expected to represent major growth opportunities as the demand for solar LED lighting systems is high due to various ongoing projects related to rural electrification. To emphasize this point, in September 2015, the government of Kenya launched a US$ 1.2 Bn project to deploy LED street lights in Mombasa City. In addition to this, there are a number of villages in developing countries that lack proper electricity infrastructure and in such areas, demand for solar LED lights is quite high. This presents a huge opportunity in the global LED lighting market and brings to fore the true potential of LED lighting systems lighting up remote areas through solar powered LED lights.