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

Europe LED Lighting Market Analysis

The Europe LED Lighting Market size is estimated at 11.5 billion USD in 2025, and is expected to reach 15.4 billion USD by 2030, growing at a CAGR of 6.02% during the forecast period (2025-2030).

The European LED lighting industry is experiencing significant transformation driven by developments in the industrial and commercial sectors. The industrial real estate sector has shown remarkable resilience, with over 20 million square meters of modern warehouse and industrial space entering the market in 2022. French industrial production demonstrated strong growth, increasing by 1.1% in December 2022, indicating robust industrial activity. The commercial office sector has stabilized significantly, with an overall vacancy rate of 7.2% by the end of 2022, reflecting improved market conditions despite changing workplace dynamics. These developments are creating substantial opportunities for industrial LED lighting implementations across various industrial and commercial applications.

Infrastructure modernization initiatives are gaining momentum across Europe, with governments and municipalities investing heavily in sustainable lighting solutions. A notable example is the City of Paris's EUR 704 million contract awarded to EDF and Eiffage subsidiaries for modernizing streetlights and energy distribution lines. This comprehensive modernization project includes upgrading mounting equipment for 12,000 public lighting fixtures and 21,000 traffic light fixtures, demonstrating the scale of infrastructure improvements being undertaken. The initiative represents a broader trend of European cities investing in smart LED lighting infrastructure to enhance energy efficiency and urban sustainability.

The construction and renovation sector is witnessing substantial investments in sports and entertainment facilities, driving demand for advanced LED lighting solutions. In 2023, the Serbian Football Federation, with UEFA's support, invested over EUR 20 million in modernizing several stadiums across the country. Similarly, Spain's Valencia committed EUR 300 million for the construction of the Nou Mestalla stadium, highlighting the significant scale of new construction projects incorporating modern commercial LED lighting systems. These developments are creating new opportunities for innovative lighting solutions while setting higher standards for energy efficiency and lighting quality.

European nations are increasingly focusing on energy-efficient lighting building solutions and sustainable infrastructure development. The German federal government has implemented comprehensive funding programs, offering grants of up to 20% of investment costs for energy-efficient lighting technology and intelligent control systems. This initiative aligns with broader European Union objectives for achieving climate neutrality by 2050. The Czech Republic has also demonstrated significant progress in industrial development, reporting high supply levels exceeding 1.1 million square meters of modern industrial space, indicating a strong commitment to sustainable infrastructure development across the region.

Europe LED Lighting Market Trends

Increasing residential housing and non-residential buildings may drive the growth of LED lights

• In 2022, Europe had 743.5 million people. The Member States of the European Union contain over 131 million structures. The European Union has 119 million residential buildings and 12 million non-residential buildings. In 2022, the demand for housing remained high, encouraging the building of new homes in the region, thus benefitting the local LED market.
• There were 197.4 million households in 2021 as opposed to 196.0 million in 2020. In the EU, 49.4% of households had a single child in 2021, followed by 38.6% with two children and 12% with three or more. About 70% of EU citizens were homeowners in 2020. In 2019, European homes had 1.6 rooms per person on average. The use of LEDs in homes and business spaces may increase as the population and the number of households rise.
• As of 2019, there were 242.7 million cars on the road in the European Union, an increase of 1.8% from the previous year, and more than 28 million vans on the road. France has by far the largest fleet of vans, with six million vehicles, followed by Italy (4.2 million), Spain (3.8 million), and Germany (2.8 million). EU roadways have 6.2 million medium and heavy commercial vehicles. Even though registrations have gone up recently, only 4.6% of all EU vehicles are alternatively powered. Hybrid electric vehicles make up 0.8% of all vehicles on EU roads, while battery-electric and plug-in hybrid vehicles each account for only 0.2% of the total. The increase in automotive vehicle sales may positively impact LED sales in the region.

Increasing disposable income and government incentives may lead to more LED penetration

• In 2022, 198 million households resided in the EU, with 2.2 members per household on average. The region's population was 746.2 million in 2020, which reduced to 742.2 million by 2023. Homeownership rates in the EU declined by 69.10% in 2022 from 69.90% in 2021. Such instances suggest that housing development projects are less than in previous years despite a slight decline in the number of households. Thus, LED penetration is expected to grow positively but less in the residential segment compared to previous years.
• In Europe, disposable income is high for most countries, resulting in rising spending power of individuals, especially on new residential spaces. The United Kingdom's per capita income reached USD 33,138 in 2022, while that of France reached USD 25,337.7.
• In Europe, the governments provide incentive programs to create more LED penetration. The UK government announced the launch of a new energy-efficient lighting proposal. Under this, lighting, such as low energy-use LEDs, would replace old halogen bulbs. Such initiatives could save households between GBP 2,000 (USD 2,525.96) and GBP 3,000 ( USD 3,788.98) over: Europe outdoor households. The “Federal Funding for Efficient Buildings” program was launched in January 2021 in Germany. Anyone who owns a property in Germany or who is looking to buy property in the country can apply for the funding. The energy efficiency program also includes lighting energy efficiency buildings. In June 2017, the French government announced the Energy Savings Certificate scheme, which allows people to get subsidies that can cover up to 100% of the price of LED bulbs based on the householder’s income. Such instances are expected to boost the demand for LED lighting in the region during the forecast period.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Indoor Lighting

Industrial and Warehouse Segment in Europe LED Indoor Lighting Market

The industrial and warehouse segment dominates the European LED indoor lighting market, accounting for approximately 64% market share in 2024. This significant market position is primarily driven by extensive warehouse construction activities across the European Union, with over 20 million square meters of modern warehouse and industrial space entering the market. Poland leads the development with nearly 4.4 million square meters of space, while the Czech Republic maintains high supply levels exceeding 1.1 million square meters. France's industrial sector shows particular strength, with production increasing by 1.1% in December 2022, concentrated mainly in the Greater Paris, Lille, and Orleans/Tours regions. The demand for industrial and logistics space remains robust, especially in key markets like Lille, which maintains one of the highest take-up rates in the country. The adoption of indoor LED lighting solutions, including LED panel and LED tube light, is pivotal in enhancing energy efficiency and operational productivity in these spaces.

Agricultural Lighting Segment in Europe LED Indoor Lighting Market

The agricultural lighting segment is experiencing rapid growth, driven by innovative developments in vertical farming and greenhouse technologies across Europe. France is leading this transformation with businesses like Grow Deal establishing the country's first vertical indoor farm, while Futura Gaia secured EUR 11 million in 2023 to scale up industrial vertical farming operations. The Netherlands continues to be at the forefront with approximately 80% of its vegetable production taking place in greenhouses, while Spain's farms cover 320 square kilometers, representing the world's largest greenhouse area. PlantLab's research center in Den Bosch, Netherlands, stands as the largest vertical farming facility globally, having secured EUR 50 million in investment capital for expansion. These developments, coupled with Spain's Ekonoke's innovative hydroponic systems that use 95% less water than traditional farming, are driving significant growth in indoor LED lighting adoption for agricultural applications.

Remaining Segments in Indoor Lighting

The commercial and residential segments continue to play vital roles in shaping the European LED indoor lighting market. The commercial sector, encompassing offices, retail spaces, and other facilities, benefits from ongoing modernization projects and energy efficiency initiatives. Office spaces are experiencing a post-pandemic recovery with stable vacancy rates, while retail locations are adapting to new lighting requirements for enhanced customer experience. The residential segment maintains steady growth through renovation projects and new construction activities, particularly driven by energy efficiency regulations and smart home integration trends. Both segments are influenced by government initiatives promoting LED adoption and sustainable building practices across European nations. The use of LED downlight solutions is increasingly popular in residential settings, contributing to energy savings and modern aesthetics.

Segment Analysis: Outdoor Lighting

Public Places Segment in Outdoor LED Lighting Market

The public places segment dominates the European outdoor LED lighting market, commanding approximately 71% market share in 2024. This significant market position is driven by the continuous development of new amusement parks, such as Funtasy World Rödental in Germany and Pushkin Theme Park in Russia opening in 2023. The retail sector's expansion has also contributed substantially to this segment's dominance, with major developments like IKEA's new store specializing in household items, including lamps on Oxford Street. The increasing focus on parking infrastructure development, coupled with the growing number of retail outlets across Europe, has created substantial demand for LED lighting solutions in public spaces. Furthermore, smart city initiatives and the implementation of IoT-enabled lighting systems in public areas have strengthened this segment's market position.

Streets and Roadways Segment in Outdoor LED Lighting Market

The streets and roadways segment is experiencing robust growth, driven by increasing complexity in transportation infrastructure and the rapid transition from conventional lighting to intelligent lighting solutions. Government initiatives and regulatory frameworks supporting smart cities are accelerating the adoption of intelligent street and lane lighting solutions. The implementation of IoT-enabled street lighting systems is gaining significant traction due to their energy efficiency and maintenance cost benefits. Cities across Europe are actively testing and deploying 'smart street lighting' as part of their future city initiatives, exemplified by Glasgow's comprehensive testing program. The segment is further bolstered by increasing government spending, as evidenced by the UK's substantial investment in street lighting, which reached GBP 882 million in recent years. The adoption of energy and lighting cost-saving techniques, coupled with the deployment of brighter, longer-lasting LED solutions, is expected to drive sustained growth in this segment.

Remaining Segments in Outdoor Lighting

The other segments in outdoor LED lighting encompass specialized applications such as architectural lighting, monument illumination, and temporary event lighting. These segments play a crucial role in enhancing the aesthetic appeal of urban spaces and historical structures across Europe. The renovation and lighting projects for castles and historical monuments, coupled with the increasing focus on energy-efficient solutions for specialized outdoor applications, continue to drive innovation in these segments. The implementation of advanced lighting control systems and color-changing capabilities has opened new possibilities for creative lighting solutions in these specialized applications, contributing to the overall market growth.

Segment Analysis: Automotive Utility Lighting

Headlights Segment in Automotive Utility Lighting Market

Headlights represent the dominant segment in the European automotive LED lighting market, accounting for approximately 60% of the total market value in 2024. The segment's leadership position is driven by stringent European safety regulations requiring asymmetric low beams and high beams in motor vehicles. LED headlight bulbs have demonstrated superior performance with lighting ranges reaching up to 300 meters, significantly outperforming traditional halogen bulbs that typically reach only 100 meters. The adoption of LED headlights has been particularly strong in electric vehicles, with major automotive manufacturers like Volkswagen, BMW, and Daimler investing heavily in LED lighting technologies. The segment's growth is further supported by the increasing focus on adaptive LED and laser headlight technologies, which offer enhanced safety features and improved energy efficiency.

Directional Signal Lights Segment in Automotive Utility Lighting Market

The directional signal lights segment is experiencing rapid growth in the European automotive LED lighting market, driven by increasing safety regulations and technological advancements. The segment's expansion is closely tied to the rising production of both passenger and commercial vehicles across Europe. The growth is particularly notable in electric vehicles, where LED signal lights are becoming standard features due to their energy efficiency and durability. Major automotive manufacturers are increasingly focusing on innovative designs and advanced LED technologies for directional signals, incorporating features like dynamic turn indicators and sequential lighting patterns. The segment is also benefiting from the growing trend of vehicle customization and the increasing demand for premium lighting solutions in luxury vehicles.

Remaining Segments in Automotive Utility Lighting

The automotive utility lighting market encompasses several other important segments, including daytime running lights (DRL), reverse lights, stop lights, tail lights, and other specialized lighting applications. DRLs have become increasingly important due to mandatory requirements in European vehicles for enhanced visibility and safety. Reverse lights continue to play a crucial role in vehicle safety systems, particularly with the integration of smart parking assistance features. Stop lights and tail lights are evolving with new LED technologies that offer improved visibility and distinctive styling options. These segments are collectively driving innovation in automotive lighting, with manufacturers focusing on developing integrated lighting solutions that combine multiple functions while maintaining high energy efficiency and safety standards.

Segment Analysis: Automotive Vehicle Lighting

Passenger Cars Segment in Automotive Vehicle Lighting Market

Passenger cars dominate the automotive vehicle lighting market in Europe, accounting for approximately 83% market share in 2024. This significant market position is driven by the increasing adoption of LED lighting technologies in modern passenger vehicles, particularly in premium and luxury segments. The segment's growth is further supported by stringent European regulations mandating the use of energy-efficient lighting solutions and advanced safety features in passenger vehicles. The rise of electric vehicles in Europe has also contributed substantially to LED adoption, as EVs typically incorporate more sophisticated lighting systems. Major automotive manufacturers like Volkswagen, BMW, and Mercedes-Benz are increasingly integrating advanced LED lighting solutions in their new vehicle models, including adaptive headlights and dynamic signaling systems. The segment's strength is particularly evident in key markets like Germany, France, and the United Kingdom, where consumer preference for vehicles with advanced lighting technologies remains high.

Two-Wheelers Segment in Automotive Vehicle Lighting Market

The two-wheeler segment is emerging as the fastest-growing category in the automotive vehicle lighting market, driven by increasing adoption of electric scooters and motorcycles across European urban centers. The segment's growth is supported by rising environmental consciousness and government initiatives promoting sustainable transportation solutions. Major manufacturers are introducing innovative LED lighting solutions specifically designed for two-wheelers, focusing on both functionality and aesthetic appeal. The segment is witnessing significant technological advancements, particularly in the development of adaptive lighting systems and integrated safety features for motorcycles. European markets, especially Italy, Spain, and France, are showing strong demand for premium two-wheelers equipped with advanced LED lighting systems. The growth is further accelerated by the expansion of electric bike-sharing services in major European cities and increasing consumer preference for personal mobility solutions in urban areas.

Remaining Segments in Automotive Vehicle Lighting

The commercial vehicles segment represents a significant portion of the automotive vehicle lighting market, with unique requirements and specifications. This segment encompasses a wide range of vehicles, including trucks, buses, and light commercial vehicles, each requiring specialized lighting solutions. The segment is characterized by a strong focus on durability and reliability, with LED lighting systems designed to withstand harsh operating conditions and extended usage periods. Commercial vehicle manufacturers are increasingly incorporating advanced lighting technologies to enhance safety features and comply with European regulations. The segment also shows particular emphasis on energy efficiency and long-term cost benefits, making LED solutions increasingly attractive for fleet operators and transport companies. The market for commercial vehicle lighting is closely tied to overall economic activities and logistics sector growth in Europe.

Europe LED Lighting Market Geography Segment Analysis

LED Lighting Market in France

France dominates the European LED lighting landscape, commanding approximately 18% of the market share in 2024. The country's leadership position is reinforced by its comprehensive energy transition framework and National Low-Carbon Strategy. The French government's commitment to sustainability is evident in its ambitious target of producing two million electric vehicles annually by 2030, driving significant demand for automotive LED lighting. The City of Paris's strategic investment in modernizing streetlights through a EUR 704 million contract demonstrates the country's commitment to urban lighting infrastructure. This initiative includes upgrading mounting equipment for 12,000 public lighting fixtures and replacing 70,000 streetlamps with LED technology. The residential sector shows particular promise, with new dwelling authorizations rising significantly, while the commercial sector benefits from strong demand across retail, office, and industrial segments.

LED Lighting Market in Germany

Germany's LED lighting market is characterized by robust industrial adoption and strong government support for energy-efficient technologies. The Federal Office for Economic Affairs and Export Control's announcement to fund efficient lighting technology and intelligent control, providing grants up to 20% of investment costs, has catalyzed market growth. German industrial companies make significant contributions to the country's prosperity, accounting for approximately 60% of total R&D expenditure. The automotive sector's commitment to spending EUR 150 billion on digitalization, electric mobility, and safety technologies has created substantial opportunities for LED lighting applications. The country's climate-neutral goals by 2050 have prompted increased funding for energy-efficient buildings, while the commercial sector benefits from low vacancy rates and steady demand for modern office spaces.

LED Lighting Market in United Kingdom

The United Kingdom's LED lighting market is undergoing significant transformation driven by governmental initiatives and infrastructure development. The nation's commitment to reaching net-zero emissions by 2050 has catalyzed the adoption of energy-efficient lighting solutions across various sectors. The government's consultation on new energy-efficient lighting proposals aims to replace traditional halogen bulbs with LEDs, potentially saving households between GBP 2,000 to GBP 3,000 over the lifetime of the bulbs. The commercial sector shows particular resilience, with retail parks demonstrating strong performance and significant year-on-year growth. The Department of Education's national investment scheme, promising substantial funding for energy-efficient upgrades in schools and colleges, further strengthens the institutional segment of the LED lighting market.

LED Lighting Market in Other European Countries

The broader European LED lighting market encompasses several dynamic markets, including Spain, Italy, the Netherlands, and other nations, each contributing uniquely to the region's growth. Spain's significant investments in stadium infrastructure and automotive manufacturing facilities have created substantial demand for LED lighting solutions. Italy's stable housing market and growing focus on energy-efficient building renovations continue to drive LED adoption in the residential sector. The Netherlands stands out in horticultural LED lighting applications, leveraging its position as a leading greenhouse vegetable producer. Other countries like Poland, Sweden, and Denmark are making notable strides in smart city initiatives and sustainable urban development projects, incorporating advanced LED lighting systems in their infrastructure modernization efforts.

Free With This Report

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.