Global Market for Lighting in Commercial Buildings Will Grow at a Compound Annual Growth Rate of 2.5% Through 2031

The performance of LED lighting products has improved dramatically over the past 15 years. Simultaneously, prices have declined, making the financial case for LED lighting compelling and leading to widespread adoption in commercial buildings.

According to a new report from Guidehouse Insights, because of anticipated increases in LED shipments between 2022 and 2031, global lamp and luminaire revenue is expected to grow modestly, at a 2.5% compound annual growth rate (CAGR).

Standard market forces—the confluence of LED products' high level of performance and relatively low cost with increasing energy prices and concerns about the environmental impacts of building operations—are sufficient to increase LED adoption.

Though LED lighting systems have become the default choice for new construction and retrofit lighting installations, a sizable global installed base of legacy lighting products remains, fostering continued non-LED lamp sales for replacement of failed lamps.

Recently, government interventions, including lighting efficiency regulations and financial subsidies, have been critical drivers of LED market penetration. Because LED lamps and luminaires are long-lasting, increasing market penetration of this technology is slowing market growth, according to the report.