The Global Energy Efficient Lighting Market Anticipated to Generate a Revenue of $93,303.0 Million Growing at a CAGR of 8.1% from 2022 to 2030Download Sample Reports Overview
The global energy efficient lighting market is estimated to be valued at $93,303.0 million by 2030, surging from $46,153.8 million in 2021, at a noteworthy CAGR of 8.1%.
Impact Analysis of COVID-19 on the Global Energy Efficient Lighting Market
The global market for energy efficient lighting is predicted to experience a lower growth rate during the COVID-19 pandemic, due to the companies incurring losses during the lockdown. The pandemic that began from China took no time to spread to the other parts of the world. The government-imposed shutdown caused disruption in supply chain, as most of the vendors were dependent on China for electronics supply. This resulted in a delay in completion of smart projects and fluctuation in prices of energy efficient lights. The COVID-19 pandemic had a negative impact on the global market in 2020. Construction site lockdowns and temporary suspensions resulted in a drop in demand for energy efficient lighting.
However, construction activities increased in the second quarter of 2021, with the introduction of new and redesigned projects, resulting in the slow recovery of the energy efficient lighting market. Moreover, research ongoing during the pandemic have found that UV-emitting LED lights can be used as a disinfectant at home or other spaces. For instance, in August, 2020, U.S. Food and Drug Administration announced that LEDs that emit UV rays can be used as disinfectants for nonporous surfaces, air, and water. This will increase the adoption of energy efficient lighting such as UV-LEDs and eventually bolster the market globally. These factors may lead to creating great opportunities for the investors during the forecast period.
Global Energy Efficient Lighting Market Analysis
The enormous growth of the global energy efficient lighting market can be attributed primarily to people's growing interest in energy efficient lighting. Furthermore, rising awareness of low-carbon lighting and government energy-efficiency initiatives are driving forces behind the increased adoption of energy-efficient lighting. Furthermore, key market players are pursuing strategic alliances, business expansion, and technological innovations in order to gain a significant share of the global industry. Savant Systems Inc., for example, announced the complete acquisition of GE Lighting in July 2020, and this acquisition will support the development of cost-effective, unique, and smart home solutions with intelligent lighting for its customers. Such offerings may result in an increase in global demand for energy-efficient lighting.
However, higher manufacturing costs may have a negative effect on global energy efficient lighting market. Furthermore, the price of energy efficient lighting is higher compared to other conventional incandescent lamps, which may obstruct the growth of the global market.
The global energy efficient lighting industry is expanding rapidly, especially in China, India, and Brazil. People are gravitating toward smart technologies, which is accelerating the global adoption of smart LEDs. Furthermore, the market's growth is expected to be boosted by the adoption of low-carbon lighting. Furthermore, major energy-efficient lighting providers are offering a variety of technologies to create more appealing and enhanced customer experiences. For example, Philips announced the launch of the Philips Smart Wi-Fi LED light bulb in November 2019; these bulbs are simple to use and can be connected to a Wi-Fi network. Mobile apps such as Google Assistant, Amazon Alexa, and voice assistants such as Siri can control these lights. These elements may present lucrative opportunities for the global economy.
Global Energy Efficient Lighting Market, Segmentation
The global energy efficient lighting market is segmented based on source, application, and region.
The source segment is further classified into high-intensity discharge lamps (HID), linear fluorescent lamps (LFL), light emitting diodes (LED), and others. Among these, light emitting diodes (LED) sub-segment is anticipated to have the dominant share and surpass $42,659.0 million by 2030, with an increase from $20,337.2 million in 2021.
Light emitting diodes (LED) is a semiconductor device, when passing an electric current, it emits lights. There are also called solid-state devices. There are many benefits of using LED as compared to other type of lights such as its long life, energy efficiency, high intensity & brightness, reliability, low radiated heats, directional lighting, instantaneous illumination, directional lighting, and many, among others. All such factors made LED an ideal light and therefore government and other corporations highly support it.
Governments have taken numerous initiatives to address issues such as pollution, carbon emissions, and so on. As a result, governments around the world are taking strategic steps to replace traditional lighting with LEDs. For example, New York City intends to replace 250,000 streetlights with LEDs. In addition, Barcelona (Spain) announced the deployment of over 3,000 smart LEDs capable of monitoring noise, pollution, humidity, and overall environmental conditions. Furthermore, energy efficient lighting market players are constantly integrating and deploying technologies for the development of energy efficient lights. All of these factors will have a positive impact on sub-segment growth in the coming years.
The application segment is further classified into home, commercial, and industrial. Among these, the home sub-segment is anticipated to have the fastest growth and surpass $28,756.3 million by 2030, with an increase from $13,944.1 million in 2021.
The energy efficient lights that are used in homes are incandescent bulbs, LEDs, and CFLs. They are coming in different sizes and shapes according to their uses in home such as for bedroom use, living room use, dining room use, kitchen use, and bathroom use. Moreover, lights that are applicable in home use should be energy efficient, cost effective, carbon free, and many, among others. Therefore, demand for energy efficient lights for home will be huge in upcoming years. All such factors will boost up the energy efficient lighting market. According to the US department of energy, the most suitable lighting options for home and compact fluorescent lamps (CFLs), halogen incandescent, and light-emitting diodes (LEDs). Moreover, ENERGY STAR-qualified LEDs are energy efficient lights such as they save 20-25% of energy and last 15-20 times longer comparative to common bulbs. All these factors will positively affect the sub-segment growth in upcoming years and convince the people to use energy efficient lights for home use.
The energy efficient lighting market in the Europe region is projected to witness rapid growth. This market generated a revenue of $13,883.1 million in 2021 and is further projected to reach up to $29,959.6 million by 2030.
The market is primarily driven by rising demand for energy-efficient lighting systems in Europe. Furthermore, growing awareness of the low power consumption affiliated with lighting systems is a significant growth driver. Aside from that, European governments have been enacting rigorous standards policies to encourage the use of sustainable lighting solutions and to prohibit halogen lamps. This, combined with government incentives to raise the adoption of LED products, has motivated consumers to buy LED technology-based products. Furthermore, the advent of low smart LED lighting systems with improved control techniques is fueling market growth. Furthermore, significant infrastructure developments throughout the region, as well as falling LED prices are anticipated to boost the Europe energy efficient lighting market.
Key Players in the Global Energy Efficient Lighting Market
Some of the leading global energy efficient lighting market players are
- General Electric
- Toshiba Corporation
- Schneider Electric
- Advanced Lighting Technologies Australia Inc.,
- NICHIA CORPORATION
- Digital Lumens, Inc.