LED lighting has emerged as an efficient lighting solution with numerous advantages over traditional incandescent light bulbs. LED lights consume significantly less energy and last longer than compact fluorescent lamps or incandescent bulbs. With energy savings of over 75%, LED lighting helps reduce carbon footprint making it an eco-friendly choice for commercial and residential applications. LED lights also emit less heat and are safer to operate. Their compact size allows greater flexibility in terms of design and placement. LED light bulbs are available in various forms including bulbs, tubes and downlights suitable for both indoor and outdoor lighting solutions. No fragility concerns exist with LEDs as they do not have glass casings and filaments unlike traditional bulbs.
The global LED Lighting Market is estimated to be valued at US$ 730.4 Bn in 2024 and is expected to exhibit a CAGR of 4.3% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Smart LED lighting is gaining traction as one of the key trends in the market. Smart LED lights can communicate through standards like ZigBee, Z-Wave, Bluetooth or use Wi-Fi as a wireless communication protocol. They can be controlled remotely through smartphones, apps, sensors or voice assistants like Alexa. Smart LED lights allow scheduling, dimming and turning on/off lights as per requirement without physical access. This offers convenience and energy savings. Their connectivity with apps and sensors enables various smart home automation applications. As the market for connected homes experiences rapid growth supported by advancements in IoT, sales of smart LED lights are estimated to increase substantially over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate in the LED lighting market due to high investment requirement for technology development and production facilities. However, low barriers to entry are luring new players.
Bargaining power of buyers: The bargaining power of buyers is high owing to the availability of alternative lighting solutions and price sensitivity of buyers. Buyers can easily switch to substitutes if prices rise considerably.
Bargaining power of suppliers: The bargaining power of suppliers is moderate due to the presence of multiple suppliers for LED chips, drivers, and other electronic components. Suppliers cannot influence prices significantly but can negotiate on the quantity supplied.
Threat of new substitutes: The threat of substitutes is moderate. Alternatives like CFL and OLED provide competition but LEDs have an edge in terms of energy efficiency and lifespan. Emerging technologies can pose a threat over the long term.
Competitive rivalry: The competitive rivalry is high characterized by rapid technological development, pricing wars, and product differentiation. Players compete based on energy efficiency, design, cost, and service.
Key Takeaways
The Global LED Lighting Market Size is expected to witness high growth. The global LED Lighting Market is estimated to be valued at US$ 730.4 Bn in 2024 and is expected to exhibit a CAGR of 4.3% over the forecast period 2024 to 2031.
The Asia Pacific region currently dominates the market and is expected to grow at the fastest rate during the forecast period due to rapid industrialization and infrastructure development in China, India, and other developing nations.
Key players related content comprised Key players operating in the LED lighting market are HP Inc., Dell Technologies Inc., Lenovo Group Limited, Acer Inc., Apple Inc. The key players focus on new product launches and enhancing their existing product portfolio to expand their customer reach. For instance, in 2023, HP Inc. launched its latest ProBookx360 11 G9 Education Edition laptop to provide pupils and teachers with a secure and manageable device.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
