LEDs, which provide energy efficiency as well as improved environmental performance, are expected to witness robust demand around the world, with a market size of USD 157 Billion.

Rising consumer awareness of the benefits of LED lighting, as well as a shift toward green lighting, are expected to drive demand for LED products. The thriving lighting industry contributes the most to the rising demand for energy-efficient products and LED-based modifications to existing lighting products. Furthermore, technological advancements and rising environmental concerns have accelerated the growth of the LED lighting market. Other major factors driving the growth of the LED lighting market include competitive manufacturing costs, high economic growth rates, and large-scale industrial constructions in the residential and commercial segments. Furthermore, increasing construction activities in developed and developing countries, along with stringent government regulations to lower the adoption of inefficient lighting technologies, are the major factors expected to drive the market. LED lights offer high lumen power by consuming less power, better service life, and no flickering. Also, LED manufacturers are focused on integrating solutions such as Wi-Fi, occupancy sensor, and day-lighting which is attracting consumers in turn responsible to increase product sales. These factors are contributing to the market growth.

According to the research report, “Global LED Lighting Market Outlook, 2028” published by Bonafide Research, the market is anticipated to reach market size of USD 157 Billion during the forecast period, increasing from USD 78 Billion in 2022 with expected CAGR of 12.34%. Rapid advancements in semiconductor technology, as well as favourable government policies and initiatives encouraging the adoption of LED lighting technology, are factors driving market growth. The introduction of advanced products with long service life, Wi-Fi enabled, nanosecond switching, and flicker-free features by major players is expected to support the target market's growth. For example, Signify N.V., a lighting solution provider, announced the launch of smart LED down-lighter, T-Bulb, T-Beamer, and Batten under the Wiz smart bulb brand portfolio in August 2021. The newly released products use Wi-Fi and are expected to attract new customers to help the company grow.

The government's support for energy-efficient lighting technologies through various regulations has expanded the applications of LED lights across various industrial, commercial, and residential sectors. Furthermore, lighting consumes nearly 10% of household electricity and 18-40% of commercial premises electricity. Globally, there is an increasing demand for energy conservation, which provides opportunities for the market. The transition to energy-efficient lighting is expected to reduce global lighting electricity demand by 30-40% by 2030. Product innovation by various companies is also contributing to market growth. Realme India will launch Realme Smart LED bulbs in India in July 2022. With an input voltage of AC 120-250V, the product has a rated power rating of 9W. The Realme Link app, Google Home, or Amazon Alexa can be used to control the lights. Because of the significant change in demand for LED technology with improved features and usage, the demand for outdoor LED lighting has historically been subject to moderate growth. This is expected to drive market growth during the forecast period.

According to the report, the global market is segregated into two product types including lamps and luminaries. Among them, luminaries hold the higher market share in the analytical year. LED luminaires comprise the lights used on high bays, track lights and streetlights, etc. Rising smart cities projects, coupled with increasing commercial construction activities are resulting in the new installation of streetlights and track lights which is a primary reason to support the segment growth. On the other hand, the LED lamp segment is anticipated to register the highest CAGR over the forecast period owing to the increasing adoption of LED lamps in the residential sector. LED lamps are available in various designs and provide benefits such as better energy efficiency and high stability compared to other solutions such as incandescent lamps and CFL. Likewise, the government's approach toward rising LED awareness among consumers to lower/manage energy usage is factors expected to support the target market growth.

The LED lighting market has enormous potential in the Asia Pacific region, and it is anticipated that consumers would accept these systems as an integral part of digitalized households. Increasing construction activities in Asia Pacific contribute significantly to the growth of the LED lighting market in the region. The thriving electrical and electronics industry in Asia Pacific also supports the growth of the LED lighting market. In the last few years, LED lighting has become the dominant artificial light source and is preferred over all the conventional light sources such as incandescent bulbs, CFL and fluorescent lamps, high-pressure sodium lamps, and metal halide lamps in the region. The LED lighting market in Rest of World is growing slowly compared to other regions; however, emerging economies such as South Africa and the GCC countries in the Middle East are expected to contribute to the market growth in the coming years.

Asia Pacific is considered to be the fastest-growing market for LED lighting and is expected to hold a significant market share in the years to come. With the developing infrastructure of roads and upcoming development projects, the booming construction industry in developing countries such as China, India, and Indonesia is expected to create massive demand for LED lighting for residential as well as outdoor applications. It will include roadways, traffic lights, tunnels, parking lots, garages, and lighting in bathrooms, hallways, dining rooms, and kitchens. China's largest population, well-developed electric supply throughout the country, highly developed urban areas, and large-scale industrialization make the market for LED lighting solutions highly profitable. India is one of the largest countries in the world and has the second-largest population, creating a massive demand for LED lighting solutions. The infrastructure necessary for electricity supply is still under development in this country, so the rural regions are yet to be leveraged for the LED lighting solutions, but due to numerous government initiatives to boost electric supply to these areas, an improvement in the LED lighting solutions is estimated to occur over the forecast period.

A key factor driving the demand for LED products in Europe has been the European Union’s policy measures banning the sale of inefficient lighting technologies. In 2009, Europe phased out incandescent lamps in the region. In 2016, directional halogen lamps were also phased out. Similarly, in September 2018, the region also banned the sale of non-directional halogen lamps. These policy measures have facilitated consumers' gradual replacement of traditional lighting products with LED technology-based products. Moreover, to generate cost savings for consumers, switching to energy-efficient LED lights has provided significant environmental benefits. The high energy costs in the region are forcing households, public investors, and governments to consider energy-saving lighting solutions. The governments across the region are also providing subsidies and incentives to increase the adoption of LED products among consumers and phase out older and less efficient technologies to enhance the overall efficiency of the lighting industry in Europe.

Further, based on application, the global market is segmented into two parts including indoor and outdoor. Among them, indoor application leads the market with more than 65% share in 2022. This can be attributed to increasing demand from supermarkets, malls, and retail stores for efficient lighting solutions compared to fluorescent and High-Intensity Discharge (HID). LED lighting solution save more light, emits less heat, and is cost-effective compared to other lights solution. Likewise, high demand from hospitals and educational institutes is expected to support the segment growth. However, the outdoor segment is expected to witness moderate growth over the forecast period. This can be attributed to increasing infrastructure development projects related to airports, highways, and public places. In addition, increasing government initiatives to attain net-zero emission by lowering energy consumption is expected to increase demand for LEDs lights for outdoor applications. Based on the distribution channel, retail/wholesale segment is leading the market with more than half of the market share in 2022.

Other key factors driving the demand for LED products in Europe include infrastructure growth and a decline in the average price of LEDs. The European government has mandated the Eco-Design regulation for selling lamps in Europe. The existing rules under European Regulation No. 874/2012 will be replaced by a new energy regulation that sets energy efficiency requirements, bulb lifetime, and warm-up time under the EU 2019/2015 regulation, effective September 1, 2021. Furthermore, companies in the region are launching new products to cater to consumer demands in design, energy efficiency, applications, and other functionalities. In August 2020, for instance, Osram Semiconductors of Germany launched the Synios S 2222 product series with a compact size, high brightness value, and wide colour range of light sources. The Synios S 2222 product line comes in six different colors, providing high-quality, personalised lighting solutions for different application scenarios, such as architectural lighting.

On the other hand, the LED lighting market in North America is expected to grow significantly during the forecast period, owing primarily to lower LED manufacturing costs. Government subsidies for semiconductor equipment, such as metal-organic chemical vapour deposition, are primarily responsible for the cost decrease (MOCVD). As a result, LED manufacturers are increasing their LED production capacities. Furthermore, government assistance has enabled vendors to reduce variable manufacturing costs. As a result, market growth will be fuelled during the forecast period. The market in North America is expected to grow at a steady CAGR due to the increasing adoption of LED streetlights in six U.S. cities over the forecast period. Detroit, Los Angeles, Boston, Portland, New York City, and San Francisco are among the six cities. LED streetlights will reduce electricity consumption by more than 50% while also lowering maintenance costs.
According to the report, the market is further segregated into two installation types including new and retrofit. The retrofit installation category is expected to register a higher CAGR, over 12%, during the forecast period. This can be attributed to the mushrooming replacement of incandescent and sodium-vapour lamps with LEDs in various countries such as Japan, India, China, South Korea, the U.A.E., and the U.S. Moreover, with the phasing out of incandescent bulbs in these nations, the demand for lamps for retrofit installation is rising, which fortifies the sales in this category. Furthermore, LEDs use much less energy as compared to incandescent bulbs because diode light is highly power-efficient than filament light. With performance improvements and plummeting prices, they are affordably and effectively replacing 40, 60, 75, and 100 W incandescent bulbs on a large scale. For instance, A-lamps can easily fit into the old sockets of incandescent bulbs, due to which consumers are increasingly demanding these lamps in the residential and commercial sectors.

The growth of the LED lighting market in South America is moderate due to slower adoption of advanced technology and a lack of skilled labour required for the operation of manufacturing plants of smart lighting equipment. However, the South American LED lighting industry is expanding, which may be attributed to the rising demand for sustainable and energy-efficient lighting and the falling cost of producing LEDs. For instance, Brazil, which once exported LEDs, has now built many manufacturing facilities to hasten the technology's adoption in the business, industrial, and public sectors. Additionally, the Brazilian government passed a law mandating the use of LED lighting products instead of incandescent bulbs for different road and tunnel lighting applications. Macroeconomic factors that affect the market also frequently include strong industrialization, urbanization, and healthy economic growth. Another important factor influencing the market's growth in the region is the rising awareness of the significance of energy efficiency, combined with regional government mandates to set higher standards for energy efficiency and continuous innovations in LED technology by the top manufacturers.

However, to some extent, the Middle East and Africa are uncharted territories for industrialization and advanced technology. There has been a swift flow of infrastructure investments in the Middle East region, especially in Gulf Cooperation Council (GCC) countries such as Saudi Arabia and Qatar, due to the rising population and the upcoming FIFA World Cup in 2022. Government legislation in this region requiring the use of energy-efficient lighting, as well as growing environmental concern, have resulted in widespread awareness of green products. People's inclination toward focusing on long-term benefits is boosting the demand for LED lighting solutions, where technology up gradation goes hand-in-hand with cost savings in the long run despite the higher initial cost compared to conventional technologies. Increasing government spending on healthcare infrastructure and technological developments is an important factor in the growth of the LED lighting market in the forecast period.

Covid-19 Impacts:
The COVID-19 pandemic spread quickly, and its impact was felt globally in supply chains. This factor had a negative impact on global economic activity. However, due to the closure of manufacturing units of light emitting diode manufacturers in China, the United States, and European countries, the global market is expected to show a moderate decline in 2020 and positive growth going forward. This posed a challenge to the global transfer of industrial production. Several cases have been reported in China since the coronavirus outbreak began in December 2019. Light emitting diode manufacturers, like other manufacturing sectors, were heavily reliant on Chinese companies for raw materials. China is the world's first economy to be primarily affected by the coronavirus, forcing all production units to close. However, as the use of energy-efficient lighting systems increased in developing countries, so did the installation of light-emitting diodes in commercial and residential spaces such as smart homes, warehouses, retail stores, and factories. China, India, Saudi Arabia, Germany, and South Africa are seeing a rapid increase in the use of such diode lamps and luminaries, which has resulted in an increase in the installation of these diode systems. Furthermore, many governmental and non-governmental organisations, such as the Energy Conservation Society and the International Energy Conservation Corporation, have defined various laws to reduce lighting consumption and increase energy savings, which has fuelled the global market.

Recent Developments:
• In February 2021, Orient Electric announced the launch of its emergency LED lights solutions which provide backup lighting for up to 4 hours during a power outage. The range includes LED Bulbs, LED Batten, LED Recess Panel, and Bulkhead.
• On 1st October 2021, General Electric Company has partnered with True Value. True Value is the only hardware channel distributor of GE.
• In January 2021, Sensor Electronic Technology (SETi) and Seoul Viosys, the leading global providers of LED technology and subsidiaries of Seoul Semiconductor, partnered together to launch their new Violeds technology that can quickly and effectively kill 99.437% of SARS-CoV-2 in less than one second. The testing was conducted in December 2020 through KR Biotech, a South Korea-based research institute specializing in sterilization testing of the new coronavirus.
• In May 2022, Syska LED announced the release of LED Recessed SMD downlight, the lighting solution has numerous end use cases, provides bright illumination and is available in a wide range of watts.
• In 2019, Integrated Device Technology Inc. (IDT), a subsidiary of Renesas Electronics Corporation, started conducting two intelligent street projects in Malaysia. The projects involve the replacement of sodium-vapor bulbs with LEDs for street applications.
• May 2022 - SYSKA LED introduced the Syska LED Recessed SMD Downlight (Glowslick-SSK-SLP). This is an ideal lighting solution for indoor applications because it can be used in stores, malls, homes, showrooms, and office spaces.
• February 2022 - Signify entered a partnership with Gerard Lighting Group, a manufacturer of electrical lighting products. This acquisition aimed at strengthening its position in the lighting markets of Australia and New Zealand, as well as to provide growth opportunities, such as those between Pierlite's luminaire offerings and Signify's connected lighting solutions.