HAZARDOUS LOCATION LED LIGHTING MARKET ANALYSIS

The global hazardous location LED lighting market size was valued at USD 451.00 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 8.10% from 2022 to 2030. There are several factors driving the growth of the global hazardous location LED lighting market. These include increased offshore activities and the growth of the oil and gas industry. Increased demand for energy efficient LED lighting solutions is also expected to help propel the market.

Global Hazardous Location LED Lighting Market: Regional Insights

The global hazardous location LED lighting market is regionally divided into North America, Latin America, Asia Pacific, Europe, and Middle East & Africa.

North America is anticipated to gain major share in the global hazardous location LED market over the forecast period, owing to launch of different reforms mandating LED lights manufacturers for adhering to industry procedures and standards. The manufacturing of the lighting systems in the region need to be done by following the regulations regarding use of specific equipment in hazardous standards, such as IEC, NEC, other regional standards, which is expected to boost growth of the global hazardous location LED lighting market during the forecast period.

Moreover, Asia Pacific is anticipated to witness substantial growth of the global hazardous location LED lighting market over the forecast period. Majority of chemical plants, mining activities, and power plants are housed in the Asia Pacific region. The demand for LED lighting depends on retrofitting, and the newer projects involving LED lightings in construction and infrastructural activities. For instance, in August 2019, China, invested about US$ one billion for the green financing toward coal-related projects that were conducted in the first half of 2019. Thus, demand for LED lighting for hazardous locations is increasing in the region, which in turn is expected to propel growth of the market across the region.

Figure 1: Global Hazardous Location LED Lighting Market Share (%), By Region, 2021

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Global Hazardous Location LED Lighting Market Drivers:

Implementation of regulations regarding use of proper lighting for safety of workers in hazardous locations to boost the market pace

The need for illuminance in a hazardous locations depends on the requirement for detail visibility and the intensity of the environment. In such conditions regulations for ensuring proper lighting for safety of the workers act as an important factor. For instance, as per the Management of Health and Safety at Work Regulations 1999 (MHSW), companies are needed to decide in the workplace for covering health and safety, including lighting adhering to the suitability and adequacy to meet the need of the workplace. Thus, implementation of such regulations is expected to drive the demand for hazardous location LED lighting, which in turn will boost growth of the market.

Growing demand for energy-efficient and cost-effective lighting solutions to propel the market growth

Enterprises and governments around the world are focusing on finding solutions to reduce consumption of energy and cost of lighting solutions. LED solutions, in terms of luminous intensity and energy consumption are technically advanced and efficient as compared to their other counterparts such as incandescent lamps. Due to the potential of LED lighting solutions to save maintenance and operating costs for operators of the facilities, the demand for hazardous location LED lighting is expected to grow in the near future, and this is expected to propel growth of the market over the forecast period.

Global Hazardous Location LED Lighting Market Opportunities:

Growing demand for wireless LED lighting is also creating several growth opportunities in the global hazardous location LED lighting market. The lighting industry is involved in experimenting with wireless lighting, specifically in retrofit projects. Moreover, the radio-frequency-based systems make use of main power lines for carrying data to and from the light fitting. As the wireless lighting technology is replacing the traditional wired lighting systems, the market is expected to witness several growth opportunities.

Furthermore, increasing technological developments in the form of IoT enabled lightings is expected to create growth opportunities in the global hazardous location LED lighting market over the forecast period.  With the adoption of IoT and 5G connectivity, the transition of data is likely to become a speedy process in lighting industry. Moreover, growing efforts for reduction of environmental impact in several countries around the globe, is also expected to create several growth opportunities in the global hazardous location LED lighting market over the forecast period.

Global Hazardous Location LED Lighting Market Trends:

Increasing focus of governments on energy saving is a recent trend

Government around the world are focusing on energy saving, which is creating demand for LED lighting. LEDs are the long-lasting and most energy-efficient alternatives. Governments of developed and emerging regions are enacting stringent regulations that require the use of LEDs in lighting applications. These regulations are also mandating manufacturers to achieve minimum lighting efficiency standards. This has created substantial demand for hazardous location LED light fixtures, which in turn is driving growth of the market.

Market players are adopting various growth strategies is a growing trend

Major players in the global hazardous location LED lighting market are increasingly focusing on adoption of both inorganic and organic growth strategies such as development and launch of novel products, acquisitions, and contracts in order to gain a strong position in the market. This in turn is expected to propel growth of the market in the near future. For instance, in October 2020, Hubbell announced the launch of its novel Luna LED Temporary Floodlight. The new Floodlight is rated IP66 and IP67 and is dust-tight and protected against powerful jets of immersion and water.

Global Hazardous Location LED Lighting Market Restraints:

High cost of replacing traditional lamps to LED lighting to impede the market growth

A network of LED lighting need a completely new infrastructure by industrial consumers for enabling the technology due to various standards employed by the LED as compared to traditional lamps. The cost required for this infrastructure becomes high as it has to replace the old or conventional lamps. As per the Institute of Energy Economics, the expected expenditure for Japan to switch all the lighting in the country to LED lights is JPY 16 trillion. Thus, this factor can impact the adoption of LED lighting, which in turn is likely to obstruct growth of the market. However, the cost of these LED lighting solutions is becoming significantly affordable with time, and as the proper use of LED technology can be effective in terms of labor and electrical wiring cost, it is likely to drive the adoption of LED technologies.

Growing concerns about diode quality to hinder the market pace

The concerns reading the diode quality in LED solutions is increasing, which depends highly upon the ambient operating temperature. The poor quality of diodes reflects on illuminance of LED solutions. This impacts use LED lighting technology across several applications including hazardous location lighting. This factor in turn is anticipated to hinder growth of the global hazardous location LED lighting market over the forecast period. Thus, major players in the market are expected to overcome this issues with the several launches of appropriate products.    

Figure 2: Global Hazardous Location LED Lighting Market Share (%), By Class, 2021

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Global Hazardous Location LED Lighting Market Segmentation:

The global hazardous location LED lighting market report is segmented into Class, Device Type, and End User Industry

Based on Class, the market is segmented into Class-I, Class-II, Class-III. Out of which, Class I is expected to dominate the global market over the forecast period and this is attributed to the demand for LED lighting in class I areas such as gas stations, petroleum refining facilities, utility gas plants, and others. Class I hazardous locations are regions with flammable vapors/gases present in amounts that can ignite. The demand for LED lights is high in these regions, which in turn supports growth of the market.

Class II segment is also expected to witness significant growth in the near future and this is owing to the growing adoption of LED lightings in class II locations. These locations include coal mines, granaries, medicine producing factories, sugar or starch plants among others, as these locations are hazardous due to the presence of combustible dust.

Based on By Device Type, the market is segmented into Zone 0, Zone 20, Zone 1, Zone 21, Zone 2, and Zone 22. Out of which, Zone 0 is expected to dominate the global market over the forecast period and this is attributed to the growing demand for portable lighting in Zone 0 hazardous locations such as tank inspections. Market players such as Wolf safety announced the launch of wolf ATEX Zone 0 Flood Bank to provide hazardous region workers a self-contained and portable LED temporary floodlighting solution in the regions with extreme hazard.

Zone 1 segment is also expected to witness significant growth in the near future and this is owing to the growing adoption of portable LEDs. Hazardous areas are divided into Zone 1, owing to the barrier-free transitions in between these zones, and the special need for these zone apply for the portable electrical equipment. Thus, the due to growing adoption of portable LEDs, the segment will witness strong growth.

Based on End User Industry, the market is segmented into Oil and Gas, Petrochemical, Industrial, Power Generation, Pharmaceutical, Processing, and Other End user Industries. Out of which, Oil & Gas is expected to dominate the global market over the forecast period and this is attributed to the high demand for LED lighting in the industry due to the presence of hazardous chemical compounds, gas, and oil in oil and gas processing and refining facilities possessing risk of electric sparks that can ignite these compounds.

Petrochemical segment is also expected to witness significant growth in the near future and this is owing to the steadily growing demand for hazard location LED lighting, owing to the replacement of traditional lighting solutions with LED because of safety standards and regulations that operating petrochemical facilities have to follow.

Global Hazardous Location LED Lighting Market: Key Developments

In May 2022, Emerson Electric Co. introduced TopWorxTM DX PST with HART 7. The units provides valve data and diagnostic information, which allows digital transformation of process applications.

In May 2020, Eaton announced the launch of the latest LED explosion-proof lighting, HRL series, with significant luminous efficacy with nearly 50% cost-saving as well as energy consumption compared to conventional ones and it is capable of powerfully boost the safety of working conditions.

In June 2019, Eaton announced that its Crouse Hinds series CEAG ExLin linear LEDs was approved and certified for zone 1 and zone 2 hazardous area environments.  The explosion-protected LED fixture offers its industrial customer with more cost-efficient lighting as compared to conventional fluorescent fixtures.

In May 2019, Emerson launched a novel solutions for the oil & gas industry for easily and safely illuminating land-based drilling rigs.

Global Hazardous Location LED Lighting Market: Key Companies Insights

The global hazardous location LED lighting market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global hazardous location LED lighting market are Worksite Lighting LLC, DCD Technologies ME FZCO, Azz Inc., Nemalux Inc., IKIO LED Lighting, Luceco Middle East FZCO, Glamox UK, WAROM Technology MENA FZCO, SA Equip, Shenzhen CESP Co. Ltd., Raytec Ltd., PROLUX International FZ LLC, Hilclare Lighting, Munira Lighting (AL Hatimi Trading FZE), Hubbell Limited, Emerson FZE (Emerson Electric Co.), Current Lighting Solutions LLC (GE Current), ABB Installation Products Inc., Larson Electronics LLC, R.Stahl Limited, Technology Co. Ltd., Digital Lumens Inc. (OSRAM), Dialight PLC, and Eaton Corporation.

*Definition:

Hazardous Location LED Lighting is a lighting solution designed to provide safety and improved vision in industrial and commercial facilities that operate in hazardous environments. These areas may contain combustible dusts, gases and flammable vapors. Improper lighting can cause an explosion, and using LED lights is a proven method to prevent such accidents.