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Lighting Industry Statistics and Analysis for Business Research



The scope of the light industry is huge. Lights are one of the basic requirements of every household and are widely used for commercial purposes. New age LED lights are proving to be more economical and environment friendly. China is one of the major exporters of bulbs and lights at a cheap rate. Lights have various uses and types that cater to the needs of every customer. Festival seasons around the world like Christmas and Diwali are a great period for light manufacturers as sales are normally very high.

General Overview

  1. The global lighting market size was $118.33 billion in 2019 & is projected to reach $163.72 billion by 2027, exhibiting a CAGR of 4.3% during the forecast period
  2. The lighting industry comprises companies that operate by manufacturing a range of products including electric light bulbs, tubes, parts, and components.
  3. The main product segments in the industry are lighting fixtures and control gear, which account for 82% of the lighting market.
  4. Lighting components that include lamps, light bulbs, electrical elements, and light frames account for approximately 15% of the overall market revenue, and neon and electronic signs account for 3%.
  5. The lighting components segment is in decline, as imports have a stronghold. Demand for neon and electronic signs is affected by advertising spending levels and competition between electronic signs and other forms of advertising
  6. According to McKinsey, the global lighting market was to grow to approximately to the value of $159 billion by the end of 2020, with 80% of that total from general lighting.
  7. The global general lighting market is expected to grow from $99.44 billion in 2020 to $102.97 billion in 2021 at a compound annual growth rate (CAGR) of 3.5%.
  8. Based on technology, LED lighting has become one of the most preferred technologies among consumers and is further expected to witness the highest growth rate in the forecast period.
  9. The surge in the demand for LEDs is the result of the rising environmental concern and favourable government initiatives.
  10. With energy becoming more expensive and the growing scarcity of resources, LEDs have become the go-to option for consumers across the globe.
  11. The market is expected to reach $140.71 billion in 2025 at a CAGR of 8%.
  12. The general lighting market covered in this report is segmented by product type into LED, CFL, LFL, HID, halogens, incandescent, others.
  13. According to a report by Global Construction Perspectives and Oxford Economics, the global construction market is forecast to grow by over 70% by 2025.
  14. The increase in demand for construction activities will have a positive impact on the growth of the general lighting market.
  15. The countries covered in the global general lighting market are Brazil, China, France, Germany, India, Indonesia, Japan, South Korea, Russia, UK, USA, Australia.
  16. The global LED lighting market was valued at $55,201.9 million in 2020, and it is expected to grow at a CAGR of 10.7% during the forecast period (2020–2030).
  17. Luminaires Held Larger Share due to Their Proliferating Adoption
  18. Retrofit Installations To Witness Faster Growth due to Rising Replacement of Conventional Lamps with LEDs
  19. APAC Is Largest Revenue Contributor to Industry Due to Increasing Demand for LEDs from Various Sectors
  20. LATAM To Witness Fastest Market Growth during Forecast Period Due to Rapid Urbanization
  21. Smart LED lights have gained popularity in recent years, primarily in Japan and China, owing to their high energy efficiency and the ability to control the lighting from anywhere, anytime, from smartphones.
  22. Smart lights allow users to change the color of the lights to create an indoor ambiance as per their mood and preference.
  23. LED Lighting Market Size Worth $135.58 Billion By 2028
  24. Since they use only a fifth of the electricity required by a comparable incandescent bulb, light-emitting diodes (LEDs) are currently among the most energy-efficient light sources in the world.
  25. The world’s leading light bulb-makers, such as Signify and Osram, and specialized LED manufacturers, such as Cree and Nichia, can all be found on the list of leading LED companies worldwide, generating revenue up to some 2 billion U.S. dollars from LED sales annually.
  26. The U.S. The market is estimated at $8.5 Billion in 2021, While China is Forecast to Reach $13 Billion by 2026
  27. The global market for LED Lighting in Indoor applications is estimated at US$36.4 Billion in 2020 and is projected to reach US$49.4 Billion by 2026 reflecting a compounded annual growth rate of 5.6% over the analysis period.
  28. Europe constitutes the largest regional market for the Indoor segment, accounting for 31.9% of the global sales in 2020.
  29. China is poised to register the fastest compounded annual growth rate of 6.9% over the analysis period, to reach US$10.4 Billion by the close of the analysis period.
  30. 2021 saw progress both in terms of LED deployment and lighting efficiency gains.
  31. Over 50% of buildings sector lighting markets globally are covered by LEDs.
  32. Although most advanced markets have introduced new regulations mandating the exclusive sale of high-efficacy LED lamps, progress in this area must be sustained to ensure that all countries sell only LEDs by 2025, in line with the Net Zero Emissions by 2050 Scenario.
  33. Global LED use has increased substantially in recent years, rising from a market share of 5% in 2013 to more than half of global lighting sales in 2020, with integrated LED luminaires making up an increasing share.
  34. LED prices to continue to fall, as the estimated 40 billion cumulative sales of LED lighting products in the past five years have generated economies of scale.
  35. India’s UJALA programme (Affordable LEDs for All) especially has helped deploy more than 360 million units since 2015, out of an intended 770 million.
  36. In many developed countries, the efficacies of LEDs available for residential use are already 110 lm/W to 130 lm/W, but they need to increase to an average of 140 lm/W by 2030 to meet Net Zero by 2050 ambitions.
  37. The European Union has returned to using an A (efficient) to G (inefficient) scale, along with a QR code for customers.
  38. In parallel, the efficacy of typical lamps in the United States doubled over the last decade to over 100 lm/W on average, and one-quarter of these exceed 120 lm/W.
  39. Labeling programmes that inform consumers of higher LED efficacy have been applied in many markets, including China, Europe, India and the United States.
  40. Adopting these labelling schemes in other markets would encourage consumers to shift from halogen and fluorescent lamps to LEDs.
  41. Market-based solutions, such as using bulk procurement and energy service providers, can help reduce LED costs even further while increasing uptake.
  42. Another innovative market-based solution is for private sector partners to establish themselves as lighting service providers rather than equipment sellers.
  43. As solid-state lighting (SSL) has the potential to provide high-quality, energy-efficient lighting that surpasses traditional technologies and offers lower lifecycle costs, the 4E TCP’s Solid-State Lighting Annex addresses common SSL technology challenges through an eight-country initiative involving Australia, Canada, Denmark, France, the Republic of Korea, Sweden, the United Kingdom and the United States.
  44. Governments can also increase market volumes through green public procurement schemes that bring new and better lighting technologies to national markets, but standards for lighting products are needed to ensure that public buildings choose high-performance products.
  45. Governments can also provide incentives to manufacturers for RD&D of high-efficiency LEDs.
  46. These standards should recognise that LED lamps are twice as efficient as fluorescent ones and are much more amenable to lighting controls (i.e. adjustment of light output and even colour using fixture sensors).
  47. The effort is needed to increase the deployment of energy-efficient LEDs as part of access strategies: in the Net Zero by 2050 Scenario, 1.2 billion people gain access to electricity by 2030, and energy efficiency is the key to ensuring its sustainability.

Bad Impacts of use LEDs(one of the most efficient sources of lighting)

Lighting Industry Statistics and Analysis for Business Research 1
  1. The general lighting market is restricted due to the harmful effects of LEDs (Light Emitting Diode) on human health.
  2. According to the French Agency for Food, Environmental and Occupational Health & Safety (ANSES), the blue lights which are being used in households, offices, headlights, torches, toys and street lighting can damage the eye’s retina while disturbing biological and sleep rhythms.

Based on technology, the global lighting market can be divided into:


2 Fluorescent

3 Halogen

4 Incandescent

5 Others

The various products available in the industry include:

1 Bulb

2 Streetlights

3 Downlights

4 Tube Lights

5 Flood Lights

6 Others

Based on end-use, the industry is divided into:

1 Residential

2 Commercial

3 Industrial

4 Agricultural

5 Hospital

6 Others

The various distribution channels of the product are as follows:

1 Supermarket and Hypermarkets

2 Convenience Stores

3 Specialty Stores

4 Online

5 Others

Key Industry Players in the Global Lighting Market

1 Signify N.V.


3 Schneider Electric SE

4 Nichia Corporation

5 GE Lighting

6 Eaton Corporation plc

Current Trends in the Lighting Industry

  1. Globally, as the rate of LED penetration in residential lighting is somewhat slower than the traditional lighting solutions and general-lighting segments, the residential LED lighting market is expected to be worth over $27 billion by the end of 2020.
  2. Architectural lighting has started to be an early adopter of LED lighting, especially in the recent and latest advancements in real estate, consumer taste, and overall awareness of environmentally friendly solutions in consumption of energy sources, and also due to more benefits such as color control, high efficiency, and economical.
  3. Therefore, it was expected to see a mammoth 85% LED penetration by the end of 2020 across the developing and developed nations.
  4. Rapid growth in LED penetration is also expected in hospitality, commercial store, and outdoor-lighting applications.
  5. The global lighting market is being driven by the growing demand for lighting from end-use sectors and the rising consumer awareness regarding sustainable use of resources.
  6. Companies are increasingly using Li-Fi (Light Fidelity) networks to manufacture general lighting equipment.
  7. Li-Fi is a wireless optical networking technology that uses light-emitting diodes (LEDs) for data transmission. 
  8. The Li-fi bulbs are equipped with a small chip that modulates the light used for data transmission with speeds up to 224 gigabits per second.

Future Prospects

Lighting Industry Statistics and Analysis for Business Research 2
  1. Region-wise, the market is witnessing a rapid expansion in the developing regions, particularly the Asia Pacific and the Middle East, and Africa.
  2. The industry is growing in the Middle East due to huge infrastructure investments, rising population, and the upcoming mega-events, which are ultimately creating an enhanced demand for lighting systems.
  3. The Gulf Co-operation Council (GCC) lighting market is expected to be a major emerging market in the coming years owing to its commitment to reduce carbon footprints and electricity demand, which is further supported by favorable government policies.
  4. Global Lighting Market Witnessing Rapid Expansion in Developing Regions
  5. LEDs have become the most popular lighting technology as it reduces energy consumption, come with better life expectancy, and is affordable in nature as compared to traditional lighting technologies.
  6. Due to the favorable government policies, like the use of LEDs for street lighting, there has been an increase in the sale of the product, thus, aiding the overall industry.
  7. The growing R&D activities to innovate enhanced lighting technologies are expected to propel the industry to grow further.
  8. The industrial lighting market is expected to register a CAGR of 5.3% during the forecast period (2021 – 2026).

Covid-19 and Lighting Industry 

  1. Amid the COVID-19 pandemic, the market has witnessed the halting of production and disruption in the supply chain.
  2. It led to weakened industrial output growth and the decline of light-manufacturing output across significant manufacturing hubs.
  3. The disruption in the supply chain, particularly of electronic components, such as drivers and chips, imported from China has impacted the market.
  4. The governments of various countries have put restrictions on intercity and interstate travel, which has impacted the hospitality and travel industries, thereby reducing the demand for LED lighting further.


The R&D on producing sustainable, eco-friendly, and safe lights is a necessary point of concern as the energy resources of the world are limited and decreasing. The introduction of certain government regulations and schemes can benefit both the manufacturers and the customers. The Covid-19 pandemic may have caused hindrance in the supply chain within the industry but these are being duly resolved.

TheDigitalHacker.com is a Google News-approved technology conglomerate research and publishing platform.
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