According to Market Allied Research, the region is expected to register a CAGR of 21.5% in LED use during 2017-2025, growing at the fastest rate as compared to other geographies.
The LED revolution has taken over the complete world of lighting. It has penetrated every sector be it commercial, residential, industrial or public utilities; and the benefits of using this semiconductor light source has made sure that the numbers are only going to increase further. As per a recently released report by Market Allied Research, global industrial and commercial LED lighting market is expected to reach $39.39 billion by 2025.
The report is titled ‘Industrial and Commercial LED Lighting Market by Product (LED Lamps and LED Fixture), Application (Indoor Lightning and Outdoor Lightning), and End User (Industrial and Commercial): Global Opportunity Analysis and Industry Forecast, 2017–2025’. According to it, this market was pegged at $9.06 billion in 2017 and is going to register a CAGR of 19.9% over 2018–2025 period.
Based on geography, the market is divided into North America, Asia-Pacific, Europe, and LAMEA (Latin America, Middle East & Africa). According to it, the regional trends of the industrial and commercial LED lighting market show that the market in the Asia-Pacific region held the largest share in 2017, contributing more than one-third of the total market, owing to increased adoption of smart devices in the region. However, the LAMEA region is expected to register the fastest CAGR of 21.5% during the forecast period, owing to high adoption rate of advanced systems and solutions in various industry verticals. LAMEA region is yet in the initial phase of LED adoption, and is expected to grow at the highest CAGR during the forecast period.
The report mentions that the main factors behind the high uptake of this lighting technology include cost-saving, energy-efficiency and government campaigns towards LED adoption. The United Nations Environment Programme (UNEP) has released certain guidelines on energy-saving lighting solutions to reduce carbon emissions. With rapid urbanisation and rapid economic growth, the lighting industry is expected to grow exponentially over the next two decades, resulting in more high demand for LED based lighting. However, the downside is that voltage sensitivity and temperature dependence will somewhat hinder the market growth.
Further, the surge in need for smart lighting is expected to offer lucrative opportunities for industrial and commercial LED lighting market expansion. There has also been a focus of governments in building smart cities that will address sustainable development challenges successfully. The smart cities market was valued at $517.63 billion in 2017, and is projected to reach $2,402.12 billion by 2025, registering a CAGR of 21.28% from 2018 to 2025. Government regulations for smart city deployment through adoption of new technologies that encompasses Industry 4.0, smart energy projects, e-governance solutions, rapid urbanisation, and need for better quality of life is expected to increase smart lighting demand over the forecast period.
Throwing light on LED products, the report says that the LED lamps segment held the largest share in 2017, contributing more than half of the market, owing to increase in government campaign toward LED adoption. However, the LED fixture segment is expected to grow at the fastest CAGR of 22.1% during the forecast period.
On the basis of end user, the market is bifurcated into industrial and commercial. The industrial segment held the largest share in 2017, accounted for nearly two-thirds of the total market. However, the industrial segment is estimated to portray the fastest CAGR of 20.7% during the forecast period.
Some of the top companies profiled in the report are Eaton Corporation Plc., Cree Inc., Deco Enterprises, Inc., Dialight Plc., Osram Licht Ag, General Electric, Koninklijke Philips N.V., Toshiba Corporation, Zumtobel Group Ag, and Syska. These key players focus on garnering significant revenue, as numerous companies across industry verticals are keen to adopt flexible electronics technology. Moreover, they adopt various strategies such as collaborations, partnerships, acquisitions, product enhancement, and others to strengthen their industrial and commercial LED lighting market share.