Africa LED Lighting Market Size

Africa LED Lighting Market Analysis

The Africa LED Lighting Market size is estimated at USD 4.01 billion in 2024, and is expected to reach USD 5.94 billion by 2029, growing at a CAGR of 8.17% during the forecast period (2024-2029).

The LED technology is taken over pretty much every application of lighting, as the LEDs are more reliable, robust, more power-efficient, and cleaner sources of light compared to the other conventional sources like Compact Fluorescent Lamps (CFLs) and incandescent lights.

• Light Emitting Diode, or LED, is the electronic component comprising a semiconductor chip, emitting light as current passes through it. The transition of electrons among the energy bands results in a release of energy in the form of light. An array of small LEDs on a chipset or a vertical array is used as a light source, sold commercially in different forms, including lamps, batons, bulbs, strips, etc. LEDs are environment-friendly compared to other light alternatives and are gaining popularity worldwide, including in Africa.
• Since other light sources come with harmful heating effects and greenhouse gases, LEDs are promoted internationally to tackle the detrimental impact of different lighting options. The use of LED helps address the power shortage and the carbon footprints directly and indirectly. Hence, governments in the African region are also promoting the use and sales of LEDs. For instance, according to africa.com, in May 2021, an amendment has proposed the representatives from Africa to the Minamata Convention on Mercury. The restraint from the special exemptions for mercury in lighting would pave the way for LED for mass adoption, relieving the power grids through energy-saving across the regions.
• However, the penetration of electricity remains a major hurdle, affecting the demand for LED lighting. Government and private organizations are looking forward to expanding the reach of electricity through off-grid power alternatives and boosting conventional and renewable energy generation projects. For instance, according to the African Development Bank Group, in February 2022, South African Redstone concentrated solar power (CSP) project achieved its first debt drawdown on one of the major renewable energy investments in South Africa. The African Development Bank acted as the Mandated Lead Arranger (MLA) and Coordinating Bank for the ZAR 11.6 billion total investment, committing ZAR 2.306 billion to the transaction.
• The economic decisions after the COVID-19 pandemic have affected African countries' general economic and trade activities. Importing items from Chinese counterparts and other countries has challenged the local manufacturers. However, new local entrants in the market, along with decent investments for LED lighting manufacturers, will continue the growth of the sector in the region.