LED lighting market size projected to reach USD 124.7 billion

The LED lighting market size is estimated to be USD 75.3 billion in 2022 and is projected to reach USD 124.7 billion by 2027, at a CAGR of 10.6% during the forecast period.

The booming lighting industry contributes most to the rising demand for energy-efficient products and modifications in the existing lighting products using LED technology.

Moreover, technological innovations and rising environmental concerns have further accelerated the growth of LED lighting market. Competitive manufacturing costs, high economic growth rate, and large-scale industrial constructions in residential and commercial segments are some of the other major factors driving the growth of the LED lighting market.

Decorative luminaires are expected to record the highest CAGR during the forecast period. The easy availability of decorative lights with a variety of color combinations in attractive shapes and sizes for interior decoration, coupled with the growing use of highly energy-efficient products to reduce energy bills, is the major factor propelling the growth of the market. Bullet, candle, flare, globe, and any other decorative lamp shapes, integrated chandeliers, single-head pendants, wall sconces, lanterns, and cove luminaire products fall under the category of decorative lighting. Commercial and hospitality applications contribute most to the increasing demand for decorative lighting.

A-type and T-type lamps have high penetration in residential applications, which, in turn, leads to a larger market size of the overall lamps category compared to luminaires. The enormous rise in the use of LED lighting solutions has changed every aspect of modern life.

The modern technology equipped with LED lamps enables improved efficiency with low maintenance costs. The warm light from the LED lamps allows for complete brightness without energy loss. Compared to the lifespan of average incandescent bulbs, the lifespan of an LED light is far superior. A-type LED lamps are also referred to as plug-and-play. These lamps directly replace traditional lamps such as compact fluorescent (CFL) and linear fluorescent. A-type lamps are considered the classic type of light bulb that has been used for general-purpose lighting for over 100 years.