Declining Manufacturing Cost of LEDs Is Electrifying Market Growth

The global general lighting market is expected to grow at a CAGR of 5.74% during the period 2018-2022. One trend in the market is growing number of households and urbanization. The rapid urbanization worldwide, particularly in emerging economies, is leading to the increasing demand for lighting devices from a growing number of households. The residential segment is one of the major contributors to the growing demand for lighting devices. The demand for general lighting (lamps and luminaires) in the residential segment is expected to grow at a CAGR of 6.12%.

According to the report, one driver in the market is the declining manufacturing cost of LEDs. The manufacturing cost of LEDs has declined since 2012 and will continue to decline during the forecast period. This is mainly because of the declining ASP of chips and components used in the manufacturing process of LED devices. The decline in the manufacturing cost of LEDs is leading to a decrease in the initial installation cost of LED lamps and fixtures.