As per a recent report by Frost & Sullivan, the LED Lights market is estimated to reach $82.0 billion by 2026 from $67.7 billion in 2019
Frost & Sullivan’s recent analysis, 2020 Annual Update of Global LED Lighting Market, finds that the increasing demand for energy-efficient lighting, the rising number of smart city projects and overall infrastructure development are driving the LED lighting market across the globe. The market is estimated to reach $82.0 billion by 2026 from $67.7 billion in 2019, at a compound annual growth rate (CAGR) of 2.8 per cent.
However, with the COVID-19 pandemic, the industry is likely to experience varied impacts across regions due to discrepancies in containment measures and lockdown implementation. Even with the partial ease in lockdowns and a resumption of manufacturing, the market will need a couple of years to recover and reach the same level as before the crisis.
“Smart buildings will accelerate the adoption of smart lighting more than any other segment. The revitalization of cities will also provide the much-needed impetus for the installation of smart lighting,” said Dennis Marcell Victor, Energy & Environment Research Analyst at Frost & Sullivan.
India and China contributing the maximum revenue
From a regional perspective, Asia-Pacific (APAC) continues to be the key growth area, drawing $35.4 billion in revenues by 2026, with India and China contributing the maximum revenue. Similarly, after APAC, Europe and North America will contribute significantly to the market due to developments in advanced lighting applications related to the healthcare, industrial, office, and hospitality verticals in both regions.
Each respectively witnessing growth of four per cent and 4.1 per cent throughout the forecast period. Latin America will experience the highest growth over the forecast period at 5.1 per cent because of its focus on office and street lighting as part of smart city solutions.
“Government rebates, savings on disposal costs, improved performance of workers, and limitless Internet of Things (IoT) applications for LED lighting present a good business case for LEDs to be adopted across applications,” added Victor.
Lighting-as-a-Service (LaaS), as per the report, will see higher adoption and usher in a new business model while driving other applications such as connected lighting and facility management. It is expected to reduce the capital expenditure of the consumer, with service providers bearing upfront costs.
Additionally, autonomous vehicles need to implement digital LED lights technology to enhance safety features. “Circular economy measures should start from the design phase. Designing modular, upgradeable, and reusable products will help reduce waste from used LED light sources. UV-C lights should be used to disinfect workplaces, healthcare centers, and public transport. Proper guidelines should be outlined for handling UV-C lights for widespread usage,” read the report.