The Solid State Lighting Market to Reach US$ 75.19 Billion by 2030, Owing to increasing demand for cost effective and energy efficient lighting solutions.
The global solid state lighting market was valued at US$ 33.45 Billion in 2022 and is expected to surpass US$ 75.19 Billion by 2030, registering a CAGR of 10.65% during the forecast period (2022-2030), according to the Global Solid State Lighting Market, by Type (LED, OLED and PLED), by Application (Indoor Lighting and Outdoor Lighting), by Installation Type (New Installation, Retrofit), by End User (Commercial, Residential, Industrial (Automotive, Healthcare, Entertainment, and others) by Region (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa), published by Coherent Market Insights.
Solid state technology is a developing lighting technology that sources its illumination functionality from existing LED (Light Emitting Diode), PLED (Polymer Light Emitting Diode), OLED (Organic Light Emitting Diode), and other similar technologies. Solid state lighting system includes large number of semiconductors, as semiconductors converts electricity into light. Solid state lighting devices consumes less energy, and has a longer life span. Solid state lighting devices are available in a variety of sizes to meet demands and requirements of a wide range of consumers. Due to its excellent characteristics and global demand, the global solid state lighting market is expected to witness growth. The market is expected to witness growth, owing to improved light quality, smaller and more flexible light, and weatherproof design combined with inherent safety. Solid state lighting emits no harmful chemicals or ultraviolet radiation, and thus, it is safe for the environment.
Global Solid State Lighting Market- Drivers
Favorable government initiatives and frameworks to promote adoption of energy efficient lighting products
Policy initiatives of various governments to promote the usage of energy efficient lighting, smart city projects, and rising demand from the automotive industry are some of the factors that are expected to drive the market growth. For in January 2020, the Government of India announced the 5 year completion of LED Street Lighting National Programme (SLNP) and Unnat Jyoti by Affordable LEDs for All (UJALA), country’s zero subsidiary program. Through these initiatives, the country deployed approximately 10.3 million smart LED streetlights, enabling savings of approximately 6.97 billion kWh of energy per year. Considering the data, the demand for LED lights is anticipated to grow over the forecast period. Rising product innovation resulting in higher light output, energy efficiency, and product development is expected to drive the market growth. Increasing usage of LEDs in medical devices and biological implants, due to its mobility, light weight, thinness, and low power consumption. The development of white LEDs with software controlled brightness and color, and rising demand for flexible LEDs in smartphones, are expected to drive the market growth.
Global Solid State Lighting Market- Opportunities
Improved operational efficiency of LED solid state lighting products
Solid state lighting saves more energy as compared to traditional lighting solutions. For instance, according to the data available on the Natural Resources Defense Council (NRDC), the operating cost of 40W Standard Incandescent bulb is US$ 5.34 per year compared to US$ 0.67 per year of 5W LED bulb. Rising energy costs is expected to boost demand for solid state lighting, in order to reduce the energy bills and carbon footprint. Lifespan of solid state lighting solutions is longer as compared to that of traditional lighting solutions, and this offer significant cost savings to businesses and consumers.
Global Solid State Lighting Market- Restraints
High initial cost of LEDs compared to ICLs and CFLs
High cost of solid state lighting is expected to hamper the market growth. For instance, according to the statistics from the Natural Resources Defense Council (NRDC), 10W LED bulb costs approximately US$ 13 compared to US$ 0.50 of 60W standard incandescent bulb. Furthermore, inefficiency of solid state lighting in heat-sensitive applications in industrial manufacturing processes is also expected to hinder the market growth. Rising demand for displays in medical equipment such as ventilators and respirators is expected to boost demand for solid state lighting in the near future.
Global Solid State Lighting Market- COVID-19 Impact Analysis
COVID-19 pandemic has had a mixed impact on the global solid state lighting market. The pandemic further slowed the economic activity and a decline in consumer demand for lighting products. The pandemic caused disruptions in the supply chain, with many manufacturers and suppliers reported difficulties in sourcing raw materials and components due to travel restrictions. Moreover, the pandemic resulted in a decline in consumer spending on non-essential items. This led to a decline in sales for lighting products, including solid state lighting products. While the pandemic had a negative impact on the global solid state lighting market in the short term, the long-term outlook remains positive, as the demand for energy efficient and sustainable lighting solutions is anticipated to continue to grow.
To know the latest trends and insights prevalent in this market, click the link below:
https://www.coherentmarketinsights.com/market-insight/solid-state-lighting-market-4582
Key Takeaways:
Global solid state lighting market was valued at US$ 33.45 Bn in 2022 and is estimated to reach a value of US$ 75.19 Bn by 2030 at a CAGR of 10.65% between 2023 and 2030.
Automotive segment held the dominant position in the global solid state lighting market in 2022, accounting for 34.3% share in terms of value, owing to increasing approval and launch of new products.
Global Solid State Lighting Market- Trends
Rising penetration of LED lighting products across multiple industry vertical
Rising adoption of LED lighting across multiple industry is expected to drive the global solid state lighting market growth, owing to factors such as energy efficiency, color quality, and long lifespan of LED. In November 2021, according to the data from IEA, the government agencies and LED lighting manufacturers are emphasizing on driving the adoption of LED lighting solutions across commercial, public and residential building infrastructures. This is expected to fuel the demand for LED work lights across the globe. This trend is expected to continue as LED technology is improving, and is more cost-effective.
Global Solid State Lighting Market: Competitive Landscape
Acuity Brands, Cree Inc., Eaton, GE Lighting, Philips Lighting, Osram Group, Nichia Corporation, Seoul Semiconductor, Zumtobel Group, Everlight Electronics, GE Lighting, Mitsubishi Electric Pvt. Ltd, Intematix, Bright Light Systems, Aixtron, Applied Materials Inc., Bridgelux, and Energy Focus Inc.
Global Solid State Lighting Market- Recent Developments
In January 2023, ETi Solid State Lighting, Inc., a LED lighting solution provider, received approval from the U.S. Food and Drug Administration (FDA) for its SilentAire series of LED light fixtures. These LED light fixtures feature built-in plasma technology to kill viruses and bacteria. This technology is further combined Inc. with LED illumination and bipolar ionization technology. The availability of this product is expected to help the company in catering the demand from, healthcare and industrial spaces.
In January 2023, Infineon Technologies AG, a semiconductor equipment manufacturer, and Nichia Corporation, an LED device manufacturer, announced the launch of micro LED light engine for adaptive headlights in vehicles. This LED matrix solution will be available from 2023 in premium vehicles manufactured by German automobile companies.
