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2020

Industrial LED Market

Industrial LED Market Size, Share, Competitive Landscape and Trend Analysis Report by Product (LED Lamps and LED Fixtures), Application (Indoor Lighting and Outdoor Lighting), and Industry Vertical (Oil & Gas, Mining, Pharmaceutical, Manufacturing, and Others): Global Opportunity Analysis and Industry Forecast, 2019-2026

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Author's: Avinash Savekar and Asavari Patil | Vineet Kumar
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Industrial LED Market Outlook - 2026

The global industrial LED market size was valued at $5.57 billion in 2018, and is projected to reach $20.16 billion by 2026, registering a CAGR of 16.8% from 2019 to 2026. The light emitted by the filament present inside an incandescent light bulb is a result of the electrical energy getting converted into heat energy, which eventually is converted into light energy. 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 a replacement of incandescent light sources.

Lighting consumes approximately 15% of total global power consumption. Moreover, lights produce around 5% of global carbon emission. Thus, the United Nations Environment Programme (UNEP) has released certain guidelines on energy-saving lighting solutions to reduce carbon emissions. With rapid urbanization and rapid economic growth, the lighting industry is expected to grow exponentially over the next two decades, resulting in high demand for LED based lighting. Thus, need for LED-based lighting for effective energy saving and cost saving is expected to drive the growth of the industrial LED market in the coming years.

Industrial LED Market


 

Modern LED lamps are equipped with new LED filaments placed in high-quality glass design. Lamps are available in different socket sizes, shapes, wattages, or light temperatures. LED lamp lasts between 30,000 and 50,000 hours. Researcher predicts that replacing traditional lighting with LED lamps across all the industry verticals would minimize more than 50% of energy consumption, thus reducing around 735 million tons of carbon emission per year.

North America is one of the highest revenue contributors to the global industrial LED market, owing to advancements in technologies, innovations, and investments in respective industry. In addition, increase in demand for smart lighting solutions is expected to provide lucrative opportunities for the industrial and LED market growth. Furthermore, growth in awareness about lighting technologies, lower lighting costs, and energy efficiency supplement the industrial LED market growth.

Industrial LED Market
By Product
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LED Fixtures would exhibit the highest CAGR of 19.0% during 2019-2026.

Industrial LED market trends such as high demand for cost-effective and energy-saving LED lighting, due to high consumption of power and lighting and production around 5% of global carbon emission. Also, with rapid urbanization and rapid economic growth, the lighting industry is expected to grow exponentially over the next two decades, resulting in high demand for LED based lighting. In addition, taking government campaign toward the adoption of LEDs, due to high deploying LED technology-based lights to curb cost and pollution and positive attitude of various countries toward the adoption of LED technology propels the growth of the global market. For instance, in India, several test labs have been established to overcome the barrier of lack of testing protocols, facilities, and accredited laboratories at the national level. Furthermore, surge in need for replacing traditional lighting over conventional lighting, due to high consumption amount of energy and requires a glass bulb to contain essential coatings and/or gases. These factors are expected to fuel the growth of the industrial LED market.

However, voltage sensitivity and temperature dependence and high initial cost of LEDs are expected to hinder the growth of industrial LED market. Conversely, surge in need for smart lighting, owing to provides huge momentum in the process of building smart cities and addresses sustainable development challenges successfully, thereby creating ample growth opportunities for industrial LED market globally.

Industrial LED Market
By Application
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Outdoor Lighting would exhibit the highest CAGR of 18.2% during 2019-2026.

Segmentation

The global industrial LED market is segmented on the basis of product, application, industry vertical, and region. By product, the market is categorized into LED lamps and LED fixtures. The LED Lamps segment dominated the market in terms of revenue in 2018, whereas the LED Fixture segment is expected to grow at the highest CAGR from 2019 to 2026. The applications covered in this report include indoor lighting and outdoor lighting. The industry verticals discussed in this study are oil & gas, mining, pharmaceutical, manufacturing, and others. The global industrial LED market is dominated by the manufacturing segment in terms of revenue in 2018 and is expected to follow the same trend during the forecast period.

Region wise, the industrial LED market analysis is done across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific region is dominated the market in terms of revenue in 2018, whereas LAMEA is expected to grow at the highest CAGR from 2019 to 2026.

Industrial LED Market
By Industry Vertical
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Pharmaceutical would exhibit the highest CAGR of 22.5% during 2019-2026.

Top Impacting Factors

The factors such as high demand for cost-effective and energy-saving LED lighting, government campaign toward LED adoption to curb cost and pollution, surge in need for replacing traditional lighting, voltage sensitivity and temperature dependence, high initial cost of LEDs, and surge in need for smart lighting are expected to significantly affect the growth of the global market. These factors are anticipated to either drive or hamper the industrial LED market growth.

Completive Analysis

The key players profiled in the industrial LED market report are Deco Lighting, Inc., Eaton Corporation, Cree Inc., Dialight Plc, Osram Licht AG, General Electric, Koninklijke Philips N.V., Toshiba Corporation, Zumtobel Group AG, and Syska. These key players have adopted strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to enhance their market penetration. For Instance, Cree expands its industrial lighting portfolio with the addition LXB Series Linear High-Bay luminaires. This series offers best-in-class performance, including enhanced efficacy, reliability, and an extended lifetime that make an ideal solution for high ceilings and high ambient temperatures.

Historical Data & Information 

The global industrial LED market is highly competitive, owing to the strong presence of existing vendors. Vendors of the industrial LED market with extensive technical and financial resources are expected to gain a competitive advantage over their competitors because they can cater to market demands. The competitive environment in this market is expected to worsen owing to technological innovations, product extensions, and different strategies adopted by key vendors increase.

Key Developments/ Strategies

Deco Lighting, Inc., Eaton Corporation, Cree Inc., Dialight Plc, Osram Licht AG, General Electric, Signify Holding., Toshiba Corporation, Zumtobel Group AG, and Syska. are the top companies holding a prime share in the industrial LED market. Top market players have adopted various strategies, such as product launch and product development to expand their foothold in the industrial LED market.

  • In June 2022 - Cree LED announced the launch of XLamp Element G LEDs, delivering a new product class with extremely high light output and efficiency for LEDs of this size. The XLamp Element G LEDs are the latest in Cree LED’s portfolio of lighting solutions providing maximum light output and optical performance with new levels of precision and control.
  • In May 2022 - Signify announced the launch of the latest generation of the Pacific LED gen5 waterproof luminaire, a solution designed for best performance in demanding environments such as industry and parking areas. The new solution is suitable for a wide range of heavy industrial applications. The luminaires offer a sturdy and compact product architecture, as well as high water and dust resistance and mechanical protection.
  • In October 2021 - Dialight launched a New Ultra-Efficient Vigilant High Bay. The Vigilant High Bay has a high efficacy of up to 200 lumens per watt (lpw), providing significant energy savings for industrial lighting applications. This ultra-efficient lighting solution promises to improve visibility while also providing cost-effective lighting alternatives for heavy industrial situations.

Industrial LED Market
By Region
2026
Asia-pacific 
North America
Europe
LAMEA

LAMEA would exhibit the highest CAGR of 14.5% during 2019-2026.

 

Key Benefits for Stakeholders:

  • This study includes the analytical depiction of the global industrial LED market statistics along with the current trends and future estimations to determine the imminent investment pockets.
  • The report presents information regarding the key drivers, restraints, and industrial LED market opportunities.
  • The industrial LED market forecast is quantitatively analyzed from 2019 to 2026 to highlight the financial competency of the industry.
  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industrial LED industry. 

Industrial LED Market Report Highlights

Aspects Details
Industrial LED Market By PRODUCT
By PRODUCT
  • LED Lamps
  • LEL Fixtures
Industrial LED Market By APPLICATION
By APPLICATION
  • Indoor Lighting
  • Outdoor Lighting
Industrial LED Market By INDUSTRY VERTICAL
By INDUSTRY VERTICAL
  • Oil & Gas
  • Mining
  • Pharmaceutical
  • Manufacturing
  • Others
Industrial LED Market By Region
By Region
  • North America  (U.S, Canada, Mexico)
  • Europe  (Germany, France, UK, Russia, Rest of Europe)
  • Asia-Pacific  (Japan, China, Australia, India, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
Key Market Players
Key Market Players

Syska, Deco Lighting, Inc, Dialight, Toshiba Corporation (Toshiba Tec Corporation), Koninklijke Philips N.V, Cree, Inc, OSRAM, Eaton Corporation, Zumtobel Group AG, General Electric

Analyst Review

The industrial LED market is highly competitive, owing to the strong presence of the existing vendors. LED vendors, who have access to extensive technical and financial resources are anticipated to gain a competitive edge over their rivals, as they have the capacity to cater to the global market requirements. The competitive environment in this market is expected to further intensify with increase in technological innovations, product extensions, and different strategies adopted by the key vendors.

The industrial LED market possesses high potential. This is attributed to the fact that in the current business scenario, there has been an increase in demand for industrial LEDs, particularly in developing regions. Moreover, companies in this industry are adopting various innovative techniques to provide customers with advanced and innovative product offerings.

Rapid usage of LEDs in lamps as a replacement of incandescent light sources, owing to advantages such as longer shelf life, low power requirement, and small-sized and robust in nature, is a major driver of this market. In spite such advantages, LEDs are expensive than conventional lighting and are voltage sensitive, which impedes growth of this market. In the near future, the LED technology is expected to provide a superior advantage to its users than conventional lighting systems because of the benefits it offers.

Considering the regional trends of the industrial LED market, Asia-Pacific is projected to hold largest market size. On the other hand, LAMEA is in the introductory phase in terms of adoption of LEDs and is expected to grow at the highest CAGR during the forecast period.

The key players profiled in the report are Deco Lighting, Inc., Eaton Corporation, Cree Inc., Dialight Plc, Osram Licht Ag, General Electric, Koninklijke Philips N.V., Toshiba Corporation, Zumtobel Group Ag, and Syska.

 

Author Name(s) : Avinash Savekar and Asavari Patil | Vineet Kumar

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Industrial LED Market

Global Opportunity Analysis and Industry Forecast, 2019-2026