Global LED Driver Market is estimated to Witness High Growth Owing to Rising Infrastructural Developments and Government Initiatives for Energy Efficiency
The Global LED driver market is estimated to be valued at US$ 17.04 Bn in 2024 and exhibit a CAGR of 22.2% over the forecast period 2024-2031. Further, growing adoption of smart lighting solutions across industries is also contributing to the market growth.
Market Dynamics:
The Global LED driver market growth is driven by rising infrastructural developments across the globe and various government initiatives to promote the adoption of energy efficient lighting solutions. Governments of several countries are implementing policies and programs to phase out conventional lighting fixtures and promote LED adoption.
Additionally, rapid urbanization is resulting in new construction activities for commercial and residential buildings which is increasing the demand for LED lighting. LED drivers play a vital role in controlling and regulating the power to LED lights, thereby ensuring energy savings and longer lifespan of LED lights. This is further propelling the growth of the LED driver market.
Growing Demand for Energy Efficient Lighting Solutions is driving the Global LED Driver Market
LED lighting offers significant energy savings compared to traditional lighting technologies such as incandescent and fluorescent bulbs. LED lights last longer and use around 70-90% less energy than traditional lighting options. With rising electricity costs and greater focus on reducing carbon footprint, commercial, industrial and residential users are rapidly adopting LED lighting. LED lighting offers payback within 2-3 years due to lower operating costs. This growth in LED lighting adoption is fueling the demand for LED drivers globally. LED drivers are critical components that regulate the amount of power delivered to the LED lighting fixtures. Without proper drivers, LED lights would not function efficiently.
Stricter government regulations on energy efficiency are accelerating LED lighting adoption
Many governments across the world have implemented policies and regulations to promote energy efficient lighting. For example, countries in the European Union have banned the sale of incandescent light bulbs since the mid-2010s. Similarly, governments in North America and Asia Pacific have implemented mandatory minimum energy performance standards (MEPS) for lamps and lighting fixtures. Products that do not meet these MEPS cannot be sold in those markets. This has given a major push to the LED lighting industry as LED lights easily meet all existing MEPS requirements. The need to comply with government regulations is forcing commercial and industrial facility managers as well as residential consumers to replace traditional lights with efficient LED alternatives. This increasing shift to LED lighting is boosting demand for associated driver ICs and modules.
Low LED Light Prices are restraining the Growth of High-end LED Drivers
While LED light prices have dropped dramatically over the past decade due to advancement in technology and manufacturing scale, driver prices have not reduced at the same pace. As a result, the driver now accounts for a significant portion of the total cost of an LED lighting system, especially for high-end commercial applications. This price differential is prompting some customers to opt for cheaper, lower-performance drivers. It is also encouraging the proliferation of low-cost drives from Chinese and other Asian manufacturers. The availability of low-cost LED solutions is restricting the demand for premium, feature-rich drivers targeted at performance-intensive applications in industries such as horticulture.
Availability of Alternative Driver Technologies Can Erode Market Share
New and emerging driver technologies such as resonant switching and active constant current reduction (ICR) aim to deliver higher system efficiency and reliability compared to conventional linear drivers. While still in nascent stages, these alternative LED driver technologies have the potential to gain market share. Additionally, the integration of drivers right into LED packages, referred to as smart LEDs or modules, can reduce installation and labor costs for OEMs and luminaire makers. Such integrated solutions may lower the need for discrete aftermarket driver ICs and modules. If innovative alternative driver designs achieve significant commercial adoption, they could eat into the market for traditional driver ICs and modules. This threat from substitutes poses a challenge for existing LED driver vendors.
Growing Infrastructure Development Projects in Asia Pacific and Middle East Present Lucrative Opportunities
Rapid urbanization and economic growth in developing regions have triggered a wave of infrastructure investment covering buildings, highways, bridges and other construction activities. The Asia Pacific and Middle East regions in particular are witnessing massive infrastructure development projects. Since LED lighting is touted as the illumination technology of choice for new infrastructure thanks to its long life and minimal maintenance needs, this presents a multi-year opportunity for LED driver suppliers. New airports, metro networks, smart cities and specialty construction requiring reliable, efficient lighting will incorporate LEDs and boost demand for associated driver ICs and modules. LED driver vendors should tap into these ongoing mega construction projects across emerging markets.
Increase in retrofitting of conventional lighting with LED alternatives shows promising growth
Over the next few years, many commercial buildings, offices, factories and public places-built decades ago will undergo lighting retrofits. This presents a major potential market for LED drivers. According to analysts, retrofit accounts for 30-40% of the total install LED lighting market. With attractive returns on investment, building owners are keenly adopting retrofit programs. It involves removal of old fluorescent or HID fixtures and replacing them with integrated LED troffers or panel lights inclusive of drivers, controls and other smart features. The scalability of retrofitting programs provides long term recurring business for driver manufacturers beyond new construction projects. By partnering with agencies specializing in retro commissioning, LED driver suppliers can leverage the sizable retrofit upgrade activity across the globe.
Link: https://www.coherentmarketinsights.com/market-insight/led-driver-market-5125
Key Developments:
- In April 2023, ACE LED, a leader in LED driver innovation, introduced the Mini-Rail Constant Power Linear Emergency LED Driver, which is recognized as the industry's smallest LED driver, measuring just 0.83 inches high and 1 inch wide. The Mini-Rail features a wide output voltage range, an isolated relay driver, and a highly efficient LiFePO4 battery. This innovative driver provides constant power for over 90 minutes during emergencies, making it suitable for diverse lighting applications while ensuring reliability and efficiency.
- In March 2023, Cree LED, a leading manufacturer of advanced LED technology, introduced the J Series 5050C, an E-Class LED that boasts the highest efficacy in the industry for high-power LEDs, achieving 228 lumens per watt (LPW) at 70 CRI and 4000K with a power consumption of 1W. These advanced LEDs provide up to three times the light output compared to competing 5050 LEDs while maintaining the same level of efficacy. With the addition of the J Series, Cree LED now offers four performance levels in its LED portfolio, catering to a variety of directional general lighting applications.
- In March 2022, Signify Holdings, the world leader in lighting solutions, and Perfect Plants expanded their collaboration on cannabis grow lights. Signify supplies flexible GreenPower LED systems, which serve as the brain of an LED lighting system. Two new climate cells are equipped with dimmable Philips GreenPower LED toplighting compact grow lights and the Philips GrowWise Control System, providing an effective and efficient lighting solution for every growth phase. This partnership aims to enhance the cultivation of cannabis through advanced lighting technology.
- In February 2022, GE Current, a Daintree company specializing in advanced lighting solutions, fully acquired the commercial and industrial (C&I) lighting division of Hubbell Incorporated. This acquisition resulted in the formation of a world-class end-to-end lighting solutions firm, combining the strengths of both companies to enhance their offerings in the lighting market. The Hubbell C&I lighting business, known for its professional lighting and controls, will now be integrated into Current's extensive portfolio, positioning the new entity for growth and innovation in the lighting industry.
Key Players:
Acuity Brands Lighting Inc., Cree, Inc., Eaton Corporation Plc, Harvard Engineering, Hubbell Incorporated, Lutron Electronics Co. Inc., Macroblock, Inc., MEAN WELL Enterprises Co. Ltd, Osram GmbH, Signify Holding, Texas Instruments, Tridonic GmbH & Co. KG, U.S. LED, ERP Power LLC, and Delta Electronics, Inc.
