LED Market Size to record USD 96.82 Bn growth

The global LED market is forecasted to grow by USD 96.82 billion, accelerating at a CAGR of 13.10% between 2020 and 2025.

Research group Technavio segments the market by application (general lighting, backlighting, automotive lighting, and others), geography (APAC, Europe, North America, South America, and MEA), and product (luminaires and lamps).

Governments and regulatory bodies in developed nations such as the US have implemented stringent reforms related to the use of energy. Several cities in the US such as Seattle, Minneapolis, Oklahoma City, St. Louis, Richmond, Orlando, Hartford, Milwaukee, Nashville, and Phoenix are observing high adoption of LEDs.

Similarly, the European Union has established a framework called the Ecodesign Directive, which focuses on improving the energy efficiency of products and removing inefficient lamps from the European market. Such measures are creating significant growth opportunities for vendors operating in the market.

APAC to dominate the LED market with a 50% share and the market will record the highest growth in the region during the forecast period. The market in APAC is growing at a rapid rate due to the increased demand for LEDs from commercial and residential end-users. The region is emerging as a global hub for industries such as retail, hospitality, and healthcare. Many multinational companies are setting up their manufacturing facilities in the region due to the availability of low-cost labor and raw materials. Moreover, the thriving IT infrastructure in the region is expected to foster the growth of the LED market in APAC during the forecast period.