The LED lighting market is primarily driven by benefits offered by LED lights over incandescent and fluorescent lamps. In additions, the energy efficiency of LED lights, higher brightness, and longer life span are some of the major reason offers tremendous market opportunities for LED lighting in the coming years. Continuous new product introduction by manufacturers such as Phillips and GE with innovative technology are attracting customer attention globally. Screen and display backlighting market development are likely to open new doors for the LED lighting demand.

Consumers want cost-effective, energy-saving LED lighting

Lighting consumes approximately 15% of total global power consumption. Moreover, lights produce around 5% of global carbon emission. Thus, the United Nations Environment Programme (UNEP) has released certain guidelines on energy-saving lighting solutions to reduce carbon emissions. With rapid urbanization 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. Thus, need for more LED-based lighting for effective energy saving and cost saving is expected to drive the Industrial and commercial LED lighting market growth in the coming years.

Conventional lighting consumes a high amount of energy and requires a glass bulb to contain essential coatings and/or gases. For instance, fluorescent lamps generate light using a gas discharge to excite phosphors; high-intensity discharge (HID) lamps utilize an electric arc discharge, while incandescent lamps rely on a heated filament to emit light. In case of an LED, it has the ability to directly convert electrical energy into light energy, which characterizes it with less power consumption and higher reliability. In addition, LEDs have become highly efficient over traditional lighting, owing to characteristics such as extremely small & compact size and prolonged durability, which is expected to increase LED demand in industrial and commercial sector.

Smart lighting solutions are expected to provide huge momentum in the process of building smart cities. Smart lighting addresses sustainable development challenges successfully, thereby creating ample opportunities for the industrial and commercial LED lighting market. 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. 

Governments have been playing a major role in smart cities market through their regulations and initiatives focused on deployment of smart services as a major part of their infrastructure. Government regulations for smart city deployment supported by adoption of new technologies that support Industry 4.0, smart energy projects, & e-governance solutions, rapid urbanization, and need for better quality of life is expected to increase smart lighting demand over the forecast period.