NEW YORK, March 29, 2018 (GLOBE NEWSWIRE) — According to the new market research report published by P&S Market Research, global LED lighting market size is projected to cross $70.2 billion by 2023, growing at a CAGR of 12.6% between 2017-2023. The growing adoption of energy efficient lighting solutions, across the globe is one of the primary factors attributing to the growth of worldwide LED lighting industry. The increased investment in infrastructure enhancement, along with continuous price erosion of LED lighting solutions is driving the growth of the market. Apart from this, increase in demand of LED for various applications of general lighting have also benefited the penetration of LEDs in recent years.
Based on product type, the LED lighting market is classified into luminaire and lamp. Replacing a lamp is much less costly than removing and replacing a luminaire. On account of this, luminaire is estimated to contribute larger revenue, in value terms to the overall LED lighting industry and is also expected to register higher growth when compared to lamps, during 2017-2023. In terms of volume, luminaire is estimated to contribute over 70% to the worldwide market for LED lighting. The market for luminaire is mainly driven by new installations and has a high correlation with global gross domestic product (GDP). However, the market for lamp has a lesser degree of correlation with GDP and is predominantly driven by replacements.
The Latin American market for LED lighting is expected to witness the fastest growth between 2017-2023. The LED lighting market in Latin America is projected to grow at a CAGR of 14.5% during the forecast period. Among all the countries in the Latin American region, Brazil is estimated to contribute the largest revenue to the Latin American market for LED lighting between 2017-2023. The growth of market in the country can be attributed to the declining manufacturing cost of LEDs and increasing demand for energy efficient and sustainable lighting.
The adoption of LEDs is continuously increasing in the residential, commercial and industrial lighting applications. A DOE 2014 study, Energy Savings Forecast of Solid-State Lighting in General Illumination Applications, predicted that LED lighting will represent 84% of all lighting sales by 2030, resulting in an annual primary energy savings of 3.0 quadrillion British thermal units (quads). Increasing acceptance of LED lighting, across various lighting applications is one of the primary factors, which is likely to propel the growth of the LED lighting market.
Geographically, Europe has been the largest smart lighting market, accounting for more than 35% of global revenue in 2016, whereas the sales in Asia-Pacific is expected to witness the fastest growth, during the forecast period.
Asia-Pacific has been the largest solar street lighting market, whereas MEA is expected to witness the fastest growth among all the regions. The fastest growth in MEA market can be attributed to increasing government support, constantly increasing energy costs, rise in demand of electricity, surging demand for renewable lighting sources, and increasing awareness amongst citizens about benefits associated with the use of solar street lighting over traditional lighting sources.
The demand for hospital lighting system has increased owing to infrastructural development of multispecialty hospitals across countries. The use of advanced lighting system is witnessing a rapid growth in hospitals due to the wide adoption of the lighting products in various hospital applications. The major trends observed in this industry include adoption of solid state lighting and government focus towards energy efficient lighting in hospitals.