Global Lighting Market Outlook

  • The  $134 billion  global lighting market is set to grow at 10.4 percent from 2017 to 2025, which is driven by trends, such as  adoption of energy-efficient lighting systems  
  • The global lighting market is dominated by Asian countries, due  to the low manufacturing cost, followed by  Europe and North  America,  with shares  of 20 percent  and  15 percent , respectively  
  • In the  next 4 – 5 years , the growth rate is forecast to decline  by 1  percent each year, until 2020 . This is due to the  decrease in  greenfield construction projects in the commercial sector  
  • Currently,  LED penetration level  in the retail segment in North  America is ~ 40 – 45 percent,  and in the next 3 – 4 years, it is  expected to reach  ~65 – 75 percent

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Global Lighting Market: Global Scenario

  • The $134.93 billion global lighting market is undergoing a massive transformation, driven by two trends, such as the increasing adoption of LED technology and usage of connected lighting systems or smart systems

Market Outlook 

  • The global lighting market is growing steadily, and it is expected to grow at a CAGR of more than 10.4 percent between 2017 and 2025 
  • The general lighting market is expected to grow at a CAGR of 5 percent and the smart lighting segment at 22 percent by 2023
  • The annual growth rate in lighting product revenue declined from 5 percent in 2013 to 3 percent in 2016, and it is expected to remain stable until 2020 
  • The global lighting industry is dominated by the Asian market, with the share of ~40 percent, followed by the developed market, namely Europe and North America, with shares of 20 percent and 15 percent, respectively 
  • Global lighting demand in the residential segment is expected to grow at a CAGR of 6.12 percent from 2018 to 2022

Global Lighting Market: Key Market Segments

  • The general lighting segment dominates the global lighting market, with ~75 percent of the share. Currently, in general, the lighting segment, traditional energy-efficient technologies are the mainstream, but in the next five years, LED technology is expected to dominate the market globally

Market Outlook 

  • General lighting is the largest lighting market segment, with the total market size of about $82.1 billion in 2017. The general lighting market is expected to constitute around 80 percent of the total lighting market by 2020

  • APAC accounts for the largest share in the general lighting segment with 43.4 percent, i.e., $35.6 billion. China accounted for 21 percent of the global market, amounting to $17.2 billion. Europe accounts for 30 percent of the market share in the general lighting segment

  • The automotive lighting segment is growing steadily, and the growth is expected to grow at a CAGR of 7.23 percent from 2018 to 2023. Automotive lighting is expected to be the major driver from 2017 to 2023, with the market share being 20 percent of total lighting in 2017

  • Due to the impose of stringent government regulations on traditional lighting products, the product sales from that segment is expected to reduce by almost 13 percent annually between 2016 and 2020

  • However, on the other side, due to the long life span and price erosion of the LED lighting products, the market is expected to grow dramatically by almost 15 percent annually to reach about $65 billion by 2020