Architectural LED Products Market to Surpass US$ 23.6 Bn by 2030

The “Global Architectural LED Products Market, by Product Type (Solar, and Conventional (Lamp, Strip, and Linear), by End-use (Residential (Retail, IT & Telecommunication, and Banking, Financial Services & Insurance (BFSI), and Commercial (Media & Entertainment, Healthcare), by Application (Cove Lighting, Backlight, In Ground, Wall Washing, and Others), and by Geography (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Global Forecast to 2027”, is valued at US$ 9207.5 million in 2022, witnessing a CAGR of 14.2% during the forecast period (2023-2030), as highlighted in a report published by Coherent Market Insights.

An LED lighting fixture is an electric lamp that produces light with the use of one or more Light-emitting Diodes (LEDs). LED lights offer efficient performance, long life span, and utilize only a fraction of energy as compared to traditional incandescent bulbs. LEDs don't require colour filters because they acquire their colours directly from semiconductor chips, making them energy-efficient. LEDs are next-generation lighting techniques that can easily be directed on facades, which is why they are used in commercial architectures. Moreover, LED lamps are used for displaying messages on billboards in commercial buildings and malls, where it works as a crowd puller.

Global Architectural LED Products Market: Drivers

Cost Savings

The utilization of architectural LED products brings about significant cost savings for individuals and businesses. LED lights offer exceptional energy efficiency, consuming significantly less electricity compared to traditional lighting technologies. This translates into lower electricity bills and reduced energy consumption, resulting in substantial cost savings over time.

Another aspect contributing to cost savings is the longer lifespan of LED lights. They have a significantly extended operational life compared to traditional bulbs, reducing the frequency of replacements and associated maintenance costs. With LED lights, individuals and businesses can minimize the expenses and inconvenience related to changing bulbs frequently. For instance, in 2023, the transition of street lights from high-pressure sodium lamps to LED has cut down on Kolkata Municipal Corporation's electricity bill by nearly US$ 60,98,980.00 a year.

Government Initiatives and Regulations

Many governments worldwide have implemented policies and regulations to promote energy efficiency and reduce carbon emissions. These initiatives include the phasing out of inefficient lighting technologies and providing incentives for the adoption of energy-efficient solutions like LED products. Government support and favorable regulations have contributed to the growth of the global architectural LED products market by encouraging consumers and businesses to switch to more sustainable lighting options. For instance, in 2020, the India government launched the "Unnat Jyoti by Affordable LEDs for All" (UJALA) scheme, which aimed to replace traditional incandescent bulbs with energy-efficient LED bulbs. Under this scheme, LED bulbs were provided to consumers at subsidized rates, making them more affordable and accessible.

Global Architectural LED Products: Opportunities

Customization and Personalization

Customization and personalization are the key trends driving the expansion of the global architectural LED products market. As technology advances, LED lighting solutions offer increasingly sophisticated options for customization and personalization, allowing users to create unique lighting experiences tailored to their specific needs and preferences. With architectural LED products, customization options extend beyond basic brightness control. Users can now adjust color temperatures, choose from a wide range of colors, and create dynamic lighting effects. This level of customization enables individuals and businesses to create desired atmospheres, enhance visual aesthetics, and set the mood for different settings.

Moreover, personalization extends to the design and form factor of LED products. Manufacturers offer a variety of shapes, sizes, and styles to complement different architectural designs and interior décors. Whether it is recessed lights, linear strips, pendant lights, or decorative fixtures, LED products can be customized to seamlessly integrate with the overall design scheme. The ability to personalize LED lighting solutions has found applications in various settings. In residential spaces, homeowners can create personalized lighting scenes for different activities or moods. In retail environments, LED lighting can be tailored to highlight specific products or create immersive shopping experiences. In hospitality settings, customized lighting can enhance guest comfort and create unique ambiances.

Global Architectural LED Products Market: Restraints

Market Fragmentation and Competition

The global architectural LED products market is characterized by market fragmentation and intense competition. With the growing demand for LED lighting solutions, numerous players have entered the market, resulting in a fragmented landscape with multiple competitors vying for market share. This fragmentation is evident across various segments including manufacturers, distributors, and service providers. The presence of numerous players leads to fierce competition, driving innovation, product development, and competitive pricing strategies. Companies in the market focus on differentiating themselves through product quality, performance, design, and customer service to gain a competitive edge. Additionally, strategic partnerships, mergers, and acquisitions are common strategies adopted to strengthen market position and expand market reach. To counterbalance this, one should focus on innovation and differentiation. By continually investing in research and development, companies can introduce new and unique features, designs, and functionalities in their architectural LED products. These innovations can set them apart from competitors and attract customers who value cutting-edge technology and customized solutions. Advancements in energy efficiency, smart controls, and integration with emerging technologies can provide a competitive advantage in the market.

Global Architectural LED Products: COVID-19 Impact Analysis:

The global architectural LED products market experienced significant impact from the COVID-19 pandemic. The pandemic disrupted the supply chain, causing delays and shortages in the production and distribution of LED lighting solutions. Furthermore, the construction and infrastructure sectors faced slowdowns and delays, leading to a reduced demand for architectural LED products as many projects were put on hold. Consumer spending patterns shifted, with a focus on essential goods and services, resulting in decreased discretionary spending on lighting upgrades. However, the pandemic also highlighted the importance of health and safety, driving a demand for LED solutions with features like UV-C disinfection and circadian lighting. Additionally, the growing emphasis on remote control, energy management, and automation led to increased demand for smart lighting solutions. As economies recover and construction activities resume, the global architectural LED products market is expected to gradually rebound, with a renewed focus on energy efficiency and sustainability. For instance, during the height of the pandemic in 2020, many non-essential businesses and commercial spaces were forced to shut down or operate with limited capacity due to lockdown measures and safety regulations.

This led to a significant decline in the demand for architectural LED products in New York, U.S. as construction projects were put on hold and businesses scaled back their operations. Many planned lighting upgrades and installations were postponed or canceled, resulting in reduced sales and revenue for LED lighting manufacturers and distributors in the region.

Key Takeaways:

The global architectural LED products market accounted for US$ 10.6 Bn in 2023 and in 2030 the market is estimated to grow by US$ 23.6 Bn with a CAGR of 12.1% during the forecast year from 2023-2030.

Asia Pacific dominated the global architectural LED products market in 2022, accounting for 40.0% share in terms of value, followed by North America and Europe, respectively.

Asia Pacific is expected to hold a dominant position in the global architectural LED products market during the forecast period. This is due to the increasing demand for energy-efficient in the region, as well as the growing construction industry. China is the largest market in the region, followed by India and Japan.

To know the latest trends and insights prevalent in the global architectural LED products market, click on the link below:

https://www.coherentmarketinsights.com/market-insight/architectural-led-products-market-3352

Global Architectural LED Products Market - Trends

Smart Lighting and IoT Integration

Smart lighting and IoT integration is a transformative trend that is revolutionizing the global architectural LED products market. Smart lighting systems leverage advanced technologies and connectivity to enhance functionality, energy efficiency, and user experience. With IoT integration, LED lighting can be seamlessly connected to networks, enabling control and automation through various devices such as smartphones, tablets, and voice assistants. This connectivity allows users to remotely adjust lighting settings, create schedules, and customize lighting scenes according to their preferences and needs.

One of the key benefits of smart lighting is energy efficiency. IoT-enabled sensors and controls enable precise monitoring and management of lighting usage, optimizing energy consumption based on occupancy, natural light levels, and user preferences. This leads to significant energy savings and cost reductions. Smart lighting systems also offer enhanced convenience and comfort. Through IoT integration, lighting can be synchronized with other smart devices and systems in the building, creating a cohesive and intelligent environment. For example, lights can be automated to turn on when someone enters a room, adjust brightness based on natural light levels, or respond to voice commands.

Integration of Sustainable Materials

The integration of sustainable materials is a growing trend in the global architectural LED products market, driven by the increasing focus on environmental responsibility and sustainability. Manufacturers are seeking to reduce the environmental impact of their products by incorporating sustainable materials throughout the design and production process. One aspect of sustainable material integration is the use of recycled or upcycled materials. LED lighting products can be made with components or housing materials derived from recycled plastics, metals, or glass. This helps reduce waste and promotes the circular economy by giving new life to materials that would otherwise end up in landfills.

Another approach is the utilization of bio-based materials. These materials are derived from renewable resources such as plant-based plastics or natural fibres. Bio-based materials offer a more sustainable alternative to traditional petroleum-based plastics, as they have a lower carbon footprint and are biodegradable or compostable. Additionally, manufacturers are adopting low-impact manufacturing processes that minimize energy consumption and waste generation. This includes employing energy-efficient production techniques, optimizing material usage, and implementing recycling or reclamation programs for waste materials generated during manufacturing.

By integrating sustainable materials, architectural LED products can contribute to reducing environmental harm, conserving natural resources, and lowering carbon emissions. This aligns with the increasing demand for eco-friendly and socially responsible lighting solutions from consumers, businesses, and regulatory bodies.

Global Architectural LED Products Market - Key Developments

In 2020, Signify N.V., a lighting corporation made new developments in LED products that it had been advancing over the years like its smart lighting offerings and emphasizing human-centric lighting solutions, the integration of tunable white lighting, which allows users to adjust the color temperature of the light, and circadian lighting, which aims to mimic natural daylight patterns to support human well-being, have been key focuses for Signify during this time
In 2020, OSRAM, a photonics company developed IoT-enabled lighting solutions and introduced innovative products. It made significant strides into incorporating sensors and connectivity features into their lighting systems to enable smart control and energy management. The introduction of wireless lighting control systems and integrated lighting solutions for smart buildings has been a key part of OSRAM's efforts.
In 2021, Eaton, a multinational power management company introduced new fixtures and luminaires to its architectural LED product lineup, emphasizing improved energy efficiency and advanced control options. These advancements aim to provide customers with more efficient lighting solutions while offering enhanced customization and control capabilities.

Global Architectural LED Products Market: Competitive Landscape

The key companies operating in the global architectural LED products market are Signify N.V., Cree, Inc., Zumtobel Group AG, Acuity Brands, Inc., Eaton Corporation, Hubbell Incorporated, General Electric Company, Inc., Panasonic Corporation, Toshiba Lighting and Technology Corporation and Samsung Electronics Co., Ltd.

Detail Segmentation of the Global Architectural LED Products Market:

Global Architectural LED Products Market, By Product Type: