LED Market

The global led market was valued at $78.69 billion in 2020, and is projected to reach $192.68 billion by 2030, growing at a CAGR of 8.2% from 2021 to 2030. 

A light-emitting diode (LED) is a semiconductor light source that converts electrical energy directly into light energy. These devices are often used in lamps as replacement of incandescent light sources. LED lighting is expected to be one of the most energy-efficient and rapidly developing lighting technology in the global market. LED lights operate for a longer duration, are durable in nature, and offer better lighting quality compared to the traditional lighting technologies.

The industrial segment has been negatively impacted by the COVID-19 pandemic outbreak.

LED is expected to take over the conventional Compact Fluorescent Lamp (CFL) and Cold Cathode Fluorescent Lamp (CCFL) lighting market due to advanced features. Moreover, it is a cost-effective solution for all lighting as well as other applications, including backlighting in large screen displays and  non-backlight displays (OLED). Apart from the aforementioned cost benefit, the initial cost of LED lighting is very high and this restricts its initial acceptance. However, due to longer lifespan of LEDs, the overall cost of the same is found to be very low in comparison to CFLs. Consumers will gain awareness about the benefits of longer lifespan of LED lamps and would increase adoption of LED products such as LED lamps and ceiling lights. Growth in display backlighting applications, decrease in cost of LED lamps, longer life span, and high efficacy of LED are key factors that boost the LED market growth.

The production of LED products such as ceiling lights and led fixtures involves the implementation of variety of technologies. Chips and components are the basic materials required to assemble and manufacture the final lamp. These are the different steps of LED value chain. Some industries  manufacture LED chips and components while some are involved in the production of lamps and fixtures. Furthermore, others are expected to be involved in all the steps to deliver the final product to the consumers.

Factors that drive the growth of the LED lighting market are  less energy requirement which leads to financial savings, environment-friendly, owing to minimum use of mercury, and less flickering. Furthermore, lower production cost of LED light is anticipated to provide lucrative LED Market Opportunity.

There are various factors that significantly affect the LED market. Factors such as increase in demand for cost effective and energy-saving LED lighting, government initiatives toward LED adoption, and surge in need to replace traditional lighting system drive the growth of the market. However, high initial cost of LED lighting technology and presence of voltage sensitivity & temperature dependence hamper the market growth. Furthermore, increase in adoption of smart lighting system and LED display backlighting is expected to offer lucrative growth opportunities toward the LED market outlook.

SEGMENT OVERVIEW

The LED market size is segmented on the basis product, application, end user, and region. On the basis of product, the market is categorized into LED lamps and LED fixtures. Depending on application, it is classified into indoor lighting and outdoor lighting. According to end user, it is categorized into residential, industrial, commercial, and others. Region wise, the global LED market trends analyzed across North America, Europe, Asia–Pacific, and LAMEA.

TOP IMPACTING FACTORS

The notable factors positively affecting the global LED market include increase in demand for cost-effective & energy-saving LED lighting, government initiatives toward LED adoption, and surge in need to replace traditional lighting system are expected to fuel the market growth. However, high initial cost of LED lighting system and voltage sensitivity & temperature dependence are expected to hinder the market growth.  

COMPETITIVE ANALYSIS

The key players profiled in the report include Cree, Inc., Everlight Electronics Co., Ltd., General Electric Company, LG Innotek Co., Ltd., Lumens Co., Ltd., Lumileds Holding B.V., Nichia Corporation, Koninklijke Philips N.V., Osram Licht AG, and Seoul Semiconductor Co. Ltd. These key players have adopted strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations to enhance their position in the LED industry.

COVID-19 IMPACT ANALYSIS

The COVID-19 pandemic significantly impacted global economies, resulting in workforce & travel restrictions, supply chain & production disruptions, and reduced demand & spending across many sectors. Sudden decline in infrastructure development and installation projects is expected to hamper the LED industry growth for residential, commercial, and industrial verticals.

The LED market revenue experienced decline in its growth rate, owing to delayed construction projects. However, the demand for UV LED from the medical industry accelerated during the pandemic. Furthermore, market players invested in R&D of smart lighting system, owing to new government initiatives across the globe. Therefore, the LED market size was anticipated to gain momentum by the end of 2021.

Gradual production by Original Equipment Manufacturers (OEMs) and reduction in demand for lighting system & other electronics devices have hampered the growth of LED market. Components and materials shortage significantly impacted the global supply chain. In addition, reductions in various capital budgets and delay in planned projects in various industries hampered the global economy.

Key Benefits For Stakeholders

• This study comprises analytical depiction of the global LED market size along with the current trends and future estimations to depict the imminent investment pockets.
• The overall LED market analysis is determined to understand the profitable trends to gain a stronger foothold.
• The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
• The LED market forecast is quantitatively analyzed from 2021 to 2030 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
• The report includes the LED market share of key vendors and market trends.

 LED Market Report Highlights