The Global Electric Lighting Equipment Market size is expected to reach $173.2 billion by 2030, rising at a market growth of 7.0% CAGR during the forecast period.In the year 2022, the market attained a volume of 466.6 million units, experiencing a growth of 4% (2019-2022).
The usage of LED lights has increased across various commercial sectors due to the government's encouragement of investments in energy-efficient lighting technologies through various laws. Therefore, the commercial segment would register approximately 1/5th share in the market by 2030. In addition, 18 to 40 percent of the electricity utilized in commercial buildings is consumed by illumination, compared to just a few in houses. The market is growing due to the increased interest in energy conservation. Furthermore, LED lighting is being increasingly used in countries all over the world. For instance, the 250,000 streetlights in New York City were upgraded to energy-efficient LEDs, and the project has been finished by 2017.
The major strategies followed by the market participants are Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. In June, 2022, Signify acquired Fluence to solidify Signify’s global agriculture lighting growth platform and strengthened its position in the attractive North American horticultural lighting market. Additionally, in June, 2021, Acuity Brands, Inc. signed an agreement to purchase North American Digital Systems (DS) business from ams OSRAM to enable the company to expand its advanced LED driver portfolio.
Based on the Analysis presented in the KBV Cardinal matrix; Eaton Corporation PLC is the forerunner in the Market. In June, 2021, Eaton completed the acquisition of Cobham Mission Systems to expand its Aerospace fuel systems offerings. Companies such as Toshiba Corporation, Signify N.V., Hubbell Incorporated are some of the key innovators in the Market.
Energy-efficient lighting involves utilizing fewer lights by replacing high-power-consumption lights such as incandescent, high-discharge, etc. This technique is also utilized in GPRS, GSM, and SCADA, among other control technologies. Additionally, it is substituting low-wattage equipment like electronic ballasts and fixtures for high-wattage lighting accessories. Energy-efficient lighting replaces traditional lighting (incandescent bulbs) with fluorescent, CFL, and LED lighting. This market may open new growth prospects due to the growing usage of LEDs in the automotive sector. The development of lighting technology increases energy efficiency and offers extra advantages like ambient lighting, ventilation, and warmth.
The ability of lights to link with IoT devices and generate a range of ambient lighting using only smartphones or tablets has expanded their popularity and demand in both commercial and residential spaces. They can also be programmed to turn on and off and track their energy consumption. The platform connection with Google Assistant, Amazon's Alexa, Apple's Siri, or Microsoft's Cortana can also provide voice control of smart lights. Therefore, it is anticipated that the demand for LED-based smart lights will increase throughout the projected period due to various government measures to encourage their use.
Due to stringent government policies, which include rules and regulations relating to environmental measures, investors are having difficulty setting up newer light industrial centers in several countries. Before establishing a factory, investors or manufacturers encounter several other obstacles, including high capital costs, high investments in the R&D sector, inefficient raw material supply, inefficient logistics, and a lack of sophisticated manufacturing equipment. If there is a lack of skilled labor or a problem in recruiting and training employees, it can hinder the market's production capacity and overall growth. Hence, all of these elements may hamper the growth of the market in the coming years.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions.
Based on the sales channel, the market is categorized into online, and offline. In 2022, the online segment acquired a substantial revenue share in the market. The online platform enables manufacturers and retailers of lighting equipment to connect with a global audience without the limitations of physical stores. Sales and brand awareness may rise as a result of this enhanced reach. Online shopping offers consumers the convenience of browsing and purchasing lighting products from the comfort of their homes. This convenience can encourage more people to investigate and buy electric lighting equipment, particularly those without access to physical stores.
By type, the market is classified into general lighting, automotive lighting, and back lighting. In 2022, the general lighting segment held the highest revenue share in the market. General lighting is divided into LED and traditional Lighting according to product segmentation. LED lighting will experience significant adoption during the anticipated period. Traditional lighting sources, such as CFLs, LFLs, and HID lights, have historically been employed in all application areas due to their low cost and ease of installation and will also be used in upcoming years.
On the basis of application, the market is divided into residential, commercial and others. In 2022, the residential segment dominated the market with maximum revenue share. Future development of energy-efficient lighting with sophisticated power management systems, which reduce standby power usage, and environmentally friendly manufacturing processes are also potential for makers of electric lighting equipment. In this market, these factors combined to create a significant demand for illumination in the residential segment.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 101.5 Billion |
| Market size forecast in 2030 | USD 173.2 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 7% from 2023 to 2030 |
| Number of Pages | 351 |
| Number of Table | 673 |
| Quantitative Data | Volume in Million Units; revenue in USD Million, and CAGR from 2019 to 2030 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market share analysis, Companies Strategic Developments, Company Profiling |
| Segments covered | Type, Application, Sales Channel, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific region led the market by generating the highest revenue share. The growth of the electric lighting equipment market in the Asia Pacific region is influenced by many variables. These include the rising demand for better and more effective lighting solutions, the abundance of LED package and chip companies, and the quick urbanization of nations like India, China, and Japan.
Free Valuable Insights: Global Electric Lighting Equipment Market size to reach USD 173.2 Billion by 2030
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Hubbell Incorporated, Eaton Corporation PLC, Stanley Electric Co. Ltd., Acuity Brands Lighting, Inc., ams-OSRAM AG, Savant Systems, Inc., Toshiba Corporation, Nichia Corporation, Everlight Electronics Co., Ltd., and Signify N.V.
By Type(Volume, Million Units, USD Million, 2019-2030)
By Sales Channel(Volume, Million Units, USD Million, 2019-2030)
By Application(Volume, Million Units, USD Million, 2019-2030)
By Geography(Volume, Million Units, USD Million, 2019-2030)
The Market size is projected to reach USD 173.2 billion by 2030.
Rising Demand for Energy-Efficient Lighting are driving the Market in coming years, however, Challenges in Establishing Newer Manufacturing Hubs restraints the growth of the Market.
Hubbell Incorporated, Eaton Corporation PLC, Stanley Electric Co. Ltd., Acuity Brands Lighting, Inc., ams-OSRAM AG, Savant Systems, Inc., Toshiba Corporation, Nichia Corporation, Everlight Electronics Co., Ltd., and Signify N.V.
In the year 2022, the market attained a volume of 466.6 million units, experiencing a growth of 4% (2019-2022).
The Offline segment is leading the Market by Sales Channel in 2022; thereby, achieving a market value of $108.2 billion by 2030.
The Asia Pacific region dominated the Market by Region in 2022, and would continue to be a dominant market till 2030; thereby, achieving a market value of $66.8 billion by 2030.
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