Global Energy Efficient Lighting Market to Surpass $93,303.0 Million by 2030, Owing to the Greater Energy Savings and Long Shelf-life of Energy Efficient Lighting

Almost 20% of the total energy production of the world is utilized for lighting. For making efficient use of electricity, several countries have been opting to switch to energy efficient lighting systems that are cost-effective, reliable, and energy-saving. The lighting sector has advanced in various ways with ground-breaking technologies to optimize the prevailing controls and lighting systems for plummeting the energy consumption and enhancing lighting quality. The concept of energy efficient lighting is a novel invention which satisfies the need for both saving energy as well as efficient lighting quality.

What is Energy Efficient Lighting?

The energy efficiency lighting system offers the vital illumination level required for the application it has been developed for, while using minimum amount of power. Basically, energy efficient lighting can save electricity while sustaining good quality and quantity of the light as compared to conventional lighting methods. Thus, the demand for energy savings lighting is increasing across the globe, which is driving the growth of the global energy efficient lighting market.

Energy efficient lighting includes the replacement of conventional lights (for instance, incandescent lamps) with energy efficient systems including CFL lamps, fluorescent lamps, and LED lamps. It also includes suitable lighting controls like timer controls, Passive Infrared (PIR) motion sensor switch, ultrasonic sensors with controls, and many more.

What is Driving the Growth of the Energy Efficient Lighting Market?

Lighting is the vital necessity of any facility, including domestic, commercial and industrial, and it influences the people’s day-to-day chores. Around 3 to 5% of the total power consumption for lighting is used by industries. On the other hand, almost 50 to 90% of the total power consumption for lighting is used by the domestic sector and it might go nearly up to 20 to 40% in information technology complexes, commercial or building sectors, and hotels. In recent years, the gap between energy generation numbers and demand numbers is a subject of concern. The shortage of power supply indicates the inefficiency of power supply system to fulfill the power demand, hence denoting the dearth of conservation of energy. The implementation of energy efficient lighting systems is an ideal solution for this problem.

Energy efficient lighting has become vital for the following reasons:

• To decrease electricity consumption, and thus cut down electricity bills
• To save electricity
• To lower greenhouse releases
• To attain peak load reduction

In 2007, the U.S. has passed new energy efficiency guiding principle for all bulbs, which successfully ruled out the least efficient incandescent bulbs. As per the U.S. Department of energy, speedy implementation of LED bulbs is capable of saving tons of greenhouse gases from releasing into the environment and can also aid in eliminating the need to construct 40 new power plants.

Energy Efficient Lighting Market Trends and Developments

The invention of Compact Fluorescent Lights (CFL) and Light Emitting Diode (LED) bulbs has revolutionized energy-efficient lighting. Moreover, several governments and key industry players in the energy-efficient lighting market are undertaking various activities, such as new product development, adoption of new technologies, mergers and acquisitions, partnerships, and many more, to obtain a robust position in the industry. For instance,

• In January 2021, the chiefs of Port Alberni, a city located on Vancouver Island in the province of British Columbia, Canada, have declared that they will be changing the lighting at the Alberni Valley Multiplex with more energy-efficient LED lighting.
   
• In February 2021, DesignLights Consortium, a non-profit organization dedicated to accelerating the widespread adoption of high-performing commercial lighting solutions, has declared the new membership of its Industry Advisory Committee (IAC), an 18-member committee that aims to support the mission and strategic direction of the DLC to drive efficient lighting by the means of collaboration, education, and expertise in 2021 and 2022.
   
• In August 2021, Signify, the global leader in connected LED lighting systems, software, & services, announced the launch of the first Philips LED A-class bulbs that meet the more stringent EU Ecodesign & Energy labeling regulations. The new Philips LED bulbs have a longer lifespan and provide consumers with a smart investment. These energy efficient lights are available in 40W and 60W equivalents.
   
• In January 2022, Orion Energy Systems, Inc., a provider of energy-efficient LED lighting, IoT and control systems, completed the acquisition of Stay-Lite Lighting, a nationwide lighting & electrical maintenance service provider. Orion’s aim with this acquisition is to meet the customer demand for lighting and electrical services, and expand its business.

Current and Future Scope of the Energy Efficient Lighting Market

According to a report by Research Dive, the global energy efficient lighting market is foreseen to gather a revenue of $93,303.0 million by 2030, at a CAGR of 8.1% from 2022 to 2030. The growth of the market is chiefly owing to the growing adoption of efficient lighting systems that contribute energy saving and have extended shelf-lives. Furthermore, several government bodies have launched various initiatives to promote the adoption of LEDs for better efficiency, which is also triggering the market growth. Moreover, the mounting awareness about smart LED lighting solutions are likely to develop rewarding opportunities for the global energy efficient lighting market in the coming years.

LED lighting manufacturers are efficiently producing smart lights for architectural, commercial, residential, industrial, highways and roadways, public places, and other application areas. For instance, in February 2021, the Bhubaneswar Municipal Corporation (OMC) has mounted 774 LED lights on 387 poles, and 3 high-mast lights at Keshura, Lingipur, and Pandra. Such initiatives are also likely to fuel the growth of the global market.

Geographically, the Europe region is predicted to hold the maximum revenue in the energy efficient lighting market owing to the presence of major manufacturers, the high production of energy-efficient lamps, and strict energy efficiency regulations in the region.

The key players of the global energy efficient lighting market include Eaton, General Electric, Philips, Toshiba Corporation, Schneider Electric, ABB, Advanced Lighting Technologies Australia Inc., Bridgelux, NICHIA CORPORATION, and Digital Lumens, Inc.

Impact of COVID-19 Pandemic on the Market

The unprecedented rise of the COVID-19 pandemic has hampered the growth of the global energy efficient lighting market; owing to dearth of electric components supply due to closure of production industries amidst lockdown in various regions. Besides, strict government lockdown measures have led to the postponement of residential as well as commercial projects, which has affected the demand for energy efficient lighting systems amidst the pandemic period.

The Way Ahead for the Energy Efficient Lighting Market

The growing importance for energy-efficient lighting in various application areas are likely to fact pace the adoption of these advance lighting systems. Although, these lighting systems are expensive, they make a better choice against traditional or conventional lightings. This clearly indicates that the energy efficient lighting market is going to reach newer heights in the coming future.