Energy Efficient Lighting Market by Source (High-intensity Discharge Lamps (HID), Linear Fluorescent Lamps (LFL), Light Emitting Diodes (LED), and Others), Application (Home, Commercial, and Industrial), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2022–2030

Global Energy Efficient Lighting Market Analysis

The global energy efficient lighting market size is predicted to garner a revenue of $93,303.0 million in the 2022–2030 timeframe, growing from $46,153.8 million in 2021, at a healthy CAGR of 8.1%.

Market Synopsis

Growing technological advancements in lighting systems provide not only energy efficiency but also additional benefits such as ventilation, light ambiance, and warmth. Furthermore, these lighting devices add aesthetic beauty to the home while reducing the need for artificial heating and cooling, increasing product demand. Furthermore, energy efficient lighting reduces energy needs and is a more cost-effective light source than traditional lighting methods. Better energy savings compared to other kinds of lighting is expected to drive the energy efficient lighting market. The market has changed dramatically in the last five years, with many innovative and adaptable technologies entering the market. Moreover, the increasing use of LEDs in the automotive industry may open up new opportunities for the energy efficient lighting market.

However, initial cost of equipment and implementation is very high. Energy efficient lights are 20 times more costly than normal conventional incandescent lamps. Therefore, it will impact global market growth.

According to the regional outlook, the Asia-Pacific energy efficient lighting market is expected to create massive growth opportunities for market investors by growing at a CAGR of 8.7% during the review period.

Energy Efficient Lighting Overview

Energy efficient lighting entails using more light from fewer lights by substituting high power usage lights such as incandescent, high discharge lamps, and so on. This is also used in various control technologies such as GPRS, GSM, and SCADA. It is also replacing high-power lighting accessories with low-power devices like electronic ballasts and fixtures. Energy efficient lighting entails replacing the traditional lighting (such as incandescent lamps) with energy efficient lights including fluorescent lamps, CFL lighting, and LED lamps. It also includes the proper additional lighting such as timers, sensor, and so on. It includes automatically trying to turn off lights if they are not in use, particularly during the day. These energy-saving schemes can be used for external lighting, interior lighting in residential buildings, and interior lighting in commercial buildings. These programmers not only reduce energy consumption but also improve lighting quality. Incandescent lamps waste 90% of their electricity as heat rather than light, and they consume 3-5 times more power. Thus, replacing these bulbs with energy-saving bulbs results in an energy-efficient lighting system. There are two kinds of energy-saving lights or blubs.

COVID-19 Impact on Energy Efficient Lighting Market

The global energy efficient lighting market is predicted to witness a low growth rate during the outbreak of the COVID-19 pandemic, owing to shortage of electric components supply due to coronavirus outbreak across the globe. China is the largest supplier of electronic components and lack of proper supply of components due to strict government guidelines and lockdown imposition has resulted in the postponement of residential projects that are running in the countries including India and China. Due to delayed construction projects, the LED market revenue experienced a decrease in its growth rate.

LED market growth has been hampered by gradual manufacturing by original equipment manufacturers (OEMs) and a decrease in sales for lighting systems as well as other electronics devices. The global distribution system has been seriously affected by component and material shortages. Furthermore, cuts in capital budgets and delays in planned projects in various industries hampered the global economy.

During the pandemic, however, the demand for UV LED from the medical industry increased. Furthermore, as a result of new government initiatives around the world, market players invested in R&D of smart lighting systems. As a result, the LED market was expected to gain traction by the end of 2021. Moreover, several companies operating in the energy efficient lighting market, such as Advanced Lighting Technologies, are coming forward with their strategic steps to help society during the COVID-19 pandemic. For instance, Advanced Lighting Technologies, in August 2020, announced that it is following government guidelines pertaining to working during the pandemic and that the company is fully operational for delivering their lighting products to customers, projects, and infrastructure development. These key factors may generate investment opportunities for the energy efficient lighting industry in the global marketplace.

Greater Energy Savings in Energy Efficient Lightning Compared to that in Other Forms of Lighting Drives the Energy Efficient Lighting Market Globally

The energy efficient lighting industry is witnessing massive growth mainly due to increasing adoption of lighting that is efficient, has long shelf-life, and enables energy saving. Moreover, various government initiatives to adopt LEDs for better efficiency will fuel the growth of energy efficient lighting market. For instance, according to the U.S. Department of Energy (DOE), it was estimated that, in 2020, approximately 75% of energy efficient lighting shipping will be towards LEDs. Furthermore, key players are opting for effective strategies such as strategic collaborations and product launches to stronghold their presence into local as well as international market. For instance, in June 2020, Signify N.V., announced that they are going to launch new and updated Philips Hue products for enhancing its portfolio. There are different new range of products that includes Philips Hue White Ambiance indoor light fixture, Philips Hue White A21 bulb, Philips Hue Light strip Plus, and Philips Hue Bloom table lamp. These advancements may lead to an increase in the demand for energy efficient lighting in the global market.

Now-a-days governments across the globe especially in developing nations such as China, Indonesia, and India are focusing on the infrastructure development, including modification of current structures and therefore demand for LED solutions has increased in recent times. Moreover, investment in smart city projects over the times also increases in countries such as Singapore, India, China, Spain, the U.A.E., and Austria. For instance, the government of Dubai (U.A.E.) announced that they are going to start project of making Dubai, a smart city that includes more than 100 initiatives for developing transport, communications, and civil infrastructure. These types of rising infrastructure development projects across the globe has been a major driving factor for the growth of the energy efficient lighting market. Therefore, all such aspects and developments are projected to gain traction for energy efficient lighting.

To know more about global energy efficient lighting market trends, get in touch with our analysts here.

High Implementation and Equipment Cost Might Restrict the Global Energy Efficient Lighting Market Growth

Excessive equipment costs, combined with high implementation costs around the world, may restrain global demand for energy efficient lighting, and hamper the global energy efficient lighting market throughout the forecast period. Moreover, strict government regulations on using LEDs is one of the factors that hampers the market growth. For instance, The Food and Drug Administration now has made mandatory that all LEDs meet the FD2 standard. This category includes "LED product lines in use for general or localized lighting, such as lighting and bulbs." In other words, when importing an LED device, the importing country must provide the name and physical address of the original manufacturing plant. All such factors may hamper the growth of the global market.

The Growing Attention towards Smart LED Lighting Solutions Brings New Opportunities in the Energy Efficient Lighting Market

The energy efficient lighting industry is growing at a very fast pace due to the rising adoption of smart LED solutions. LED lighting providers are effectively building smart lights for residential, commercial, industrial, architectural, highways & roadways, public places, and other applications. For instance, NICHIA CORPORATION, announced in Jan, 2021, that they are going to launch a dually function new LED that will provide both high doses of energy and white light and it geared for inactivation of various prevalent bacteria. Due to increase in awareness of health among the people, it will increase the adoption of such types of LEDs. Furthermore, the penetration towards high bay lights, panel lights, tunnel lights, and troffer lights will increase the demand for LEDs across the global. For instance, Technical Consumer Products, Inc., in 2020, announced that they are going to launch selectable commercial recessed downlight and it is featured with choices of temperature wattages and colors and therefore best suited for corporate sectors. Thus, increasing penetration of smart LEDs offers huge opportunities in the forecast period.

In addition to this, the exponentially increased adoption of smart LED solutions is majorly attributed its crucial advantages such as it is energy efficient and it can connect with mobile phones, so it can monitor from anywhere. LED lighting providers are effectively building smart lights for residential, commercial, industrial, architectural, highways & roadways, public places, and other application. For instance, ABB, multinational company in Switzerland, in 2018, announced that they are in partnership with Signify Holding (formerly known as Philips Lighting) and the main aim of the collaboration is development of applications, systems, and devices that can interact with leading smart lighting ecosystem and it has attracted many of the market’s leading technology providers including Google, Amazon, and Apple. Owing to these factors, energy efficient lighting may help in remarkable revenue generation, during the forecast years. Thus, such factors create an opportunity to gain major pull in the coming years for energy efficient lighting market.

To know more about global energy efficient lighting market opportunities, get in touch with our analysts here.

Global Energy Efficient Lighting Market, by Source

Based on source, the energy efficient lighting market has been segmented into high-intensity discharge lamps (HID), linear fluorescent lamps (LFL), light emitting diodes (LED,) and others of which, light emitting diodes (LED) sub-segment is expected to have the fastest growth during the forecast period.  

Global Energy Efficient Lighting Market Share, By Source, 2021

Source: Research Dive Analysis

In 2030, the global light emitting diodes (LED) sub-segment will be worth more than $42,659.0 million. A light emitting diode is a semiconductor light source with two leads. It emits light when activated because it is a p-n junction diode. LEDs' recent advancements enable them to be used in environmental lighting. LEDs have seen a surge in demand due to the advantages they provide over incandescent light sources. Lower energy consumption, improved physical robustness, longer lifetime, faster switching, and smaller size are among them. LEDs have a variety of characteristics. Air transportation lighting, backlights, automobiles, ambient lighting, crime investigation, universal healthcare, marketing, signals & road signs, lighted screensavers, camera flashes, portable devices, and electronic devices are all examples of their applications. LEDs have emerged as a powerful lighting source; however, they are more costly and involve more precise heat & power management than incandescent bulbs. Consumers' growing awareness of the advantages of LEDs' longer lifespan has led to their widespread adoption. The market is also expected to benefit from LED lamp price reductions, increased application in display back lighting, and the high efficacy offered by LED lamps. Thus, such factors will create huge opportunities in the coming years for energy efficient lighting market.

Global Energy Efficient Lighting Market, by Application

Based on application, the energy efficient lighting market has been sub-segmented into home, commercial, and industrial of which, commercial sub-segment is expected to have the dominant share during the forecast period.

Global Energy Efficient Lighting Market Share, By Application, 2021

Source: Research Dive Analysis

In 2030, the global commercial sub-segment will be worth more than $36,022.4 million. The main factor for the sub-segment growth is owing to the penetration of LEDs in commercial sectors. Moreover, key players operating in the market are offering various energy efficient lighting solutions according to uses. For instance, Philips offers lighting solutions for commercial use and their products consume less energy with low-cost LED lighting and controls. Their lighting options cut capital expenditure, plan outages & maintenance, optimize labor costs abide by the national & international safety standards, deliver lower carbon footprint, and minimize environmental impact. All such factors are expected to promote the adoption of energy efficient lighting in commercial use and thereby accelerating the growth during the forecast period.

Global Energy Efficient Lighting Market, Regional Insights:

The energy efficient lighting market was inspected across North America, Europe, Asia-Pacific, and LAMEA.

 Global Energy Efficient Lighting Market Size & Forecast, By Region, 2021-2030 (USD Million)

Source: Research Dive Analysis

The Market for Energy Efficient Lighting in Europe to Hold the Maximum Revenue

Europe energy efficient lighting market is anticipated to generate maximum revenue during the forecast time period and reach $29,959.6 Million by 2030, with a CAGR of 8.8%. The region is considered as the most lucrative market for energy efficiency lights, owing to high production of energy-efficient lamps. This is primarily due to the presence of major manufacturers, strict energy efficiency regulations, and high power consumption in industrial & residential applications. Furthermore, the growing demands for Energy Performance Certificates, which necessitate commercial spaces to adhere to energy-efficient requirements and processes, fuel regional market growth.

According to the European Efficient Residential Lighting INitiative (ENERLIN), more than 14% electricity consumption in Europe is due to consumption of lights and inefficient lights can cause flow of unessential energy & carbon dioxide. Therefore, using CFLs (compact fluorescent lamps) in place of GLS (general lighting service) can save energy up to 11 TWh and 1.2 Mt of less emission of CO2 per annum. Also, Europe was one of the first regions that completely banned the use of ordinary lighting that can lead to huge hike in LED fixtures and lighting. These key factors are responsible for the increased adoption of the energy efficiency lighting technologies among the European countries, in the forecast period. In addition to this, the energy efficiency lighting platform providers operating in the Europe are following strategic collaborations for the novel technological innovation and acquire the prominent position in the marketplace. All such factors are expected to drive the Europe energy efficient lighting market and witness noticeable growth.

Competitive Scenario in the Global Energy Efficient Lighting Market

Product launches and mergers & acquisitions are common strategies followed by major market players.

Source: Research Dive Analysis

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