Solid State Lighting Market Research, 2027
The global solid state lighting market was valued at $32.65 billion in 2019 and is projected to reach $74.25 billion by 2027, registering a CAGR of 12.2% from 2020 to 2027.
Solid state lighting devices comprise semiconductors that convert electricity into light. A solid state lighting device generates visible light through electroluminescence, a phenomenon wherein a specially formulated semiconductor diode glows on passing electric current is passed through it. Solid state lighting is used in a wide range of applications due to various benefits offered by it, such as long life, better quality of light output, intrinsically safe, small size, and high durability. Therefore, these factors are anticipated to boost the solid state lighting market during the forecast period.
The solid state lighting market is expected to witness growth during the forecast period due to a drastic reduction in energy consumption with the use of solid state lighting. The market is expected to be driven by an increase in awareness among the population on the profound influence of lighting on human health. The ongoing development of solid state lighting offers remarkable technical features, which are estimated to revolutionize the solid state lighting industry. An increase in government-sponsored industry consortia further accelerates the industry growth. Therefore, attributed to these factors, the solid state lighting market is expected to experience steep growth shortly.
Increase in governmental initiatives, growth in industrialization, and surge in disposable income are some of the other drivers for the solid state lighting market growth. However, a lack of control, compatibility, and heat management issues due to the small size of solid-state luminaries act as challenges, which obstruct the market growth in certain applications. Furthermore, the emergence of smart lighting and fostering innovations to increase the efficacy of lighting provide lucrative opportunities for the solid state lighting market.
The COVID-19 pandemic significantly impacted the global economies, resulting in supply chain & production disruptions and reduced demand from various sectors. The solid state lighting market witnessed a dip in its growth rate, owing to delayed construction projects, which led to a substantial impact. However, the market is anticipated to gain momentum by the end of 2021.
Segment Overview:
The global solid state lighting market is analyzed by type, installation type, application, industry vertical, and region.
Based on type, it is fragmented into LED, OLED, and PLED. The LED segment dominated the market in terms of revenue in 2019 and is expected to follow the same trend during the forecast period. Based on installation type, the market is segregated into new installation and retrofit. The retrofit segment accounted for the highest market share in 2019 and is estimated to follow the same trend during the forecast period.
By Type
LED segment is projected as one of the most lucrative segments.
By application, the market is divided into indoor lighting, outdoor lighting, and specialty lighting. Indoor lighting accounted for the highest market share in 2019 and is expected to retain its dominant position during the forecast period. By industry vertical, the market is classified into residential, industrial and commercial, medical, transportation, and others. The global solid state lighting market is dominated by the industrial and commercial segment in terms of value.
By Application
Indoor Lighting segment is expected to secure leading position during forecast period.
Region-wise, the global solid state lighting market is analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, Italy, and rest of Europe), Asia-Pacific (China, India, Japan, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa). Asia-Pacific accounted for the highest share in 2019, owing to the presence of a significant number of leading market players and an increase in demand from various sectors for energy-efficient lighting. Leading market players from this region make considerable investments in line with diverse applications of solid-state lighting. Europe was the second largest contributor in terms of revenue in 2019, and is expected to witness significant growth during the forecast period, owing to changing stringent regulations for the use of energy-efficient lighting.
By Geography
Asia-Pacific region would exhibit the highest CAGR of 12.9% during 2020-2027
Top impacting factors
The significant impacting factors in the solid state lighting market include high demand for energy-efficient & cost-effective lighting systems, considerable amount of investments from key market players, rise in health-conscious population, and increase in government-sponsored initiatives. However, slow technological development of solid-state luminaries is expected to hinder the market growth. Moreover, the emergence of smart lighting is projected to offer remunerative opportunities to the solid state lighting market. Therefore, these factors are anticipated to have a definite impact on the market during the forecast period.
Competition analysis
Competitive analysis and profiles of the major solid state lighting market players, such as Cree, Inc., Energy Focus Inc., General Electric Company, Nichia Corporation, Osram Licht AG, Royal Philips Electronics N.V., Samsung Electronics Co., Ltd., Seoul Semiconductor Co. Ltd., Sharp Corporation, and Toshiba Corporation, are provided in this report.
Key benefits for stakeholders
- This study comprises an analytical depiction of the global solid state lighting market size along with the current trends and future estimations to depict the imminent investment pockets.
- The overall solid state lighting 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 current forecast of the solid state lighting market is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers in the solid state lighting market.
- The report includes the revenue share of key vendors and market trends.
Solid State Lighting Market, by Type Report Highlights
| Aspects | Details |
 By Type |
|
 By Installation Type |
|
 By Application |
|
 By Industry Vertical |
|
 By Region |
|
 Key Market Players | SIGNIFY HOLDING, GENERAL ELECTRIC COMPANY, SEOUL SEMICONDUCTOR CO. LTD., NICHIA CORPORATION, OSRAM LICHT AG, CREE, INC., SHARP CORPORATION, ENERGY FOCUS INC., SAMSUNG ELECTRONICS CO., LTD, TOSHIBA CORORATION |
Analyst Review
Solid state lighting defines a new era of lighting technologies. The solid state lighting industry witnesses emergence of many young professionals working in the leading edge of solid state lighting supply chain along with the presence of leading players of lighting technologies. These leaders revolutionize the solid state lighting market through innovations, product marketing, lighting design, and engineering. Therefore, the solid state lighting market is estimated to gain popularity during the forecast period.
According to Stephan Buurma, a board member of Messe Frankfurt Group, “There is increase in LED lighting as a result of government policy and a shift by the public and private sectors toward energy saving.” He also said that due to continuous penetration of the internet across the globe, future lighting products must be integrated with the internet, making it an essential trend for smart homes.
Full spectrum LED, a new technology in the LED segment, is anticipated to emerge in the coming years. According to a study by the Fraunhofer Institute for Building Physics (IBP) in Stuttgart, Germany on the visual impact and perceptual performance of LED lighting, full spectrum LED products outperform conventional LED lighting solutions. In line to the above study, Dr. Ulf Meiners, Managing Director at Nichia Germany, stated that there is a need for more research on the impact of full spectrum LEDs on people’s perception. Nichia Corporation focuses to develop a range of full spectrum LED products in the coming years. Therefore, the solid state lighting market is expected to advance in terms of technologies, paving a way for the development of new products during the forecast period. .
Moreover, Pakwan Jiamjiroj, General Manager of Exhibiz Co Ltd. stated that entrepreneurs and manufacturers of lighting products need to adapt their operations to the new era mobilized by digital technology. Their business strategy must emphasize to develop products that can comply with the fast-changing technology for the future with energy savings and ease of use & maintenance.
Various leading manufacturers, such as Cree, Inc., Energy Focus Inc., General Electric Company, Nichia Corporation, Osram Licht AG, Royal Philips Electronics N.V., Samsung Electronics Co., Ltd., Seoul Semiconductor Co. Ltd., Sharp Corporation, and Toshiba Corporation, occupy a prominent revenue share in the solid state lighting market. The key market players are anticipated to face cutting-edge competition in terms of technologies and products. Considering the various makeshifts in the lighting industry, the solid state lighting market is projected to witness growth exponentially.
Loading Table Of Content...
