The Global Energy Efficient Lighting Market size is expected to reach $74 billion by 2028, rising at a market growth of 8.4% CAGR during the forecast period.
Light quality and quantity have an impact on human health, comfort, safety, and productivity, as well as the economy. Many countries have spent a significant portion of their electrical budget on lighting. Many developing and developed nations have been switching to energy efficient lighting, which is the most cost-effective and dependable form of energy conservation, in order to achieve efficient use of electricity. In the field of lighting, well-known technologies have been used to optimize existing controls and lighting equipment in order to reduce energy usage while improving lighting quality.
The energy efficient lighting market has also grown because of the growing government initiatives to implement energy-saving infrastructure in various countries. For instance, in 2018, the Indian government launched the Gram Swaraj Abhiyan (GSA), which aims to promote social peace by informing rural people about various government welfare schemes and initiatives. Under the UJALA initiative, 21,058 Indian villages with a considerable number of impoverished households were able to purchase LED lights at a reduced price as part of GSA. LED bulbs provided houses with energy-efficient, cost-effective lighting that produced more lumens than incandescent lamps.
Simultaneously, the LED Street Lighting National Program has increased people's productivity at night and made roadways safer for walkers and cars by reducing dark areas and increasing brightness. LED streetlight installation saves up to 50% on electricity expenditures while assuring 95 percent streetlight uptime in states where it has been implemented. Because these lights are programmed, they turn on and off at sunrise and dusk, saving energy use. With the help of CCMS, utilities can also track and fix any defects remotely. LED streetlights have illuminated 3, 00,000 km of roadways in India in the last five years, ensuring public safety and energy efficiency.
During the coronavirus pandemic, however, the medical industry's need for UV LED skyrocketed. Furthermore, market participants invested in the research and development of smart lighting systems as a result of new government initiatives around the world. As a result, by the end of 2021, the LED market was predicted to gain traction. Furthermore, some energy efficient lighting enterprises, such as Advanced Lighting Technologies, are announcing their strategic plans to assist society during the COVID-19 pandemic. Advanced Lighting Technologies, for example, claimed in August 2020 that it is following government rules for functioning during a pandemic and that it is fully operational for supplying lighting goods to customers, projects, and infrastructure development. These important elements could lead to investment opportunities in the energy-efficient lighting business on a worldwide scale.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The below illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches.
The energy efficient lighting sector is booming, owing to the rising demand for lighting that is both efficient and long-lasting, as well as the ability to save energy. Furthermore, different government initiatives to promote the use of LEDs for increased efficiency would drive the market for energy efficient lighting forward. According to the US Department of Energy (DOE), nearly 75% of energy efficient lighting shipping in 2020 will be towards LEDs. Governments all over the world, particularly in growing countries like China, Indonesia, and India, are focusing on infrastructure development, including the alteration of existing structures, and as a result, demand for LED solutions has risen in recent years.
The world is witnessing a tremendous population increase, which has had a significant impact on a number of businesses. This growing population has resulted in a massive increase in energy demand, which the world is not yet prepared for. Modern energy efficient lighting solutions such as modern LED bulbs are not only energy efficient but also incredibly durable and long-lasting. People, also, are becoming mindful of the amount of energy they are consuming and the waste they are generating. They are increasingly adopting more energy efficient solutions, be it electric cars, using public transport, or implementing energy efficient lighting solutions.
People all across the world are converting to LED lights to save energy and money, but they may be exacerbating another issue. For decades, light pollution has been a rising issue, and the recent advent of LED (light-emitting diode) bulbs has significantly increased the quantity of light emanating from cities. For the past four years, the amount of artificial light coming from Earth's surface at night has increased by 2% in radiance and extent every year, owing to the rapid adoption of brilliant LEDs and development. It's not only that light pollution, particularly the blue light emitted by LED lighting, makes stargazing difficult.
Based on Type, the market is segmented into Light Emitting Diodes (LED), Linear Fluorescent Lamps (LFL), High-Intensity Discharge Lamps (HID) and Others. The linear fluorescent lamps segment garnered a substantial revenue share in the energy efficient lighting market in 2021. Fluorescent lamps are a form of gas-charged luminaire that produces light via a chemical reaction in which gases and mercury vapor mix to produce UV light inside a glass tube. Fluorescent lights have a number of benefits over older lighting technologies such as incandescent.
Based on Application, the market is segmented into Commercial, Industrial, and Home. The commercial segment acquired the highest revenue share in the energy efficient lighting market in 2021. LED adoption in commercial sectors is high since they are very energy efficient and help save costs. Furthermore, major manufacturers in the market offer a choice of energy-efficient lighting solutions for commercial usage based on their intended usage.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 42.6 Billion |
| Market size forecast in 2028 | USD 74 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 8.4% from 2022 to 2028 |
| Number of Pages | 220 |
| Number of Tables | 273 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Market Share Analysis, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Type, Application, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. Europe acquired the highest revenue share in the energy efficient lighting market in 2021. Due to the huge output of energy-efficient lamps, the region is regarded as the most lucrative market for energy-efficient lights. The presence of major manufacturers, tight energy efficiency rules and significant power consumption in industrial and residential applications are all contributing factors.
Free Valuable Insights: Global Energy Efficient Lighting Market size to reach USD 42.6 Billion by 2028
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; ABB Group and Schneider Electric SE are the forerunners in the Energy Efficient Lighting Market. Companies such as Toshiba Corporation, Signify N.V., Savant Systems, Inc. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include ams-OSRAM AG, Signify N.V., Savant Systems, Inc., Toshiba Corporation, ABB Group, Schneider Electric SE, Advanced Lighting Technologies Australia, Inc., Nichia Corporation, Bridgelux, Inc., and Digital Lumens, Inc.
By Type
By Application
By Geography
The global energy efficient lighting market size is expected to reach $74 billion by 2028.
Involvement of Government and Corporations are driving the market in coming years, however, Light Pollution Caused by Widespread Implementation of LED Lights limited the growth of the market.
ams-OSRAM AG, Signify N.V., Savant Systems, Inc., Toshiba Corporation, ABB Group, Schneider Electric SE, Advanced Lighting Technologies Australia, Inc., Nichia Corporation, Bridgelux, Inc., and Digital Lumens, Inc.
The expected CAGR of the energy efficient lighting market is 8.4% from 2022 to 2028.
The Light Emitting Diodes (LED) segment acquired maximum revenue share in the Global Energy Efficient Lighting Market by Type in 2021, thereby, achieving a market value of $31.7 billion by 2028.
The Europe market dominated the Global Energy Efficient Lighting Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $24.8 billion by 2028.
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