Commercial & Industrial LED Lighting Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 16.40 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Commercial & Industrial LED Lighting Market Analysis
The Global Commercial and Industrial LED Lighting Market is expected to witness a CAGR of 16.4% during the forecast period (2022-2027). Governments in both developed and developing countries are working to reduce high energy consumption by enacting various quality laws that assist them in maintaining customer safety, reducing energy consumption, and keeping track of environmental challenges. LED lights are energy-efficient solutions that provide 50,000 hours of illumination while using less electricity. As a result, rigorous government restrictions governing the usage of high-energy-consuming lighting are expected to boost market growth.
- The market studied is driven by many factors, such as improved manufacturing efficiency, improved LED efficacy in recent years, and suitable design of LED lamps and retrofit kits, which can directly replace the existing halogen, incandescent, and fluorescent lamps.
- For Instance, In April 2022, All streetlights in Navi Mumbai will be replaced with LED lights, according to the Navi Mumbai Municipal Corporation (NMMC). It plans to replace 35,000 streetlights this year, saving INR 7 million annually. LED lighting will be installed on all city roads, including highways. While some were replaced in 2021, most will be replaced in the fiscal year 2022. The work's tendering process has commenced. The LED fittings will be installed on the Sion-Panvel highway, frequently in the dark, as it has been handed over to NMMC for maintenance by PWD.
- Further, LED prices decreased in the last few years, driven by manufacturing efficiency and economies of scale. Competition among manufacturers is also making standard LED products more affordable. Further technological innovation presents customers with a broader choice of prices and products.
- However, during the initial period of the COVID-19 pandemic, market players reported substantial impacts on their supply chain, including supply shortages and delays, decreased sales and demand, and inventory surpluses and shortages. Manufacturers reported localized supply disruptions and reduced demand for commercial retrofit projects. In contrast, residential and outdoor lighting market demand remained stable.
- LED lighting network requires a whole new infrastructure by users to enable this technology as LED employs a different standard than conventional lamps and necessitates complete replacement. Additionally, there is an imbalance between demand and supply; i.e., the supply does not meet the need for LED lights. Also, the number of manufacturers in this industry is lesser than the other lighting technologies. Hence, most of them cannot provide LEDs at competitive prices. Due to expensive raw materials, relatively new LED technology, and high demand, some components increased the cost of LED fixtures. Such factors may restrain the growth of the studied market.
Commercial & Industrial LED Lighting Market Trends
This section covers the major market trends shaping the Commercial & Industrial LED Lighting Market according to our research experts:
The Retail Segment is Expected to Drive the Market's Growth
- The demand for LED lighting in retail outlets is witnessing an upsurge, as several retailers worldwide are increasingly concerned about their impact on the environment. Retailers are responding by increasing the sustainability of their products and business practices. Improving efficiency and reducing waste lower overhead costs for retailers and provide an opportunity for business growth. To cater to the growing demand and intensifying competition, the players in the market are introducing innovative products & solutions and building robust partnerships and distribution networks.
- In May 2022, Mich.EarthTronics introduced its Color & Wattage Selectable LED Strip Series for high-bay and general lighting in retail and new commercial facilities. The company is dedicated to developing innovative energy-saving lighting products with a positive economic and environmental impact. The new LED Strip Series, which comes in 48- and 96-inch fixtures, allows facilities to switch between 3500K, 4000K, and 5000K color temperatures and three wattages during installation to provide the proper illumination level and desired color temperatures for optimum productivity.
- In March 2022, Fluence by OSRAM, a prominent global provider of energy-efficient LED lighting solutions for commercial cannabis and food production, announced its distribution partnership with HydrofarmHoldings Group, Inc., a significant manufacturer and distributor of hydroponic equipment and supplies for controlled environment agriculture. Hydrofarmwould begins distributing Fluence's newly released SPYDR Fang LED lighting solution to its network of hydro-shop retailers throughout the U.S. beginning in early April 2022.
- Moreover, among the retailers, it has been very important to show their products as they are being placed, especially when it comes to products like clothing. This means choosing the primarily designed lights to not distort the colors. The lights with high CRIs (color rendering index) become crucial. CRI primarily indicates how accurately a light source can reveal the true colors of objects, people, clothing, etc. This factor is likely to boost the growth of the studied market.
- Supermarkets have long been challenged to create an enticing atmosphere and successfully showcase their product assortments while simultaneously achieving energy efficiency and cost savings. With the older-generation lighting, such as fluorescent or halogen bulbs, proving to be inefficient, the retail sector is increasingly adopting modern LED lighting solutions that are known for imparting ambiance, enhancing fresh product appearance, and reducing spending on energy.
North America is Expected to Hold a Major Market Share
- The increasing demand for energy-efficient lighting systems, stringent government regulations, and declining prices of LED products are some of the major factors driving the adoption of LED lighting in the United States. For instance, In April 2021, the US Department of Energy announced six new initiatives to expand international cooperation around tackling the climate crisis and boosting clean energy innovation. These initiatives will boost the Biden Administration's 100% clean electricity goal by 2035 and net-zero carbon emissions by 2050. This would offer lucrative opportunities for the growth of the studied market.
- The US government is promoting the usage of LED lamps across various end-user verticals to increase energy efficiency. According to a report issued by the US Department of Energy, during 2017-2035, the number of installations of LED lamps in the commercial and residential building sectors may increase from 219 and 949 million lamp systems (MLS) in 2017 to 309 and 4038 MLS in 2035, respectively. Further, as per the US Department of Energy report published in March 2021, increased customer awareness of LED products and regulatory bodies, utility incentives, and rebate programs helped drive LED adoption; therefore, the market volume of LED lamps has grown exponentially.
- The governments in the region also regulate the lighting systems used in commercial spaces, limiting energy consumption. For example, the Federal Energy Management Program (FEMP) guides the acquisition of commercial light-emitting diode (LED) luminaires in the United States. Following suit, in July 2021, LumiledsHolding, with its operational headquarters in the United States, introduced its new LUXEON 2835 Commercial LEDs that are engineered and designed to support the increasing demand for a high volume, high-efficacy mid-power LED to serve commercial indoor lighting applications. Common commercial indoor applications include troffers, panels, and high-bay, among other formats.
- The North American industrial sector fosters the market's growth with increasing investments in industry-grade LED technologies. An industrial facility has multiple locations where high vibration, chemicals, debris, and potential explosives are present. These factors primarily impact the lifetime and performance of light fixtures installed within these locations. For example, aggregate processing and storage operations can have significant dust accumulation, while other chemical processing operations are highly acidic environments. As lighting technologies are evolving, there have been improvements in lifetime, energy efficiency, color, and safety. Furthermore, several market players are designing LED light fixtures for specific uses in hazardous and heavy industrial applications to ensure reliable, safe, and effective performance over the LED luminaire's life.
- In December 2021, Access Fixtures, a Massachusetts-based commercial and industrial lighting manufacturer, released a new family of explosion-proof light fixtures for industrial locations requiring vapor-tight and hazardous lighting. These fixtures are efficient and cost-effective at 140 lumens per watt and range in wattage from 40w to 200w. Lightweight die-cast aluminum ensures that even large fixtures weigh under 20 lbs for easy and safe mounting.
- On the Flipside, the outbreak of COVID-19 has led to a weakened growth of industrial output and the decline in light-manufacturing production across significant manufacturing hubs, owing to the halting of production and disruption in the supply chain across the United States. According to the US Department of Energy's report published in July 2021, many LED manufacturers cited a decreased demand for lighting products due to the challenges faced after the COVID-19 pandemic. Quarterly earnings dropped substantially for publicly traded LED lighting manufacturers.
Commercial & Industrial LED Lighting Industry Overview
The Global Commercial and Industrial LED Lighting Market is a moderately competitive market with significant players like Signify NV (Philips Lighting), WAC Lighting, Cree Lighting (Ideal Industries Inc), and Siteco GmbH, Wipro Lighting Limited, etc. The players in the market are innovating advanced and comprehensive products and solutions to cater to the complex requirements of their customers.
- Oct 2021 - GE Current, a Daintree company, signed a definitive agreement with Hubbell Incorporated to acquire Hubbell's commercial and industrial (C&I) lighting business, forming a premier end-to-end lighting solutions company. The two businesses' product and controls portfolios will be positioned through the broad go-to-market channels to capture growth driven by further LED conversion and demand for linked light controls systems.
- July 2021 - US LED Ltd. announced the launch of its L-Grid Edge Xtreme XL Select, a new generation of LED flat panels with selectable CCT and wattage options. More than just a light, they are engineered to bring superior visual comfort to retail stores and offices while accelerating installation.
- July 2021 - OSRAM Sylvania Inc. launched a powerful industrial LED driver. The product OTiDALI 300 watts provides more power through the extra-long service life of up to 100,000 operating hours while providing maximum flexibility with a 250 to 1550 mA output current range. It also allows a constant check on the energy consumption and operating and maintenance costs to unlock savings potential.
Commercial & Industrial LED Lighting Market Leaders
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Signify NV (Philips Lighting)
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WAC Lighting
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Cree Lighting (Ideal Industries Inc,)
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Siteco GmbH
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Wipro Lighting Limited
*Disclaimer: Major Players sorted in no particular order
Commercial & Industrial LED Lighting Market News
- June 2022 - Fluence, a developer of energy-efficient LED lighting solutions for commercial cannabis and food production, has introduced RAPTR, its newest high-output lighting solution designed to replace 1,000-watt high-pressure sodium (HPS) lamps while maximizing energy efficiency. Greenhouse and indoor growers are increasingly looking for more efficient, higher-output lighting solutions to save money on installation, operation, and maintenance while improving yield and plant quality.
- Oct 2021 - In honor of Energy Awareness Month, Dialightplc, a player in hazardous and industrial LED lighting innovation, announced the launch of the Ultra-Efficient Vigilant LED High Bay, an efficient commercially available heavy industrial rated lighting fixture. This fixture, the newest addition to Dialight'sbest-selling High Bay portfolio, is the ideal solution for sustainable lighting for industrial spaces, with a faster return on investment than prior DialightHigh Bay models-up to a full year sooner. This fixture would assist businesses in meeting their carbon-neutral operation targets more shortly while saving money on lighting-related energy expenditures.
Commercial & Industrial LED Lighting Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Move toward Energy-efficient and Connected Lighting Solutions driven by Growing Awareness and Smart Office Initiatives
4.2.2 Availability of LED-based Lighting Solutions as a Standardized Feature Coupled with Incremental Technological Advancements in the Sector
4.3 Market Challenges
4.3.1 The Sector is Susceptible to Broader Conditions, such as Construction Activity
4.4 Industry Ecosystem Analysis
4.5 Industry Attractiveness-Porter's Five Forces Analysis
4.6 LED Trade Analysis and the Impact of US-China Trade War on the LED Market (QualitativeTrends)
4.7 Imapct of Covid-19 on the Market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Lamps
5.1.2 Luminaries
5.2 By Distribution Channel
5.2.1 DirectSales
5.2.2 Wholesalers/Architects/Integrators/Retail
5.3 By End User
5.3.1 Commercial Offices
5.3.2 Retail
5.3.3 Hospitality & Leisure (Restaurants/Hotels, Sporting facilities and Places of Entertainment)
5.3.4 Healthcare
5.3.5 Industrial
5.3.6 Architectural
5.3.7 Other End Users
5.4 By Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.2 Europe
5.4.2.1 United Kingdom
5.4.2.2 Germany
5.4.2.3 France
5.4.2.4 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 Japan
5.4.3.3 India
5.4.3.4 Rest of Asia-Pacific
5.4.4 Latin America
5.4.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Signify NV (Philips Lighting)
6.1.2 WAC Lighting
6.1.3 Cree Lighting (Ideal Industries Inc,)
6.1.4 SitecoGmbH
6.1.5 Wipro Lighting Limited
6.1.6 Acuity Brands Inc.
6.1.7 Hubbell Incorporated
6.1.8 ZumtobelGroup AG
6.1.9 Technical Consumer Products Inc.
6.1.10 DialightPlc
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. FUTURE OF THE MARKET
Commercial & Industrial LED Lighting Industry Segmentation
An LED lamp or LED bulb is an electric light that produces light using light-emitting diodes (LEDs). LED lights are more energy-efficient than equivalent incandescent lamps and can be significantly more efficient than most fluorescent lamps. The Global Commercial and Industrial LED Lighting Market is segmented by type (lamps, luminaries), distribution channel (Direct sales, wholesalers/architects/integrators/retail), end-user (commercial offices, retail, hospitality & Leisure, healthcare, industrial, architectural), and geography.
Commercial lighting is utilized in commercialized locations, such as retail, offices, hospitals, institutions, and government buildings. It offers a longer lifespan, a greater initial cost, higher maintenance, better durability, repair expenses, and better energy conservation choices compared to other lighting forms. Commercial lighting includes general, connected, and some parts of architectural lighting for illumination purposes. Moreover, based on type, it includes downlight, troffers, and pendant lights, among others. The study captures the demand for the commercial and industrial lighting market based on the specific revenues accrued through the sales of lamps & luminaries in key verticals while considering only LED-based lighting products.
| By Type | |
| Lamps | |
| Luminaries |
| By Distribution Channel | |
| DirectSales | |
| Wholesalers/Architects/Integrators/Retail |
| By End User | |
| Commercial Offices | |
| Retail | |
| Hospitality & Leisure (Restaurants/Hotels, Sporting facilities and Places of Entertainment) | |
| Healthcare | |
| Industrial | |
| Architectural | |
| Other End Users |
| By Geography | ||||||
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| Latin America | ||||||
| Middle-East and Africa |
Commercial & Industrial LED Lighting Market Research FAQs
What is the current Global Commercial and Industrial LED Lighting Market size?
The Global Commercial and Industrial LED Lighting Market is projected to register a CAGR of 16.40% during the forecast period (2024-2029)
Who are the key players in Global Commercial and Industrial LED Lighting Market?
Signify NV (Philips Lighting), WAC Lighting, Cree Lighting (Ideal Industries Inc,), Siteco GmbH and Wipro Lighting Limited are the major companies operating in the Global Commercial and Industrial LED Lighting Market.
Which is the fastest growing region in Global Commercial and Industrial LED Lighting Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Global Commercial and Industrial LED Lighting Market?
In 2024, the North America accounts for the largest market share in Global Commercial and Industrial LED Lighting Market.
What years does this Global Commercial and Industrial LED Lighting Market cover?
The report covers the Global Commercial and Industrial LED Lighting Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Global Commercial and Industrial LED Lighting Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Global Commercial and Industrial LED Lighting Industry Report
Statistics for the 2024 Global Commercial and Industrial LED Lighting market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Global Commercial and Industrial LED Lighting analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
