According to a recent report published by Allied Market Research, titled, "Industrial LED Market by Product, Application, and End User: Global Opportunity Analysis and Industry Forecast, 2019–2026," 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.
An LED is a semiconductor device, the output of which ranges from blue violet (about 400 nanometer (nm)) to red (about 700 nm). Some LEDs are called infrared-emitting diodes (IREDs), emitting infrared (IR) energy, which is greater than or equal to 830 nm. An LED consists of two elements of processed material called N-type semiconductors and P-type semiconductors, which are placed in direct contact to form a region called P–N junction.
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.
LEDs are applicable across several industrial sectors such as oil & gas, manufacturing, pharmaceutical, and others. Factors such as flexibility in design, reliability, less power consumption, and enhanced light versatility boost the adoption of the LED lighting solutions in various industries. Furthermore, superior and reliable performance of LEDs at ambient operating temperatures creates ample industrial LED market opportunities. In addition, the LEDs can improve the miners’ performance for the detection of mine hazards. It can also be used for visually communicating warnings and alerts.
According to the U.S. Department of Energy, outdoor lightning consumers around 1.3 quadrillion BTU of energy annually, which cost around $10 billion per year. U.S. has taken various steps to reduce energy consumption. It is said that replacing all the U.S. street lighting with energy-savings LED lamps would help government save 2.3 billion unit.
Asia-Pacific is one the leading regions toward adoption of advance technology. Developing nations in Asia-Pacific such as China, India Japan, and Australia account for the major market share for the industrial LEDs. The Asia-Pacific industrial LED market is largely controlled by government policies and regulations, which are encouraging sustainable investments in the sector.
At present, China dominates the industrial LED market. Most of the Chinese companies are expanding their production capacity, for instance, global giants such as Samsung and Philips Lighting have increased their production capacity in their Chinese OEM factories. In the near future, Chinese manufacturers will continue to expand their production capacity to launch several novel products in the market. The Chinese Government has been offering various incentives such as tax benefits, subsidies, and other support to encourage the vendors in the market.
Key Findings of the Study:
- Based on product, the LED Lamps segment generated the highest revenue in the global market in 2018.
- Based on application, the indoor lighting segment generated the highest revenue in the global industrial LED market share in 2018.
- Based on end user, the oil & gas segment generated the highest revenue in the global market share in 2018.
The key players profiled in this 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 adopt several strategies such as, new product launch and development, acquisition, partnership and collaboration and business expansion to increase the global industrial LED market share during the forecast period.