Japan Indoor LED Lighting Market Size

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).

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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

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.