- Summary
- Table Of Content
- Methodology
LED Lighting Market Size:
LED Lighting Market size is estimated to reach over USD 155.70 Billion by 2032 from a value of USD 84.46 Billion in 2024 and is projected to grow by USD 89.70 Billion in 2025, growing at a CAGR of 8.7% from 2025 to 2032.
LED Lighting Market Scope & Overview:
LED lighting refers to a type of lighting solution that utilizes LEDs (light emitting diodes) to produce light. An LED refers to a semiconductor device that emits light when an electric current passes through it. Moreover, LEDs convert a higher percentage of electrical energy directly into light. LED lighting provides a range of benefits such as improved energy efficiency, longer lifespan, durability, cost-savings, reduced environmental impact, and others. The aforementioned benefits of LED lights are key determinants for increasing its utilization in residential, commercial, industrial, and transportation sectors.
LED Lighting Market Dynamics - (DRO) :
Key Drivers:
Rising demand for energy-efficient lighting solutions in residential and commercial sectors is propelling the LED lighting market growth
LED lights are increasingly being adopted in both residential and commercial spaces, attributing to several benefits including improved energy efficiency, longer lifespan, improved visibility, and durability. Moreover, LED lights are primarily used in residential and commercial spaces for indoor and outdoor lighting applications including ceiling fixtures, recessed lighting, under-cabinet lighting, desk lamps, accent lighting, and pathway/street lighting among others.
- For instance, according to India Brand Equity Foundation (IBEF), the residential property sector in India witnessed a significant incline of 36% in sales volume in FY23, with total residential property sales reaching up to 379,095 units.
- Additionally, according to Statistics Netherlands, the total number of new construction of commercial buildings across Netherlands including healthcare facilities, offices, educational institutions, retail shops, and others reached up to 1,042 units in 2022.
Therefore, the rising development of residential and commercial spaces is increasing the adoption of LED lights to facilitate energy-efficient and durable lighting solutions, in turn proliferating the LED lighting market size.
Key Restraints:
Availability of alternative solutions is restraining the LED lighting market growth
There are various alternative solutions for LED lighting including incandescent lighting, halogen lighting, fluorescent lights, and others. Moreover, the alternative solutions have similar performance and applications in comparison to LED lights, which is a key factor restricting the market.
Incandescent lighting is often used in residential and commercial settings. It offers several benefits including generation of warmer colors, high light output, and relatively lower costs among others. Halogen lights are a type of incandescent light that offers several benefits over the normal incandescent lamp. Halogen lights offer enhanced efficiency, improved brightness, and longer lifespan as compared to traditional incandescent lights.
Further, fluorescent light includes a low-pressure mercury-vapor gas-discharge lamp that utilizes fluorescence for producing visible light. In addition, compact fluorescent lamps (CFLs) provide several benefits including high efficiency, longer shelf-life, lower power consumption, and others. Therefore, the availability of numerous alternative solutions for LED lights are hindering the LED lighting market expansion.
Future Opportunities :
Increasing advancements associated LED lighting are expected to drive the LED lighting market opportunities
LED light manufacturers are frequently investing in the development of new technologies associated with LED lights to ensure its safe and effective utilization in residential, commercial, and industrial applications. As a result, LED light manufacturers are launching new products with updated feature, which in turn is providing lucrative aspects for market growth.
- For instance, in November 2022, Signify Holding B.V. launched its new product lineup which includes its most energy-efficient LED lighting solutions. The product line includes a range of LED bulbs and LED tubes that features energy savings of up to 60% in comparison to standard LED lamps and up to 3.5× longer lifespan.
Thus, as per the analysis, the rising advancements associated with LED lights are projected to propel the LED lighting market opportunities during the forecast period.
LED Lighting Market Segmental Analysis :
By Product Type:
Based on product type, the market is segmented into lamps and luminaires.
Trends in the product type:
- Increasing trend towards adoption of LED luminaires due to its integrated design, higher efficiency, and versatility in design and configuration.
- Rising advancements associated with LED lamps and luminaires for facilitating enhanced energy efficiency and sustainable lighting solutions.
The luminaires segment accounted for a largest revenue share in the total market in 2024.
- LED luminaires refer to complete lighting fixtures that incorporate LED light sources and other electrical components that are required for their operation.
- LED luminaires are available in multiple designs ranging from simple ceiling-mounted fixtures to complex architectural lighting.
- Moreover, LED luminaires offer several benefits including integrated design, higher efficiency, improved heat management, versatility in design and configuration, and others.
- For instance, Signify offers a wide range of indoor and outdoor LED luminaires in its product offerings. The company’s LED luminaires are designed for application in residential, commercial, and industrial spaces.
- According to the LED lighting market analysis, the rising advancements associated with LED luminaires are driving the market.
The lamps segment is anticipated to register a significant CAGR growth during the forecast period.
- LED lamps utilize light-emitting diodes (LEDs) to produce light. LED lamps typically consume very less energy in comparison to incandescent or fluorescent lamps, while providing energy savings of up to 80%.
- Moreover, LED lamps offer numerous benefits including energy efficiency, longer shelf-life, instant brightness, and variety of colors among others.
- For instance, in November 2023, Signify launched its new UltraEfficient range of LED lamps for application in roadway, hospitality, retail, and other sectors. The LED lamps fulfil the highest energy label A, under the Ecodesign Regulation and Energy Labelling Regulation.
- Thus, increasing innovations related to LED lamps are anticipated to boost the market during the forecast period.
By Installation Type:
Based on installation type, the market is segmented into new installation and retrofit.
Trends in the installation type:
- Rising installation of new LED lights in residential and commercial spaces due to its lower power consumption, energy efficiency, and durability.
- Increasing retrofit installation of LED lights, attributing to its range of benefits including reduced maintenance costs, energy savings, improved lighting quality, and others.
The new installation segment accounted for the largest revenue share in the overall market in 2024, and it is anticipated to register a significant CAGR growth during the forecast period.
- New installation includes fixing of new LED lights in residential, commercial, or industrial spaces.
- Moreover, the new installation of LED lights offers various benefits including lower power consumption, longer life span, enhanced lighting, and reduced emissions, which are primary determinants for driving the installation of new LED lights in residential, commercial, and industrial sectors among others.
- For instance, according to Press Information Bureau (PIB), the Energy Efficiency Services Limited has installed approximately 13 million new LED streetlights across the India as of December 2023, under the Street Lighting National Programme.
- Therefore, increasing installation of new LED lights are driving the LED lighting market size.
By Sales Channel:
Based on sales channel, the market is segmented into online and offline.
Trends in the sales channel:
- Factors including the availability of targeted advertising, ease of utilization, competitive pricing, along with reliable shipping and return policies are key prospects driving the online sales channel segment.
- Factors such as higher credibility, strong customer base, and ease of customization as per the target market are major determinants for driving the offline sales channel segment.
Online sales channel segment accounted for a significant revenue in the overall LED lighting market share in 2024.
- Online sales channel deploys a mode of distribution in which the manufacturers sell the products through the company websites or any other third-party e-commerce websites that are available on the internet.
- Online sales channels offer various benefits including a quicker buying process, easy access to the products, and higher flexibility.
- Moreover, the availability of LED lights in online sales channels allows quicker comparison of multiple products and prices and reduces overhead as compared to offline sales channels.
- For instance, Signify Holding is a LED light manufacturer that offers a broad range of LED lights including bulbs, lamps, tube lights, and others for direct online purchase through the company’s website. The company also offers its LED lights for online purchase through e-commerce platforms such as Amazon, eBay, and others.
- Therefore, increasing availability of LED lights in online sales channels are driving the LED lighting market trends.
Offline sales segment is anticipated to register a substantial CAGR growth during the forecast period.
- Offline sales channel involves the distribution of LED lights from manufacturers to the end-users directly or indirectly through offline distributors including hypermarkets/supermarkets, specialty stores, and others.
- Moreover, offline sales channels play a significant role in enhancing the product supply and fulfilling customer demands in the local markets, which is a prime factor in increasing its utilization for the distribution of LED lights.
- For instance, Reliance Digital, an Indian retail chain of consumer electronics and goods, offers a wide range of LED lights for offline purchase through its several retail outlets that are prevalent in multiple cities across India.
- Therefore, the rising availability of LED lights in offline sales channel is projected to boost the market during the forecast period.
By End-Use:
Based on the end-use, the market is segmented into residential, commercial, industrial, transportation, and others.
Trends in the end-use:
- Factors including the favorable government initiatives for development of green buildings and rising adoption of energy-efficient lighting solutions in residential spaces are key trends driving the residential segment.
- The commercial sector has witnessed a significant increase in utilization of LED lights, particularly in offices, hotels, retail outlets, educational institutes and others for facilitating enhanced energy efficiency and increased cost-savings.
Commercial segment accounted for the largest revenue share of 35.98% in the total LED lighting market share in 2024.
- This dominance is attributed to the rising adoption of LED lights in commercial spaces such as offices, hotels, restaurants, retail outlets, educational institutes, and others.
- Additionally, the increasing development of commercial buildings and growing demand for energy-efficient lighting solutions in commercial spaces has further propelled the market expansion.
- For instance, according to Statistics Canada, the total commercial construction permits in Canada was valued at USD 1,544,997 in December 2022, witnessing an increase of 6.4% in comparison to December 2021.
- According to the analysis, the rising development of commercial spaces is driving the adoption of LED lights, in turn propelling the market.
Residential segment is anticipated to register a substantial CAGR during the forecast period.
- LED lights are increasingly being adopted in residential spaces, attributing to numerous benefits including improved energy efficiency, longer lifespan, improved visibility, and durability.
- Moreover, LED lights are primarily used in residential spaces for indoor and outdoor lighting applications including ceiling fixtures, under-cabinet lighting, accent lighting, and pathway/street lighting among others.
- For instance, according to the United States Census Bureau, the total number of new residential units sold in the United States reached up to 184 thousand units during the second quarter of 2023, witnessing an increase of 14.2% in comparison to 161 thousand units in second quarter of 2022.
- Hence, the increasing development of residential buildings is expected to increase the installation of LED lights in residential spaces, thereby, driving the market during the forecast period.
Regional Analysis:
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific region was valued at USD 32.19 Billion in 2024. Moreover, it is projected to grow by USD 34.26 Billion in 2025 and reach over USD 60.71 Billion by 2032. Out of this, China accounted for the maximum revenue share of 39%. As per the LED lighting market analysis, the adoption of LED lights in the Asia-Pacific region is primarily driven by rising development of commercial and residential spaces and favorable government measures for adoption of LED lights among others. Additionally, the rising adoption of LED lights due to its improved energy efficiency and longer lifespan is further accelerating the LED lighting market expansion.
- For instance, according to Press Information Bureau (PIB), Indian states such as Andhra Pradesh installed 29,47,706 units of LED street lights as of December 2023, followed by Telangana with 16,82,878 units, Uttar Pradesh with 12,90,949 units, Maharashtra with 11,05,231 units, and Rajasthan with 10,73,238 units among others. The above factors are further propelling the market in the Asia-Pacific region.
North America is estimated to reach over USD 45.70 Billion by 2032 from a value of USD 24.57 Billion in 2024 and is projected to grow by USD 26.11 Billion in 2025.
In North America, the growth of LED lighting industry is driven by rising investments in residential, commercial, and industrial construction projects along with increasing installation of sustainable lighting solutions among others. Similarly, the rising demand for energy-efficient and durable lighting solutions in residential, commercial, and industrial spaces are further contributing to the LED lighting market demand.
- For instance, according to the United States Census Bureau, the total number of new residential units sold in the United States reached up to 666 thousand units in 2023, witnessing an increase of nearly 4% in comparison to 641 thousand units in 2022. The above factors are projected to drive the LED lighting market trends in North America during the forecast period.
The regional analysis depicts that rising adoption of LED lights in residential and commercial sectors such as offices, hotels, and others are driving the LED lighting market demand in Europe. Additionally, factors such as rising automotive production and increasing integration of LED lights in modern automobiles are significant aspects driving the market growth in Europe. Furthermore, as per the market analysis, the market demand in Latin America, Middle East, and African regions is expected to grow at a considerable rate due to factors such as rising pace of urbanization, increasing investments in development of residential and commercial spaces, and growing transportation industry among others.
Top Key Players and Market Share Insights:
The global LED 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 LED lighting market. Key players in the LED lighting industry include-
- Signify Holding B.V. (Netherlands)
- GE Lighting (US)
- Samsung (South Korea)
- LSI Industries Inc. (US)
- Eaton (Ireland)
- Cree Lighting USA LLC (US)
- Osram Licht AG (Germany)
- Hubbell (US)
- Dialight (UK)
- Zumtobel Group (Austria)
Recent Industry Developments :
Product Launch:
- In November 2023, Signify launched its new UltraEfficient range of LED lamps for application in roadway, hospitality, retail, and other sectors. The LED lamps fulfil the highest energy label A, under the Ecodesign Regulation and Energy Labelling Regulation.
Partnerships & Collaborations:
- In September 2024, ams OSRAM extended its partnership with LEDVANCE, which enables LEDVANCE to continue exclusive licensee of OSRAM brand for general lighting lamps. Additionally, the licensing partnership will also include luminaires in general lighting outside of China, Hong Kong, and Macao.
LED Lighting Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 155.70 Billion |
| CAGR (2025-2032) | 8.7% |
| By Product Type |
|
| By Installation Type |
|
| By Sales Channel |
|
| By End-Use |
|
| By Region |
|
| Key Players |
|
| 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 |
|
Key Questions Answered in the Report
How big is the LED lighting market? +
The LED lighting market was valued at USD 84.46 Billion in 2024 and is projected to grow to USD 155.70 Billion by 2032.
Which is the fastest-growing region in the LED lighting market? +
Asia-Pacific is the region experiencing the most rapid growth in the LED lighting market.
What specific segmentation details are covered in the LED lightings report? +
The LED lightings report includes specific segmentation details for product type, installation type, sales channel, end-use, and region.
Who are the major players in the LED lighting market? +
The key participants in the LED lighting market are Signify Holding B.V. (Netherlands), GE Lighting (US), Cree Lighting USA LLC (US), Osram Licht AG (Germany), Hubbell (US), Dialight (UK), Zumtobel Group (Austria), Samsung (South Korea), LSI Industries Inc. (US), and Eaton (Ireland).
