Home > > Semiconductor And Electronics > > Energy Efficient Lighting Market Size Forecast Report, 2032
ID : CBI_2905 | Updated on : | Author : CBI | Category : Semiconductor And Electronics
Energy Efficient Lighting Market Size is estimated to reach over USD 92.11 Billion by 2032 from a value of USD 47.08 Billion in 2024 and is projected to grow by USD 50.23 Billion in 2025, growing at a CAGR of 8.8% from 2025 to 2032.
Energy efficient lighting refers to using lighting solutions that consume less energy while maintaining the same or better quality of light compared to traditional lighting systems. Energy-efficient lighting technologies, including LED, CFL, and OLED, offer substantial energy savings compared to traditional incandescent and halogen lighting. These technologies not only reduce electricity consumption but also lower greenhouse gas emissions, aligning with global efforts to combat climate change. The adoption of energy efficient lighting is further encouraged by stringent government regulations and policies aimed at promoting energy efficiency and reducing carbon footprints.
AI is being used to improve the energy efficiency of lighting systems. AI-powered smart lighting systems can analyze data from sensors, such as occupancy and daylight sensors, to optimize lighting based on real-time conditions, which leads to reduced energy consumption, lower costs, and increased energy efficiency. Further, AI-powered lighting systems can also learn user preferences and adjust lighting accordingly, thereby creating customized lighting scenes and schedules. Therefore, the aforementioned factors are expected to positively impact the market growth in upcoming years.
Environmental sustainability refers to the responsible use of resources to maintain ecological balance and ensure the well-being of current and future generations. Sustainability plays a crucial role in mitigating environmental impacts associated with energy consumption and lighting infrastructure. Energy-efficient technologies such as LEDs contribute significantly to environmental sustainability by reducing energy consumption. LEDs consume much less electricity than traditional incandescent and fluorescent bulbs, leading to lower greenhouse gas emissions from power plants. The longevity of energy-efficient lighting solutions contributes to environmental sustainability by reducing waste.
Thus, according to the energy efficient lighting market analysis, the growing adoption of environmental sustainability solutions is driving the energy efficient lighting market size and trends.
High upfront costs can deter consumers and businesses, particularly in regions with lower economic stability or where immediate cost savings are prioritized over long-term benefits. There is often a lack of awareness or understanding about the advantages of energy efficient lighting, leading to hesitation in replacing traditional lighting systems. Further, compatibility issues with existing fixtures and the perceived complexity of integrating new technologies can also slow down adoption. Therefore, the aforementioned factors would further impact the energy efficient lighting market.
The development of smart home ecosystem presents a significant prospect for the global market. Smart home ecosystems encompass interconnected devices and systems within a household that communicate and operate seamlessly to enhance convenience, security, and energy efficiency. Smart lighting plays a pivotal role within these ecosystems by offering integration with other smart devices such as voice assistants, sensors, and home automation systems.
Further, as smart home adoption grows, fueled by increasing consumer demand for connected living experiences, the demand for smart lighting solutions is expected to rise. Manufacturers are developing interoperable platforms that enable different smart devices to communicate and collaborate effectively. This interoperability allows users to control their lighting alongside other smart appliances and systems through a single interface, enhancing user convenience and usability.
Thus, based on the above energy efficient lighting market analysis, the above factors are expected to drive the energy efficient lighting market opportunities and trends.
Based on type, the energy efficient lighting market is segmented into incandescent lamp, light emitting diode (LED), arc lamp, and gas discharge lamps.
Trends in the type:
The incandescent lamp segment accounted for the largest revenue share in the year 2024.
The light emitting diode (LED) segment is anticipated to register the fastest CAGR during the forecast period.
Based on application, the energy efficient lighting market is segmented into residential, commercial, and industrial.
Trends in the application:
The commercial segment accounted for the largest revenue share of 43.51% in the year 2024.
The residential segment is anticipated to register the fastest CAGR during the forecast period.
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific energy efficient lighting market expansion is estimated to reach over USD 22.11 billion by 2032 from a value of USD 10.69 billion in 2024 and is projected to grow by USD 11.46 billion in 2025. Out of this, the China market accounted for the maximum revenue split of 30.13%. Asia Pacific represents a rapidly growing market for energy-efficient lighting technologies, fueled by urbanization, infrastructure development, and increasing awareness of energy conservation. Countries in the region are major contributors to market growth, driven by government initiatives to reduce energy consumption and carbon emissions. LED lighting dominates the region due to its cost-effectiveness and suitability for diverse applications ranging from residential buildings to large-scale industrial complexes. Further, the regional market is competitive with a mix of local and global players expanding their product offerings and manufacturing capabilities. These factors would further drive the regional energy efficient lighting market during the forecast period.
North America market is estimated to reach over USD 32.55 billion by 2032 from a value of USD 16.72 billion in 2024 and is projected to grow by USD 17.84 billion in 2025. North American market for energy-efficient lighting technologies is driven by stringent energy efficiency regulations, government incentives, and a strong emphasis on sustainability. Further, the commercial sector, including offices, retail spaces, and hospitality, in the region are significant adopters of smart lighting solutions. Additionally, residential adoption is growing as consumers seek to reduce energy costs and environmental impact. Moreover, key players in this region focus on technological advancements and smart lighting solutions to cater to diverse customer needs. These factors would further drive the regional market share during the forecast period.
Additionally, according to the analysis, the energy efficient lighting industry in Europe is expected to witness significant development during the forecast period. Europe is a leading market for lighting technologies, characterized by comprehensive regulations promoting energy efficiency and carbon reduction targets. The transition from traditional lighting technologies to LEDs is well-established across residential, commercial, and industrial sectors.
Additionally, Latin America is a growing market for energy-efficient lighting technologies, driven by rising energy costs, environmental concerns, and government policies promoting energy efficiency. Further, in the Middle East and Africa, LED lighting is gaining traction in urban development projects, commercial buildings, and public infrastructure due to its energy-saving benefits and long-term cost-effectiveness. Government-led programs and investments in smart city projects further drive the market growth, particularly in urban centers and emerging economies. These factors are driving the regional energy efficient lighting market size and share.
The global energy efficient lighting market is highly competitive with major players providing products to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the market. Key players in the energy efficient lighting industry include-
Collaborations and Partnerships:
Report Attributes | Report Details |
Study Timeline | 2019-2032 |
Market Size in 2032 | USD 92.11 Billion |
CAGR (2025-2032) | 8.8% |
By Type |
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By Application |
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By Region |
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Key Players |
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North America | U.S. Canada Mexico |
Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
Middle East and Africa | GCC Turkey South Africa Rest of MEA |
LATAM | Brazil Argentina Chile Rest of LATAM |
Report Coverage |
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Energy Efficient Lighting market size is estimated to reach over USD 92.11 Billion by 2032 from a value of USD 47.08 billion in 2024 and is projected to grow by USD 50.23 Billion in 2025, growing at a CAGR of 8.8% from 2025 to 2032.
Asia-Pacific is the region experiencing the most rapid growth in the market.
The energy efficient lighting report includes specific segmentation details for type, application, and region.
The key participants in the market are ABB (Switzerland), Acuity Brands (U.S.), Advanced Lighting Technologies Australia Inc. (Australia), Bajaj Electricals Ltd. (India), Bridgelux (U.S.), Cooper Lighting (U.S.), Dialight (U.K.), Digital Lumens, Inc. (U.S.), Eaton (Ireland), General Electric Company (U.S.), LIGMAN Lighting Co., Ltd. (Thailand), OSRAM GmbH (Germany), Philips Lighting Holding B.V. (Netherlands), Schneider Electric (France), The Lighting Quotient (U.S.), Toshiba Lighting & Technology Corporation (Japan), and others.