Market Trends of led lighting Industry
Increasing energy-efficient construction and the rise in global sales of EVs are expected to drive the growth of the market
- The world's population reached 7.89 billion people in 2021. Global employment figures reached 3.32 billion in 2022 from 3.16 billion in 2015, an increase of almost 0.13 billion. The use of LEDs is expected to increase as more knowledge is spread throughout the population as a result of the rise in the number of employed individuals.
- Despite the COVID-19 pandemic, worldwide spending on energy-efficient construction increased by an exceptional 11.4% in 2020 to over USD 184 billion, up from USD 165 billion in 2019. The yearly growth rate for investments in energy efficiency surpassed 3% for the first time since 2015. The requirement for additional rooms in a house is anticipated to result in increased demand for LEDs due to the rise in the development of energy-efficient buildings and to meet the residential needs of the expanding population.
- In 2022, there were 143.96 million automobiles produced worldwide. In 2023, that number was projected to rise to 150.92 million. Global sales of electric vehicles exceeded 10 million in 2022, and it was predicted that sales in 2023 would rise by another 35% to a total of 14 million. The market share of electric cars rose from 4% in 2020 to 14% in 2022 as a result of this quick expansion. Due to the fact that electric cars need more processors per vehicle than conventional automobiles, there has also been an increase in the need for automotive semiconductor chips as more of them are used. The rise in semiconductor demand in the automotive industry is likely to help the market for LED lighting.
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The market is driven by increasing population, rising energy-efficient construction of buildings, and government programs to promote LED penetration
- The world's population reached 8 billion people in 2023, up from 7.79 billion in 2020. The largest countries by population included China (1.45 billion), India (1.42 billion), and the US (336.8 million). Furthermore, global employment increased to 3.32 billion people in 2022 from 3.16 billion in 2015, an increase of almost 0.13 billion people. The use of LEDs will increase as more knowledge is spread throughout the population as a result of the rise in the number of employed individuals and population growth.
- Despite the COVID-19 pandemic, worldwide spending on energy-efficient construction increased by an exceptional 11.4% in 2020 to over USD 184 billion, up from USD 165 billion in 2019. The yearly growth rate for investments in energy efficiency surpassed 3% for the first time since 2015. The requirement for additional rooms in a house will result in increased demand for LEDs due to the rise in the development of energy-efficient buildings and to meet the residential needs of the expanding population.
- Globally, launches of new houses have been rising, creating more LED penetration due to the need for illumination. For instance, in India, new launches in the Mumbai Metropolitan Region (MMR) increased over two-fold to 1,24,652 units in 2022 from 56,883 units in the previous year. Brazil’s affordable housing program also restarted. The Brazilian President announced plans to restart the nationwide federal housing program for low-income individuals in February 2023. The President created the program, named “Minha Casa, Minha Vida,” which translates to “My Home, My Life,” in 2009. Such instances are further expected to raise the demand for LED lighting in the country.
Understand The Key Trends Shaping This Market
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The increasing demand for EVs is anticipated to raise the market value
- Online financing options through technology and government incentives to promote the use of EVs are expected to drive the market
- Increasing car registrations, passenger cars having the highest motor vehicle sales, and technology advancements are expected to drive the growth of the market
- Development of smart cities, expansion of green buildings, and increasing government initiatives to promote the use of energy-efficient lighting systems are expected to drive the growth of the market
- Government schemes to replace conventional bulbs with LED lights and increasing global sales of electric vehicles are expected to drive the growth of the market
- Innovation in indoor farming is expected to drive the growth of the market
- Global sales of commercial construction exceeding by 59% in 2020, increasing pipeline projects, and increasing demand for EVs are expected to drive the growth of market
- The increasing number of battery swapping stations and battery recycling service outlets and the rising demand for EVs are expected to drive the growth of the market
- Asia-Pacific being one of the significant exporters of LED products, along with the growing demand for EVs, is expected to drive the growth of the market
- The United States' large road network, increasing use of smart traffic management systems, and increasing highway construction projects are expected to drive the growth of LED market
- Upgradation and renovation of sports stadiums and government funding in the sports sector are expected to drive the growth of the market
