The LED rental market involves short-term rental of professional LED lights and video walls for events, stage lighting, and other applications. LED video screens and lighting equipment provide vibrant atmospheres for live performances, product launches, exhibitions, conferences, weddings and other events. They deliver vivid color quality, high resolution, low power consumption and flexibility to be customized as per event theme and venue requirements. The equipment is commonly powered with batteries or portable generators to provide mobility. Growth of MICE industry and rising disposable income have boosted marketing, entertainment and special event spending globally. This has amplified demand for innovative LED solutions from rental companies to enhance audience experience.
The global LED rental market is estimated to be valued at US$ 19 Bn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the primary drivers for LED rental market growth is the rapidly expanding events industry. According to data, the global events industry was valued at over US$ 1 trillion in 2019 and is projected to surpass US$ 1.5 trillion by 2025. Growing preference for unique experiential marketing and special events among corporates is a key factor stimulating this expansion. Additionally, rapid urbanization and increasing disposable income in developing regions is augmenting consumer spending on leisure activities such as concerts, exhibitions and festivals. This vast untapped potential is encouraging LED rental companies to enter emerging markets with innovative product and service offerings.
Segment Analysis
The global LED rental market is divided into four segments based on solution – LED wall, lighting, haze and fog machines, and disco & stage lighting. The LED wall segment held the largest market share of around 30% in 2022 owing to wide usage of video walls and screens at various events, concerts, exhibitions and displays for branding purposes. This segment is expected to remain dominant during the forecast period due to rising adoption of high resolution LED walls for enhanced viewing experience.
PEST Analysis
Political: Governments across regions are implementing stringent regulations regarding use of energy efficient lighting solutions to reduce carbon footprint. Various policies encourage adoption of LED lighting products.
Economic: High energy costs and growing need to optimize energy usage is compelling industries and event organizers to shift towards cost effective and energy saving LED systems. Rental business of LED solutions provides flexibility and lowers initial investment costs.
Social: Rising disposable incomes and growing spending on leisure activities are increasing spending on live entertainment events, outdoor shows and brand promotions. This is propelling demand for premium lighting technologies.
Technological: Advancements in LED technology such as higher brightness, lifespan and lower power consumption are making LED lighting more attractive. Introduction of smart lighting controls and connectivity features are further augmenting adoption.
Key Takeaways
Global LED Rental Market Demand is expected to witness high growth at a CAGR of 5.1% during the forecast period of 2023 to 2030.
Regional analysis: North America accounts for the largest share of around 30% of the global LED rental market owing to strong presence of event management industry in the region. U.S. holds dominant position in North America led by heavy investments in concerts, exhibitions and live entertainment industry. Europe is the second largest market growing at a CAGR of 4.8% during forecast period with major demand coming from U.K. and Germany.
Key players operating in the LED rental market are BASF S.E., Bayer Cropscience AG, FMC Corporation, DowDuPont, Monsanto Company, Nufarm, SinoHarvest Corporation, Syngenta A.G., Sumitomo Chemical, and United Phosphorus. These companies collectively held over 45% share of the global market in 2022. BASF S.E. and Bayer Cropscience AG lead the market owing to their diversified product portfolio and global distribution network.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
