China LED Lighting Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

China LED Lighting Market Analysis

The China LED Lighting Market size is estimated at 7.47 billion USD in 2025, and is expected to reach 11.8 billion USD by 2030, growing at a CAGR of 9.58% during the forecast period (2025-2030).

China's LED lighting industry is undergoing a significant transformation driven by extensive infrastructure development and commercial expansion. The Shanghai Council of Shopping Centers forecasts the opening of 45 new shopping malls with a total area exceeding 3 million square meters by 2023, indicating substantial growth in commercial infrastructure. This expansion is complemented by the rapid development of Grade A office spaces, with JLL reporting that 20 key mainland cities occupied 94.47 million square meters of premium office space in the first half of 2023. The modernization of commercial spaces has created a surge in demand for advanced lighting solutions, particularly in high-end retail and office environments.

The retail and commercial sector is experiencing robust growth, evidenced by retail sales surging 12.7% in May 2023. Major retail projects are being launched across key cities, with significant developments in premium commercial zones. The technology, media, and telecoms (TMT) sector has emerged as a crucial driver of commercial space utilization, accounting for 21% of Beijing's premium office market share in 2022. These developments are accompanied by innovative LED lighting solutions that enhance customer experience and operational efficiency while maintaining energy sustainability.

The industrial and manufacturing landscape is evolving with the establishment of new production facilities and warehouses. Major automotive manufacturers are expanding their presence, with companies like BMW and Audi opening new factories in Shenyang and Changchun, respectively. The integration of smart manufacturing principles and the need for energy-efficient industrial lighting solutions are driving the adoption of advanced LED lights manufacturers in China systems in these facilities. This industrial expansion is particularly significant as China continues to serve as a global manufacturing hub.

The market is witnessing a strong push toward technological innovation and smart lighting solutions. In 2022, China demonstrated its growing focus on technology-driven enterprises by adding 74 new unicorn companies, with approximately 70% concentrated in the healthcare and smart logistics sectors. This technological advancement is reflected in the China LED market through the integration of smart controls, automated systems, and energy-efficient solutions. The emphasis on sustainable and intelligent lighting solutions is particularly evident in new commercial and industrial developments, where China lighting technology is being combined with smart control systems to optimize energy usage and enhance operational efficiency.

China LED Lighting Market Trends

A steady birth rate is complementing the positive growth of homeowners, small and medium-sized businesses, and electric vehicles

• In 2022, China had a total population of 1,411.75 million. In China, 6.77 children were born for every 1,000 adults in 2022. With the steady growth of the youth, around 141.05 million sq. m of commercial real estate was being built each year in China in 2021. The incubation of an additional 3,000 small giant enterprises in the year was supported by the Ministry of Industry and Information Technology in March 2022. By 2025, China wants to have 1,000 single-product champion enterprises and 10,000 tiny giant businesses. The demand to use more LEDs will be driven by the growth in businesses and enterprises.
• In China's lower socioeconomic strata, as of 2019, more than 60% of residents were homeowners. In comparison to citizens of big cities, the ownership rate was substantially greater. In lower-tier cities and towns, 41% of homeowners did not have a mortgage on their home. In 2019, the average household size in rural and urban areas was 48.9 sq. m and 39.8 sq. m, respectively. The increased use of LEDs may be influenced by the rise in home purchases.
• Owing to the growing population, China had 297 million cars as of September 2021. Motor vehicle registrations totaled 8.83 million in the third quarter of 2021. In 2021, more than 85% of all electric vehicle sales took place in China. In 2021, China sold 3.3 million more electric vehicles than the rest of the world (3.0 million). With 7.8 million vehicles, China's electric car fleet continued to be the largest in the world in 2021. The requirement for additional LEDs will be facilitated by the rise in the LED lighting market in China due to the rise in the number of EVs.

The rising per capita income complements the growth of households

• The average household size in China registered 3.03 persons in 2017. By 2021, it reduced to 2.7, indicating an increase in private households/housing ownerships. After 1998, China went from being a nation dominated by public renters to one with the highest homeownership rates, owing to the privatization of existing public housing and the vast provision of private housing, primarily in the ownership sector. By 2020, more than 90% of households in China owned their homes (87% in urban areas and 96% in rural areas). In contrast to many affluent countries, more than 20% of Chinese households own several properties. Thus, the increase in the number of properties is expected to create more LED penetration for the need for illumination in the country.
• In China, disposable income is growing, resulting in the rising spending power of individuals who spend more money on new residential spaces. China's per capita income reached USD 12,732.5 in December 2022 compared to USD 12,615.7 in December 2021. India's per capita income was USD 2,301.4 as of Mar 2022, which is lower than China's.
• In China, the floor area of residential buildings per capita for rural areas was reported at 48.900 sq. m in 2019, an increase from the previous year of 47.300 sq. m. In urban areas, it was 38.600 sq. m in 2020, a decrease from 39.800 sq. m in 2019 due to an increase in the investment in small-size apartments/studio apartments. This is propelling the growth of LED lighting in the country. For instance, people in China invested in low-cost apartments in small Chinese cities. In 2012, households in China were offered a program of CNY 2.2 billion (USD 0.31 billion) for the use of energy-conserving light bulbs and LEDs. Such instances are expected to increase the demand for LED lighting in the country.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Indoor Lighting

Industrial and Warehouse Segment in China LED Indoor Lighting Market

The industrial LED lighting and warehouse segment dominates China's LED indoor lighting market, commanding approximately 79% of the market share in 2024. This significant market position is driven by China's robust manufacturing sector and expanding logistics infrastructure. The dramatic growth in e-commerce and export activities has led to increased demand for new warehouses and logistics facilities across the country. Major companies like Yum China Holdings are expanding their distribution networks, with plans to increase their facilities from 32 to 45-50 distribution centers. Additionally, the growing demand for EVs and semiconductors is creating requirements for new manufacturing facilities, with companies like Nio Inc. planning new plants and Shenzhen doubling its efforts to grow the local chip industry through substantial subsidies and incentives for chipmakers.

Agricultural Lighting Segment in China LED Indoor Lighting Market

The agricultural lighting segment is emerging as the fastest-growing sector in China's indoor LED lighting market, with significant expansion driven by the country's focus on vertical farming systems and sustainable agriculture. China's commitment to developing innovative agricultural technologies is evident in their recent unveiling of the world's first unmanned 20-story vertical 'plant factory' under the Chinese Academy of Agricultural Sciences. The segment's growth is further supported by government-funded initiatives and technological advancements in plant light formulas, which have helped resolve traditional challenges of low light efficiency and high energy consumption in plant factories. The implementation of these advanced lighting solutions is particularly crucial as China faces declining arable land and increasing urban population demands for fresh, pesticide-free produce.

Remaining Segments in Indoor LED Lighting Market

The commercial LED lighting and residential segments complete the indoor LED lighting market landscape in China, each serving distinct market needs. The commercial segment encompasses office spaces, retail establishments, and other commercial facilities, benefiting from the continuous development of shopping centers and corporate infrastructure across major Chinese cities. The residential segment, while smaller in market share, remains significant due to China's massive housing market and increasing consumer preference for energy-efficient lighting solutions. Both segments are experiencing steady growth driven by urbanization, smart city initiatives, and the government's push for green building standards, which mandate energy-efficient lighting solutions in new constructions.

Segment Analysis: Outdoor Lighting

Streets and Roadways Segment in China LED Outdoor Lighting Market

The streets and roadways segment dominates China's outdoor LED lighting market, commanding approximately 71% market share in 2024. This significant market position is driven by China's extensive road infrastructure development, with the country having over 5.5 million kilometers of road networks. The segment's growth is further supported by government initiatives like the installation of solar LED street lights across new Chinese villages, with authorities allocating CNY 9.018 million for implementing these projects. Major lighting companies are actively participating in smart street lighting projects, with companies like Signify supplying LED street lights and smart poles to industrial parks in various Chinese provinces. The adoption of intelligent traffic management systems and the replacement of traditional lighting with smart LED solutions across cities has also contributed to this segment's dominance. These developments align with China's commitment to building a highway network of 461,000 kilometers by 2035, ensuring sustained demand for LED street lighting solutions.

Public Places Segment in China LED Outdoor Lighting Market

The public places segment in China's outdoor LED lighting market demonstrates robust growth potential, driven by significant investments in infrastructure development and urban modernization initiatives. The segment's expansion is supported by China's continued investment in sports facilities, with over CNY 13.5 billion allocated for new stadiums and infrastructure upgrades. The government's commitment to opening more than 1,000 sports venues nationwide by 2025 further strengthens this growth trajectory. Additionally, the development of commercial spaces, including shopping centers and tourist attractions, contributes to segment growth. Major market players are implementing innovative lighting solutions in public spaces, such as dynamic lighting projects for buildings along famous waterfronts and in financial districts. These initiatives not only enhance the aesthetic appeal of public spaces but also align with China's energy efficiency goals, as LED lighting can reduce annual lighting costs by 50-70% compared to conventional lighting systems.

Remaining Segments in Outdoor Lighting Market

The other segments in China's outdoor LED lighting market encompass various specialized applications including architectural lighting, landscape lighting, and security lighting installations. These segments play a crucial role in enhancing the overall urban landscape and contributing to China's smart city initiatives. The implementation of aesthetic lighting for historical and cultural sites, particularly across China's 56 World Heritage Sites, demonstrates the versatility of LED lighting applications. Additionally, these segments support the country's tourism infrastructure development, with innovative lighting solutions being deployed in entertainment venues, parks, and other public attractions. The integration of smart control systems and energy-efficient lighting solutions in these applications aligns with China's broader environmental sustainability goals and urban development strategies.

Segment Analysis: Automotive Utility Lighting

Headlights Segment in Automotive Utility Lighting Market

Headlights continue to dominate the automotive utility lighting market in China, holding approximately 29% of the market share in 2024. The segment's prominence is driven by the increasing focus on advanced lighting technologies and safety features in vehicles. Chinese automakers are increasingly incorporating sophisticated LED headlight systems that offer better visibility and energy efficiency. The adoption of adaptive headlight technologies and smart LED lighting solutions has further strengthened this segment's position. Major automotive manufacturers in China are investing in research and development to enhance headlight performance, particularly for electric vehicles where energy efficiency is crucial. The segment has also benefited from stringent safety regulations and growing consumer awareness about the importance of proper vehicle illumination.

Reverse Light Segment in Automotive Utility Lighting Market

The reverse light segment is emerging as the fastest-growing category in China's automotive utility lighting market, with projections indicating robust growth between 2024 and 2029. This growth is primarily attributed to the increasing integration of advanced safety features in vehicles and the rising demand for sophisticated parking assistance systems. Chinese automotive manufacturers are incorporating innovative reverse lighting solutions that offer enhanced visibility and safety features. The segment is witnessing significant technological advancements, including the integration of smart sensors and automated systems that work in conjunction with reverse lights. The growth is further supported by the expanding commercial vehicle sector in China, where reliable reverse lighting systems are essential for safe operations. Additionally, the segment is benefiting from the increasing adoption of LED technology in reverse lights, which offers better durability and energy efficiency.

Remaining Segments in Automotive Utility Lighting

The automotive utility lighting market in China encompasses several other important segments including directional signal lights, daytime running lights (DRL), stop lights, and tail lights. Directional signal lights play a crucial role in vehicle safety and communication, while DRLs have become increasingly important for daytime visibility and brand recognition. Stop lights continue to evolve with new LED technologies offering enhanced visibility and faster response times. Tail lights are seeing innovations in design and functionality, particularly in premium vehicle segments. These segments collectively contribute to the overall market dynamics, with each serving specific safety and aesthetic functions in modern vehicles. The ongoing technological advancements and increasing focus on vehicle safety are driving innovations across all these segments, particularly in the context of electric and autonomous vehicles.

Segment Analysis: Automotive Vehicle Lighting

Passenger Cars Segment in Automotive Vehicle Lighting Market

Passenger cars continue to dominate China's automotive vehicle lighting market, commanding approximately 64% of the total market value in 2024. This significant market share is driven by the robust growth in passenger vehicle sales across China, particularly in the electric vehicle segment. The increasing adoption of advanced LED lighting technologies in passenger vehicles, including sophisticated headlamps, tail lights, and interior lighting systems, has further strengthened this segment's position. Major Chinese automakers like Geely, SAIC Motor, and BYD are incorporating premium LED lighting solutions in their vehicles, while international manufacturers are also expanding their presence in the Chinese market with innovative lighting technologies. The growing consumer preference for vehicles with enhanced safety features and aesthetic appeal has led to increased integration of advanced LED lighting systems in passenger cars.

Commercial Vehicles Segment in Automotive Vehicle Lighting Market

The commercial vehicles segment is emerging as the fastest-growing category in China's automotive vehicle lighting market between 2024 and 2029. This growth is primarily driven by the expansion of China's logistics and transportation sector, coupled with stringent safety regulations mandating advanced lighting systems in commercial vehicles. The segment's growth is further supported by the increasing adoption of electric commercial vehicles, which typically incorporate more sophisticated LED lighting systems. The rise in e-commerce activities and the subsequent demand for delivery vehicles has created a substantial market for commercial vehicle lighting solutions. Additionally, the government's focus on improving road safety and reducing carbon emissions has encouraged fleet operators to upgrade their vehicles with energy-efficient LED lighting systems.

Remaining Segments in Automotive Vehicle Lighting Market

The two-wheeler segment represents another significant component of China's automotive vehicle lighting market. This segment encompasses a wide range of vehicles from traditional motorcycles to electric scooters, each requiring specific lighting solutions. The segment's dynamics are influenced by urbanization trends, the growing popularity of food delivery services, and the increasing adoption of electric two-wheelers in major cities. Manufacturers are focusing on developing compact, energy-efficient LED lighting solutions specifically designed for two-wheelers, considering factors such as space constraints and power consumption. The segment also benefits from the growing emphasis on rider safety and visibility, leading to increased adoption of advanced lighting technologies in two-wheelers.

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We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 40+ free charts, the sections cover difficult to find data on various countries on Automotive Production, Lighting Electricity Consumption, Road Network, Number of Stadiums, Number of Charging Stations among others.