As per Allied Market Research report, the global LED industry was accounted for $78.69 billion in 2020, and is expected to reach $192.68 billion by 2030, growing at a CAGR of 8.2% from 2021 to 2030.
Major Determinants of the Market Growth
Rise in demand for cost-effective and energy-saving LED lighting and government initiatives toward LED adoption have boosted the growth of the global LED market. However, high initial cost of LED lighting systems and voltage temperature & sensitivity dependence hinder the market growth. On the contrary, increase in need to replace traditional lighting system would open new opportunities in the future.
Covid-19 Scenario:
- The Covid-19 pandemic forced governments to impose strict restrictions on workforce and travel. This hampered the supply chain & production and reduced demand & spending across several sectors.
- The decline in infrastructure development activities and installation hampered the market.
- However, the demand for UV LED lights from the medical industry increased during the pandemic. Thus, several market players invest heavily in smart lighting system.
The LED Lamps Segment Dominated the Market
By product, the LED lamps segment held the largest share in 2020, accounting for more than half of the global LED market. However, the LED fixtures segment is estimated to register the highest CAGR of 8.9% during the forecast period, due to their long-life rating and adoption for visual lighting.
The Outdoor Lighting Segment to Portray the Highest CAGR Through 2030
By application, the outdoor lighting segment is projected to manifest the highest CAGR of 9.3% from 2022 to 2031, due to rise in need for longer service life of light panel and bulbs in outdoor applications. However, the indoor lighting segment held the largest share in 2020, accounting for more than three-fourths of the global LED market, owing to flexible design, prolonged durability of LEDs, and energy efficiency.
Asia-Pacific, followed by Europe and North America, Held the Highest Share
By region, the global LED market across Asia-Pacific, followed by Europe and North America, dominated in 2020, accounting for nearly two-fifths of the market. In addition, the region is anticipated to showcase the highest CAGR of 9.4% during the forecast period, owing to rise in demand for low-power consumption lighting solutions.
