Global Commercial and Industrial LED Lighting Market Size

Commercial & Industrial LED Lighting Market Analysis

The Global Commercial and Industrial LED Lighting Market is expected to witness a CAGR of 16.4% during the forecast period (2022-2027). Governments in both developed and developing countries are working to reduce high energy consumption by enacting various quality laws that assist them in maintaining customer safety, reducing energy consumption, and keeping track of environmental challenges. LED lights are energy-efficient solutions that provide 50,000 hours of illumination while using less electricity. As a result, rigorous government restrictions governing the usage of high-energy-consuming lighting are expected to boost market growth.

• The market studied is driven by many factors, such as improved manufacturing efficiency, improved LED efficacy in recent years, and suitable design of LED lamps and retrofit kits, which can directly replace the existing halogen, incandescent, and fluorescent lamps.
• For Instance, In April 2022, All streetlights in Navi Mumbai will be replaced with LED lights, according to the Navi Mumbai Municipal Corporation (NMMC). It plans to replace 35,000 streetlights this year, saving INR 7 million annually. LED lighting will be installed on all city roads, including highways. While some were replaced in 2021, most will be replaced in the fiscal year 2022. The work's tendering process has commenced. The LED fittings will be installed on the Sion-Panvel highway, frequently in the dark, as it has been handed over to NMMC for maintenance by PWD.
• Further, LED prices decreased in the last few years, driven by manufacturing efficiency and economies of scale. Competition among manufacturers is also making standard LED products more affordable. Further technological innovation presents customers with a broader choice of prices and products.
• However, during the initial period of the COVID-19 pandemic, market players reported substantial impacts on their supply chain, including supply shortages and delays, decreased sales and demand, and inventory surpluses and shortages. Manufacturers reported localized supply disruptions and reduced demand for commercial retrofit projects. In contrast, residential and outdoor lighting market demand remained stable.
• LED lighting network requires a whole new infrastructure by users to enable this technology as LED employs a different standard than conventional lamps and necessitates complete replacement. Additionally, there is an imbalance between demand and supply; i.e., the supply does not meet the need for LED lights. Also, the number of manufacturers in this industry is lesser than the other lighting technologies. Hence, most of them cannot provide LEDs at competitive prices. Due to expensive raw materials, relatively new LED technology, and high demand, some components increased the cost of LED fixtures. Such factors may restrain the growth of the studied market.