“Global Energy Efficient Warehouse Lighting System Market to reach a market value of USD 31.9 Billion by 2031 growing at a CAGR of 12.2%”
The Global Energy Efficient Warehouse Lighting System Market size is expected to reach $31.9 billion by 2031, rising at a market growth of 12.2% CAGR during the forecast period.
Rapid industrialization and e-commerce growth in nations like China, India, and Southeast Asia are driving the region's growth and raising demand for warehouse space. Governments in the Asia Pacific are also implementing stringent energy efficiency standards and incentivizing sustainable infrastructure development, further encouraging the adoption of energy-efficient lighting systems in warehouses. This combination of economic growth, increased warehouse construction, and supportive regulations has established Asia Pacific as a leader in the market. Thus, the Asia Pacific segment witnessed 38% revenue share in the energy efficient warehouse lighting system market in 2023.
As energy prices continue to climb, managing operational costs has become a top priority for businesses that rely on large-scale facilities with extensive lighting needs. Traditional lighting systems, especially in vast spaces like warehouses, can contribute substantially to electricity bills, representing a significant ongoing expense. Additionally, the rapid expansion of e-commerce fundamentally reshapes the warehousing industry, leading to an unprecedented demand for fulfillment centers worldwide. According to the United Nations Conference on Trade and Development (UNCTAD), global e-commerce sales reached $26.7 trillion in 2020, with continued growth projected as online shopping becomes more ingrained in consumer behavior. Thus, the growth of e-commerce will also drive the growth of warehouses, which, in turn, will propel the expansion of the energy efficient warehouse lighting system market.
However, the initial investment required for energy-efficient lighting systems, including LEDs and smart lighting controls, tends to be significantly higher than conventional lighting options. These costs encompass the price of high-quality LED fixtures, advanced lighting controls, and potential installation, integration, and training expenses. This challenge is compounded by the fact that many businesses focus on short-term gains and quick returns on investment. Hence, the high cost may impede the market's growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above 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 Acquisitions, and Partnerships & Collaborations.
Based on application, the market is classified into industrial, commercial, and others. The commercial segment procured 29% revenue share in the market in 2023. Commercial warehouses, including retail storage facilities and distribution centers, increasingly recognize the benefits of energy-efficient lighting.
On the basis of type, the market is divided into light emitting diodes (LED), linear fluorescent lamps (LFL), high-intensity discharge lamps (HID), and others. The light emitting diodes (LED) segment acquired 53% revenue share in the market in 2023. The LED segment leads the market due to its high energy efficiency, longevity, and rapidly decreasing costs.
Free Valuable Insights: Global Energy Efficient Warehouse Lighting System Market size to reach USD 31.9 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment garnered 30% revenue share in the market in 2023. The region’s emphasis on sustainability and corporate responsibility, along with high energy costs, has driven many warehouse operators to invest in energy-efficient lighting solutions.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 13.0 Billion |
| Market size forecast in 2031 | USD 31.9 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 12.2% from 2024 to 2031 |
| Number of Pages | 216 |
| Number of Tables | 270 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Application, Type, Region |
| Country scope |
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| Companies Included | ams-OSRAM AG, Nichia Corporation, Acuity Brands, Inc., Signify N.V., Koninklijke Philips N.V., Schneider Electric SE, Legrand S.A. (Legrand Group), Honeywell International, Inc., Cree Lighting (Ideal Industries, Inc.), and Eaton Corporation plc |
By Application
By Type
By Geography
The Market size is projected to reach USD 31.9 billion by 2031.
Rapidly increasing energy prices are driving the Market in coming years, however, Technical challenges and complexity restraints the growth of the Market.
ams-OSRAM AG, Nichia Corporation, Acuity Brands, Inc., Signify N.V., Koninklijke Philips N.V., Schneider Electric SE, Legrand S.A. (Legrand Group), Honeywell International, Inc., Cree Lighting (Ideal Industries, Inc.), and Eaton Corporation plc
The expected CAGR of this Market is 12.2% from 2024 to 2031.
The Industrial segment is leading the Market by Application in 2023; thereby, achieving a market value of $16.3 billion by 2031.
The Asia Pacific region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $12.6 billion by 2031.
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