Japan LED Lighting Market Size

The Japan LED Lighting Market is projected to experience growth over the forecast period, driven by increased demand across various sectors, particularly industrial and commercial. The market's expansion is influenced by economic growth and the rising need for LED lighting in response to the e-commerce boom during the COVID-19 pandemic. While the industrial and warehouse segments currently hold a significant share, the commercial sector is expected to maintain a leading position in terms of volume. Additionally, the market is anticipated to see substantial demand growth in agriculture and industrial lighting, with the penetration of commercial greenhouses contributing to this trend.

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Market Size of japan led lighting Industry

Japan LED Lighting Market Summary
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https://s3.mordorintelligence.com/study%20period/1629296433432_test~study_period_study_period.svg Study Period 2017 - 2030
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Size (2024) USD 3.62 Billion
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Size (2030) USD 4.58 Billion
https://s3.mordorintelligence.com/hydraulic_fluids/1629285650767_test~hydraulic_fluids_hydraulic_fluids.svg Largest Share by Indoor Lighting Industrial and Warehouse
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg CAGR (2024 - 2030) 4.00 %
https://s3.mordorintelligence.com/hydraulic_fluids/1629285650767_test~hydraulic_fluids_hydraulic_fluids.svg Fastest Growing by Indoor Lighting Agricultural Lighting

Major Players

Japan LED Lighting Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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Japan LED Lighting Market Analysis

The Japan LED Lighting Market size is estimated at 3.62 billion USD in 2024, and is expected to reach 4.58 billion USD by 2030, growing at a CAGR of 4.00% during the forecast period (2024-2030).

3.62 Billion

Market Size in 2024 (USD)

4.58 Billion

Market Size in 2030 (USD)

2.42 %

CAGR (2017-2023)

4.00 %

CAGR (2024-2030)

Largest Segment by Automotive Utility Lighting

41.17 %

value share, Headlights, 2023

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The total sales of LED were expected to reach 303.2 million by the end of 2023. The Japanese government set the policy for automakers to manufacture vehicles with automated headlamps.

Largest Segment by Automotive Vehicle Lighting

76.18 %

value share, Passenger Cars, 2023

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The volume of LED penetration in this category was expected to reach 56.6 million by the end of 2023. In 2022, approximately 6.57 million passenger cars were produced in Japan.

Largest Segment by Indoor Lighting

69.18 %

value share, Industrial and Warehouse, 2023

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The total sales of LED in this category were expected to reach 1129.0 million by the end of 2023. The commercial real estate price index in Tokyo in 2022 was 144.8, up 10.2% from 2021.

Largest Segment by Outdoor Lighting

65.97 %

value share, Public Places, 2023

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The volume of LED penetration in this category was expected to reach 178.3 million. The total revenue of Japanese amusement and theme parks in 2022 was about JPY 600 billion.

Leading Market Player

27.78 %

market share, Panasonic Holdings Corporation, 2022

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The company's eco-friendly LED lights 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.
Japan LED Lighting Market

Japan LED Lighting Industry Segmentation

Agricultural Lighting, Commercial, Industrial and Warehouse, Residential are covered as segments by Indoor Lighting. Public Places, Streets and Roadways, Others are covered as segments by Outdoor Lighting. Daytime Running Lights (DRL), Directional Signal Lights, Headlights, Reverse Light, Stop Light, Tail Light, Others are covered as segments by Automotive Utility Lighting. 2 Wheelers, Commercial Vehicles, Passenger Cars are covered as segments by Automotive Vehicle 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
Commercial
Office
Retail
Others
Industrial and Warehouse
Residential
Outdoor Lighting
Public Places
Streets and Roadways
Others
Automotive Utility Lighting
Daytime Running Lights (DRL)
Directional Signal Lights
Headlights
Reverse Light
Stop Light
Tail Light
Others
Automotive Vehicle Lighting
2 Wheelers
Commercial Vehicles
Passenger Cars
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Japan LED Lighting Market Size Summary

The Japan LED Lighting Market is experiencing a robust expansion, driven by increasing demand across various sectors, particularly industrial and commercial. The market's growth trajectory is supported by the country's economic recovery and the rising adoption of energy-efficient lighting solutions. The COVID-19 pandemic has further accelerated the demand for LED lighting, especially in the e-commerce sector, as more consumers turned to online shopping. This shift has led to a surge in LED usage in warehouses and retail spaces. The market is also witnessing a significant increase in supply, which has contributed to a decrease in LED prices, making them more accessible to a broader audience. The commercial sector holds a substantial share of the market, followed by residential, with both sectors expected to see continued growth due to urbanization and infrastructure development.

In addition to commercial and industrial applications, the residential sector is poised for expansion, driven by government initiatives and increased household formation. The penetration of LEDs in agriculture and greenhouses is also anticipated to grow, aligning with the trend towards sustainable farming practices. The automotive sector is another area of interest, with the increasing number of vehicle registrations boosting the demand for automotive LEDs. Despite challenges such as a declining population and economic fluctuations, the market remains resilient, supported by high disposable income levels and ongoing technological advancements. The market is fairly consolidated, with major players like ENDO Lighting Corporation, Koito Manufacturing Co. Ltd, Nichia Corporation, Panasonic Holdings Corporation, and Stanley Electric Co. Ltd leading the charge in innovation and market share.

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Japan LED Lighting Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)

    1. 1.1 Indoor Lighting

      1. 1.1.1 Agricultural Lighting

      2. 1.1.2 Commercial

        1. 1.1.2.1 Office

        2. 1.1.2.2 Retail

        3. 1.1.2.3 Others

      3. 1.1.3 Industrial and Warehouse

      4. 1.1.4 Residential

    2. 1.2 Outdoor Lighting

      1. 1.2.1 Public Places

      2. 1.2.2 Streets and Roadways

      3. 1.2.3 Others

    3. 1.3 Automotive Utility Lighting

      1. 1.3.1 Daytime Running Lights (DRL)

      2. 1.3.2 Directional Signal Lights

      3. 1.3.3 Headlights

      4. 1.3.4 Reverse Light

      5. 1.3.5 Stop Light

      6. 1.3.6 Tail Light

      7. 1.3.7 Others

    4. 1.4 Automotive Vehicle Lighting

      1. 1.4.1 2 Wheelers

      2. 1.4.2 Commercial Vehicles

      3. 1.4.3 Passenger Cars

Japan LED Lighting Market Size FAQs

The Japan LED Lighting Market size is expected to reach USD 3.62 billion in 2024 and grow at a CAGR of 4.00% to reach USD 4.58 billion by 2030.

In 2024, the Japan LED Lighting Market size is expected to reach USD 3.62 billion.

Japan LED Lighting Market Report Snapshots