US & Europe LED Lighting Market Size (2024 - 2029)

US and Europe LED Lighting Market Analysis

The United States and Europe LED Lighting Market is expected to register a CAGR of approximately 9.4% during the forecast period (2020 - 2025). The demand for LED lighting solutions is growing rapidly, and with the advent of energy-efficient lighting solutions and smart Iot connectivity support, the adoption rate of LED is expected to increase further. According to the IEA, in 2019, the global LED sales reached over 10 billion units, including both light sources and luminaires, and LEDs are expected to make up over 90% of sales by 2030.

• The growing government regulations and push toward adopting energy-efficient solutions are the primary drivers behind the adoption of LED solutions. According to the United States Department of Energy, the widespread use of LED lighting offers a huge potential impact on energy savings in the United States, and by 2027, the use of LEDs can save about 348 TWh of electricity and a total savings of over USD 30 billion. Such developments are augmenting the demand.
• Owing to the growing demand, LED ecosystem players are expected to focus on increasing their production capacities and partner with other value chain players to fulfil their order demands. For instance, in March 2020, Epistar decided to increase its capital expenditure to expand capacity for Mini LED chip production, owing to the growing demand.
• Moreover, LED lighting solutions offer dimmable controls, and this feature is increasingly adopted in the residential sector and even in commercial buildings. As per the Lighting Controls Association, which is a part of the National Electrical Manufacturers Association (NEMA), prices are dropping for dimmable LEDs to levels comparable with standard on/off switches.
• Due to the COVID-19 pandemic outbreak, the market is witnessing halting of production and disruption in the supply chain, leading to weakened industrial output growth and the decline of light-manufacturing output across significant manufacturing hubs. The construction industry has also been affected, which has led to a slump in demand for lighting products. Owing to the restrictions put in place by the governments, construction activities and most of the business activities across multiple countries have been affected.

US and Europe LED Lighting Industry Segmentation

LED stands for light-emitting diode. LED lighting products produce light approximately 90% more efficiently than incandescent light bulbs, such as fluorescent and incandescent lights. About 95% of the energy in LEDs is converted into light and only 5% is wasted as heat, which is leading consumers to opt for a more efficient form of lighting.

As per the scope of the study, the market has been segmented based on product type, application, distribution channel, and geography.

In the regional level, the market numbers were collated by calculating the penetration scenarios in the major geographies.

The market study also focused on the impact of the COVID-19 pandemic on the market ecosystem.