Asia Pacific LED Lighting Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Asia Pacific LED Lighting Market Trends

Increase in construction and sales of residential houses to drive the growth of the LED market

• Asia-Pacific is home to 60% of the world's population. Numerous nations in the region, notably China, are in the top ten in terms of population growth. In China's lower socioeconomic strata, as of 2019, more than 60% of residents were homeowners. In comparison to citizens of big cities, the ownership rate was substantially greater. In lower-tier cities and towns, 41% of homeowners did not have a mortgage on their home. The increased use of LEDs may be influenced by the rise in home purchases in China. Moreover, India has shown that it is possible to install LED technology quickly and extensively via campaigns promoted by the companies.
• The other nations' construction industries are prospering as their native and immigrant populations both grow quickly. For instance, the volume of residential buildings climbed by 5% in Indonesia in 2017 and by 1% in 2019, and this trend will continue throughout the forecast period due to the countries' growing populations. As a result, the rapidly expanding building sector in Asia-Pacific will increase the demand for LEDs in the regional market.
• China had the most households in Asia-Pacific as of 2021, with a total of over 449.7 million. In addition, there are 295.1 million, 68.9 million, and 48.5 million households in India, Indonesia, and Japan, respectively. There is a steady rise in the number of households in these nations, which suggests that more homes are being built and that the demand for LEDs in the Asia-Pacific is rising. Over 23.6 million of the 37.5 million passenger cars sold in 2022 in Asia-Pacific were in China. Comparatively, Asia-Pacific sold about 34.57 million passenger cars in 2021. The demand for LEDs in the region will be aided by the rise in automotive vehicle sales in Asia-Pacific.

The LED market is driven by increasing population, rising per capita income, and government subsidies

• Asia-Pacific is home to 59.7% of the world’s population, which is around 4.7 billion people, and includes the world’s most populous countries, such as China and India, and 46.3 % of the population is urban (2.14 billion people in 2019). The region's overall fertility rate is close to 2.1 births per woman. Family size has decreased to 1.7 children per woman in East Asia while maintaining a high of 2.5 children per woman in South Asia. Further, two out of every five people in the region currently live in urban areas. This ratio will increase significantly in the coming years as millions move from the countryside to towns and cities in search of employment and better opportunities. Thus, the increase in the number of households in urban areas is expected to create more LED penetration for need for illumination in region.
• This region includes several developing nations, and despite pandemic, disposable income is growing in developing countries. China's per capita income reached USD 12,732.5 in December 2022, compared to USD 12,615.7 in December 2021. India’s per capita income reached USD 2301.4 in March 2022, compared to USD 1971.6 in March 2021. Japan's per capita income reached USD 33,911.2 in December 2022, compared to USD 39,916.1 in December 2021. Such instances result in the rising spending power of individuals and affording more money for new residential spaces. For households, in 2012, the Chinese government offered a subsidy of CNY 2.2 billion (USD 0.31 billion) for the use LEDs. The Japanese government introduced a consumer rebate program known as the "Eco-Point" program in April 2010. Users may use their Eco-Points to purchase LED lamps at a 2 to 1 Eco-point ratio, which is further expected to surge the demand for LED lighting.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Indoor Lighting

Industrial and Warehouse Segment in Asia Pacific LED Indoor Lighting Market

The Industrial and Warehouse segment dominates the Asia Pacific LED lighting market, commanding approximately 67% market share in 2024. This significant market position is primarily driven by rapid industrialization and the expansion of manufacturing facilities across key economies like China, India, and Southeast Asian nations. The segment's growth is further bolstered by the increasing adoption of smart manufacturing practices and automation, requiring high-quality LED lighting solutions. Major developments in logistics and warehousing infrastructure, particularly in countries like Indonesia, Malaysia, and India, have created substantial demand for energy-efficient LED lighting solutions. The rise of e-commerce and the subsequent expansion of fulfillment centers have also contributed significantly to the segment's dominance.

Agricultural Lighting Segment in Asia Pacific LED Indoor Lighting Market

The Agricultural Lighting segment is emerging as the fastest-growing segment in the indoor LED lighting market between 2024-2029. This growth is primarily driven by the rapid expansion of vertical farming and indoor cultivation facilities across the region. Countries like Singapore, Japan, and China are heavily investing in urban farming technologies, creating significant demand for specialized LED grow lights. The segment is witnessing increased adoption due to rising food security concerns and government initiatives supporting controlled environment agriculture. Technological advancements in LED spectrum optimization for plant growth and the integration of smart farming practices are further accelerating market growth. The trend towards sustainable agriculture and the need to maximize crop yields in limited spaces continue to drive innovation in agricultural LED lighting solutions.

Remaining Segments in Indoor Lighting

The Commercial and Residential segments represent significant portions of the indoor LED lighting market, each offering unique growth opportunities. The Commercial segment, encompassing office spaces, retail establishments, and other commercial facilities, is being driven by smart building initiatives and energy efficiency regulations across major Asian cities. The Residential segment is benefiting from increasing urbanization, rising disposable incomes, and growing awareness of energy-efficient lighting solutions among homeowners. Both segments are seeing increased adoption of smart LED lighting systems that offer features like automated controls and customizable lighting scenarios, reflecting the broader trend toward connected home and building solutions in the Asia Pacific region.

Segment Analysis: Outdoor Lighting

Streets and Roadways Segment in Asia Pacific LED Lighting Market

The Streets and Roadways segment dominates the outdoor LED lighting market in Asia-Pacific, commanding approximately 84% market share in 2024. This significant market position is driven by extensive infrastructure development across the region, particularly the Asian Highway Network, which spans 141,000 km across 32 countries. Major initiatives in countries like Thailand, where the government plans to replace over 400,000 traditional street lights with LED alternatives, demonstrate the segment's robust growth trajectory. The implementation of intelligent traffic management systems and smart city initiatives across metropolitan areas has further catalyzed the adoption of LED street lighting solutions. Additionally, the focus on energy efficiency and sustainability in urban development projects has made LED street lighting a preferred choice for municipal authorities and urban planners across the region.

Public Places Segment in Asia Pacific LED Lighting Market

The Public Places segment is experiencing substantial growth in the Asia-Pacific LED lighting market, with projections indicating a strong expansion trajectory through 2024-2029. This growth is primarily driven by the increasing development of commercial spaces, parks, and recreational facilities across the region. The segment's expansion is particularly notable in emerging economies where rapid urbanization is creating new demands for public infrastructure lighting. The trend is further supported by the recovery of the retail sector, with 72% of retailers expecting increased sales while planning new store openings. The development of new airports, such as Vietnam's USD 14.5 billion greenfield airport project and the USD 13.5 billion New Manila International Airport (NMIA), showcases the significant infrastructure investments driving demand for LED lighting in public spaces.

Remaining Segments in Outdoor Lighting

The Other segment in outdoor LED lighting encompasses specialized applications such as architectural lighting, monument illumination, and decorative outdoor installations. This segment, while smaller in market share, plays a crucial role in enhancing the aesthetic appeal of urban landscapes and creating distinctive nighttime identities for cities across Asia-Pacific. The segment is characterized by innovative lighting solutions that combine functionality with artistic expression, particularly in emerging smart cities and tourism-focused developments. The increasing focus on creating memorable urban experiences through lighting design continues to drive innovation and adoption in this segment, despite its relatively smaller market size.

Segment Analysis: Automotive Utility Lighting

Headlights Segment in Asia Pacific Automotive Utility LED Lighting Market

Headlights have emerged as the dominant and fastest-growing segment in the Asia Pacific automotive utility LED lighting market. The segment accounts for approximately 57% market share in 2024, driven by increasing adoption of advanced LED headlight technologies across vehicle segments. The growth is primarily attributed to the rising production of electric vehicles in the region, with major manufacturers like Hyundai Mobis leading innovations in this space. In May 2023, Hyundai Mobis announced the creation of the HD Lighting System, a new type of headlight that projects clear LED light onto the road ahead and shows real-time driving data. The system utilizes light sources with a thickness of 0.04 mm, incorporating around 25,000 HD microLED pixels, which is approximately 250 times that of mass-produced LED headlamps. The segment's dominance is further strengthened by stringent safety regulations across major markets like China, Japan, and South Korea, mandating the use of high-performance LED headlights in new vehicles.

Remaining Segments in Automotive Utility LED Lighting

The automotive utility LED lighting market encompasses several other crucial segments including directional signal lights, stop lights, tail lights, reverse lights, and daytime running lights (DRL). Directional signal lights play a vital role in vehicle safety and communication, with manufacturers focusing on developing innovative LED solutions that enhance visibility and energy efficiency. Stop lights and tail lights are experiencing increased adoption of LED technology due to their superior brightness and faster response time compared to traditional lighting solutions. Daytime running lights have gained significant traction, particularly in the luxury vehicle segment, where they serve both functional and aesthetic purposes. Reverse lights, while representing a smaller segment, are seeing technological advancements with the integration of smart features and improved illumination capabilities. These segments collectively contribute to the comprehensive LED lighting ecosystem in modern vehicles, with manufacturers continuously innovating to improve safety, efficiency, and design aesthetics.

Segment Analysis: Automotive Vehicle Lighting

Passenger Cars Segment in Automotive Vehicle LED Lighting Market

Passenger cars represent the dominant segment in the Asia-Pacific automotive vehicle LED lighting market, commanding approximately 59% market share in 2024. This significant market position is driven by the robust automotive manufacturing base in countries like China, Japan, and South Korea, where major automakers are increasingly incorporating LED lighting solutions in their vehicle designs. The segment's growth is further propelled by the rising adoption of electric vehicles across the region, with China alone expected to account for around 65% of global EV sales. The integration of advanced LED technologies in passenger vehicles, such as matrix headlights and dynamic lighting systems, is becoming increasingly prevalent. Additionally, the growing consumer preference for vehicles with enhanced safety features and sophisticated lighting systems has contributed to the segment's dominance. The expansion of premium and luxury car segments in emerging markets like India and Southeast Asian countries has also played a crucial role in driving LED adoption in passenger vehicles.

Two-Wheeler Segment in Automotive Vehicle LED Lighting Market

The two-wheeler segment is emerging as the fastest-growing category in the Asia-Pacific automotive vehicle LED lighting market, projected to expand at approximately a 16% growth rate from 2024 to 2029. This remarkable growth is primarily attributed to the increasing adoption of LED lighting solutions in motorcycles and scooters across the region. The segment's expansion is particularly notable in countries like Vietnam, India, and Indonesia, where two-wheelers serve as the primary mode of transportation. The growth is further accelerated by the rapid electrification of two-wheelers, with manufacturers introducing innovative LED lighting designs specifically tailored for electric scooters and motorcycles. Government regulations mandating the use of daytime running lights (DRL) in two-wheelers have also contributed to increased LED adoption. The segment is witnessing significant technological advancements, with manufacturers introducing smart lighting systems and enhanced safety features in premium two-wheeler models.

Remaining Segments in Automotive Vehicle LED Lighting

The commercial vehicles segment represents another significant component of the Asia-Pacific automotive vehicle LED lighting market. This segment encompasses a wide range of vehicles including trucks, buses, and light commercial vehicles, each with specific lighting requirements and regulations. The segment is particularly influenced by the growing logistics and transportation sector across the region, with increased demand for energy-efficient LED lighting solutions in heavy-duty vehicles. Commercial vehicle manufacturers are increasingly focusing on incorporating advanced LED lighting systems to enhance visibility and safety features. The segment is also witnessing innovation in terms of specialized lighting solutions for different commercial vehicle applications, such as delivery vans, construction vehicles, and public transportation. The adoption of LED lighting in this segment is further driven by the need for durable and long-lasting lighting solutions that can withstand demanding operating conditions.

Asia Pacific LED Lighting Market Geography Segment Analysis

LED Lighting Market in China

China dominates the Asia-Pacific LED lighting market, commanding approximately 34% of the total market value in 2024 and exhibiting the fastest growth trajectory with a projected CAGR of around 10% from 2024 to 2029. The country's robust manufacturing sector continues to be a key driver, with major automotive plants like BMW's new factory in Shenyang and Audi's EV facility in Changchun contributing to industrial LED lighting demand. The retail sector demonstrates remarkable resilience, with sales surging 12.7% in May 2023, driving the need for commercial lighting solutions. The construction of new airports, including six cargo airports and 29 multi-purpose airports, is creating substantial demand for outdoor LED lighting. China's commitment to sustainable urban development is evident in its smart city initiatives and energy-efficient lighting programs. The nation's position as a global LED manufacturing hub, coupled with its strong domestic market and technological innovations in areas like automotive LED lighting, continues to strengthen its market leadership.

LED Lighting Market in Japan

Japan's LED lighting market demonstrates sophisticated integration of technology and energy efficiency initiatives. The country's approach to LED adoption is characterized by comprehensive government support and innovative corporate partnerships. The Tokyo Metropolitan Government's energy-saving campaigns and smart city initiatives have been instrumental in driving LED adoption across public spaces. Japan's unique position in the automotive sector, particularly in LED automotive lighting technology, has fostered significant innovations in vehicle lighting systems. The country's focus on quality and technological advancement is evident in its stringent certification processes and standards for LED products. Japanese manufacturers continue to lead in developing advanced LED solutions for various applications, from residential to industrial use. The market is particularly driven by the country's aging infrastructure renovation projects and the increasing demand for smart lighting solutions in commercial spaces. The integration of IoT capabilities in LED lighting systems has opened new opportunities in the Japanese market, especially in smart building applications.

LED Lighting Market in India

India's LED lighting market is experiencing transformative growth driven by extensive government initiatives and rapid urbanization. The country's ambitious infrastructure development plans, including the construction of smart cities and modern industrial corridors, are creating substantial opportunities for LED lighting applications. The manufacturing sector's projected growth to USD 1 trillion by 2030 is driving demand for industrial LED lighting solutions. The commercial real estate sector shows robust growth, with office absorption in the top seven cities reaching 38.25 million sq. ft. in 2022. The automotive sector's evolution, particularly in LED adoption for vehicle lighting, demonstrates the market's technological advancement. India's focus on energy-efficient lighting solutions, supported by various government programs and incentives, continues to accelerate LED adoption across sectors. The country's retail and commercial segments are witnessing increased demand for sophisticated lighting solutions, particularly in shopping malls and modern office spaces.

LED Lighting Market in Other Countries

The Asia LED lighting market in other Asia-Pacific countries exhibits diverse growth patterns influenced by regional economic development and urbanization trends. Countries like Singapore, South Korea, and Thailand are witnessing increased adoption of smart LED lighting solutions in their urban development projects. Indonesia's real estate sector shows resilience and growth, driving demand for residential and commercial LED lighting. Malaysia's strong foreign investment inflow is supporting commercial development and LED adoption. Vietnam's expanding manufacturing sector and new infrastructure projects are creating opportunities for industrial LED lighting solutions. The Philippines' smart city initiatives and infrastructure modernization programs are accelerating LED adoption in public spaces. These markets are characterized by varying levels of technological adoption, government support, and economic development, each contributing uniquely to the region's LED lighting landscape. The focus on energy efficiency and sustainable development across these countries continues to drive innovation and adoption of LED lighting solutions.

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