Market Size of japan indoor led lighting Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2030 |
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Market Size (2024) | USD 1.65 Billion |
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Market Size (2030) | USD 1.83 Billion |
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Largest Share by Indoor Lighting | Industrial and Warehouse |
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CAGR (2024 - 2030) | 1.82 % |
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Fastest Growing by Indoor Lighting | Agricultural Lighting |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Japan Indoor LED Lighting Market Analysis
The Japan Indoor LED Lighting Market size is estimated at 1.65 billion USD in 2024, and is expected to reach 1.83 billion USD by 2030, growing at a CAGR of 1.82% during the forecast period (2024-2030).
1.65 Billion
Market Size in 2024 (USD)
1.83 Billion
Market Size in 2030 (USD)
-0.49 %
CAGR (2017-2023)
1.82 %
CAGR (2024-2030)
Largest Segment by Indoor Lighting
69.18 %
value share, Industrial and Warehouse, 2023
In 2021, the area under class 1-3 regular warehouses in Japan reached a decade-high of approximately 61.61 million square meters, increasing from 38.8 million square meters in 2012.
Largest Segment by Commercial
46.50 %
value share, Office, 2023
In Q2 of 2022, overseas investment in Japanese commercial property rose by 37% Y-o-Y, driven by a surge in transactions in the office sector. In 2021, over 3,000 retail establishments were in operation, out of which 24 were new openings.
Fastest-growing Segment by Indoor Lighting
5.97 %
Projected CAGR, Agricultural Lighting, 2024-2030
The number of vegetable vertical farms in Japan grew from 93 in 2011 to 390 in February 2021. Thus, commercial greenhouses is expected to promote agriculture lighting in the coming years.
Fastest-growing Segment by Commercial
1.40 %
Projected CAGR, Retail, 2024-2030
The luxury goods sector in Japan is the third largest in the world after the US and China. Ginza high street rents rose by 3.8% Q-o-Q to JPY 250,700 per tsubo per month.
Leading Market Player
34.82 %
market share, Panasonic Holdings Corporation, 2022
Panasonic holds the largest market share in Japan. The company has eco-friendly LED lights that are valued for achieving energy savings of 50% or more compared to older fluorescent lighting.
Increasing development in the industrial sector and commercial office demand states to drive market growth
- In terms of value share, in 2023, the industrial and warehouse segment accounts for a majority share, followed by commercial. Japan's economy expanded more than expected in the opening quarter of 2019. Japan's economy grew at an annual rate of 1.8%. This has led to a major demand for LED lighting in all sectors, mainly in the industrial and commercial segments. The COVID-19 era increased the demand for e-commerce goods, leading to more demand for LED lighting, majorly in B2C. Currently, the market demand is increasing for both sectors. In 2022, the supply increased, leading to low LED pricing. In Q4 2022, the commercial property price index for retail properties, warehouses, factories, apartment buildings, and commercial and industrial land in Japan stood at 146.6, down from 155.4 points in the previous quarter.
- In volume share, commercial accounts for the majority of the share, and then residential stands at the second spot. Over the next six months in 2023, new supply is expected to triple from 2022, at around 1.5 times higher than the 10-year historical average in Tokyo Central 5 Wards Grade A office. With the onset of the pandemic in 2020, residential land prices plunged 0.5% in 2021. However, despite the long-term trend, housing demand remained strong in the country’s metropolitan areas. Sapporo is expected to have major residential demand, having an 11.8% growth rate in 2023.
- In terms of development, the market is expected to see major demand growth in agriculture and industrial lighting. In terms of area, only 12% of Japan’s land was dedicated to agriculture in 2020. In the coming year, this number is expected to decrease further, leading to the penetration of commercial greenhouses, which will cater to more demand for LEDs.
Understand The Key Trends Shaping This Market
Japan Indoor LED Lighting Industry Segmentation
Agricultural Lighting, Commercial, Industrial and Warehouse, Residential are covered as segments by Indoor Lighting.
- In terms of value share, in 2023, the industrial and warehouse segment accounts for a majority share, followed by commercial. Japan's economy expanded more than expected in the opening quarter of 2019. Japan's economy grew at an annual rate of 1.8%. This has led to a major demand for LED lighting in all sectors, mainly in the industrial and commercial segments. The COVID-19 era increased the demand for e-commerce goods, leading to more demand for LED lighting, majorly in B2C. Currently, the market demand is increasing for both sectors. In 2022, the supply increased, leading to low LED pricing. In Q4 2022, the commercial property price index for retail properties, warehouses, factories, apartment buildings, and commercial and industrial land in Japan stood at 146.6, down from 155.4 points in the previous quarter.
- In volume share, commercial accounts for the majority of the share, and then residential stands at the second spot. Over the next six months in 2023, new supply is expected to triple from 2022, at around 1.5 times higher than the 10-year historical average in Tokyo Central 5 Wards Grade A office. With the onset of the pandemic in 2020, residential land prices plunged 0.5% in 2021. However, despite the long-term trend, housing demand remained strong in the country’s metropolitan areas. Sapporo is expected to have major residential demand, having an 11.8% growth rate in 2023.
- In terms of development, the market is expected to see major demand growth in agriculture and industrial lighting. In terms of area, only 12% of Japan’s land was dedicated to agriculture in 2020. In the coming year, this number is expected to decrease further, leading to the penetration of commercial greenhouses, which will cater to more demand for LEDs.
| Indoor Lighting | |||||
| Agricultural Lighting | |||||
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| Industrial and Warehouse | |||||
| Residential |
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Japan Indoor LED Lighting Market Size Summary
The Japan Indoor LED Lighting Market is experiencing a steady growth trajectory, driven by increasing demand across industrial, commercial, and residential sectors. The market is characterized by a significant share held by the industrial and warehouse segments, with commercial lighting also contributing substantially. The economic expansion in Japan has spurred demand for LED lighting, particularly in the wake of the COVID-19 pandemic, which accelerated the shift towards e-commerce and heightened the need for efficient lighting solutions. The market is witnessing a surge in supply, leading to competitive pricing and increased penetration of LED technology in various sectors. The construction and development of new properties, alongside government initiatives promoting energy efficiency, are expected to further bolster the market's growth.
The market landscape is fairly consolidated, with major players like Endo Lighting Corporation, Nichia Corporation, OSRAM GmbH, Panasonic Holdings Corporation, and Toshiba Corporation dominating the scene. These companies are actively innovating and expanding their product offerings to meet the evolving demands of the market. The residential sector, despite challenges such as declining population and household sizes, continues to show resilience with strong demand in metropolitan areas. Additionally, the agricultural sector is anticipated to see increased LED adoption due to the expansion of commercial greenhouses. Overall, the Japan Indoor LED Lighting Market is poised for continued growth, supported by technological advancements, strategic investments, and a focus on sustainability.
Japan Indoor LED Lighting Market Size - Table of Contents
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1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)
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1.1 Indoor Lighting
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1.1.1 Agricultural Lighting
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1.1.2 Commercial
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1.1.2.1 Office
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1.1.2.2 Retail
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1.1.2.3 Others
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1.1.3 Industrial and Warehouse
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1.1.4 Residential
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Japan Indoor LED Lighting Market Size FAQs
How big is the Japan Indoor LED Lighting Market?
The Japan Indoor LED Lighting Market size is expected to reach USD 1.65 billion in 2024 and grow at a CAGR of 1.82% to reach USD 1.83 billion by 2030.
What is the current Japan Indoor LED Lighting Market size?
In 2024, the Japan Indoor LED Lighting Market size is expected to reach USD 1.65 billion.
