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

LED Lighting Market Analysis

The LED Lighting Market size is estimated at 48.77 billion USD in 2025, and is expected to reach 65.13 billion USD by 2030, growing at a CAGR of 5.96% during the forecast period (2025-2030).

The LED lighting industry is experiencing significant transformation driven by industrial modernization and commercial infrastructure development. Major manufacturing nations have demonstrated robust industrial growth, with the United States achieving industrial production worth USD 2,497.1 billion in 2021, while the United Kingdom recorded USD 274.87 billion in the same period. This industrial expansion has created substantial demand for modern warehousing and manufacturing facilities requiring advanced LED lighting solutions. The logistics and e-commerce sectors are particularly driving this trend, exemplified by developments such as Yum China Holdings' new Supply Chain Management Center in Shanghai's Jiading district, spanning 61,000 square meters.

Infrastructure modernization initiatives are reshaping the LED lighting landscape across various sectors. Municipal authorities are increasingly investing in smart lighting infrastructure, as demonstrated by Grand Rapids city council's USD 9.46 million contract for upgrading city-wide street lights to LEDs. The construction sector is also witnessing significant activity, with Calgary's housing market recording 17,306 multi-unit project starts in 2022, indicating strong demand for residential lighting solutions. These developments are complemented by large-scale smart infrastructure projects, such as the one initiated in Huanggang City, China, in February 2023, focusing on energy cost reduction through advanced lighting systems.

The commercial real estate sector is undergoing substantial changes in lighting requirements, driven by evolving workplace dynamics and energy efficiency demands. Property developers are increasingly incorporating smart lighting solutions in new constructions and renovations to meet modern workplace requirements. This trend is supported by government initiatives and building regulations promoting energy-efficient lighting systems, with many jurisdictions offering incentives for LED adoption. The retail sector is particularly active in LED implementation, with stores upgrading their lighting systems to enhance customer experience and reduce operational costs.

Technological advancements in LED lighting systems are creating new application possibilities across various sectors. Smart lighting solutions with integrated sensors and controls are becoming increasingly prevalent in commercial and industrial applications. The industry is witnessing a shift toward more sophisticated systems that offer features like automated dimming, color temperature adjustment, and integration with building management systems. These developments are particularly relevant in specialized applications such as horticulture, sports facilities, and architectural lighting, where precise light control and energy efficiency are crucial requirements.

Global LED Lighting Market Trends

Increasing energy-efficient construction and the rise in global sales of EVs are expected to drive the growth of the market

• The world's population reached 7.89 billion people in 2021. Global employment figures reached 3.32 billion in 2022 from 3.16 billion in 2015, an increase of almost 0.13 billion. The use of LEDs is expected to increase as more knowledge is spread throughout the population as a result of the rise in the number of employed individuals.
• Despite the COVID-19 pandemic, worldwide spending on energy-efficient construction increased by an exceptional 11.4% in 2020 to over USD 184 billion, up from USD 165 billion in 2019. The yearly growth rate for investments in energy efficiency surpassed 3% for the first time since 2015. The requirement for additional rooms in a house is anticipated to result in increased demand for LEDs due to the rise in the development of energy-efficient buildings and to meet the residential needs of the expanding population.
• In 2022, there were 143.96 million automobiles produced worldwide. In 2023, that number was projected to rise to 150.92 million. Global sales of electric vehicles exceeded 10 million in 2022, and it was predicted that sales in 2023 would rise by another 35% to a total of 14 million. The market share of electric cars rose from 4% in 2020 to 14% in 2022 as a result of this quick expansion. Due to the fact that electric cars need more processors per vehicle than conventional automobiles, there has also been an increase in the need for automotive semiconductor chips as more of them are used. The rise in semiconductor demand in the automotive industry is likely to help the market for LED lighting.

The market is driven by increasing population, green buildings, and government programs to promote LED adoption

• The world's population reached 8 billion people in 2023, up from 7.79 billion in 2020. The largest countries by population included China (1.45 billion), India (1.42 billion), and the US (336.8 million). Furthermore, global employment increased to 3.32 billion people in 2022 from 3.16 billion in 2015, an increase of almost 0.13 billion people. The use of LEDs will increase as more knowledge is spread throughout the population as a result of the rise in the number of employed individuals and population growth.
• Despite the COVID-19 pandemic, worldwide spending on energy-efficient construction increased by an exceptional 11.4% in 2020 to over USD 184 billion, up from USD 165 billion in 2019. The yearly growth rate for investments in energy efficiency surpassed 3% for the first time since 2015. The requirement for additional rooms in a house will result in increased demand for LEDs due to the rise in the development of energy-efficient buildings and to meet the residential needs of the expanding population.
• Globally, launches of new houses have been rising, creating more LED penetration due to the need for illumination. For instance, in India, new launches in the Mumbai Metropolitan Region (MMR) increased over two-fold to 1,24,652 units in 2022 from 56,883 units in the previous year. Brazil’s affordable housing program also restarted. The Brazilian President announced plans to restart the nationwide federal housing program for low-income individuals in February 2023. The President created the program, named “Minha Casa, Minha Vida,” which translates to “My Home, My Life,” in 2009. Such instances are further expected to raise the demand for LED lighting in the country.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

• The increasing demand for EVs is anticipated to raise the market value
• Global sales of commercial construction exceeding by 59% in 2020, increasing pipeline projects, and increasing demand for EVs are expected to drive the growth of market
• Online financing options through technology and government incentives to promote the use of EVs are expected to drive the market
• The increasing number of battery swapping stations and battery recycling service outlets and the rising demand for EVs are expected to drive the growth of the market
• Increasing car registrations, passenger cars having the highest motor vehicle sales, and technology advancements are expected to drive the growth of the market
• Asia-Pacific is primary exporters of LEDs, along with EVs boom, is expected to drive the market
• Development of smart cities, green buildings, and government initiatives to drive the growth of the market
• The United States' large road network, increasing use of smart traffic management systems, and increasing highway construction projects are expected to drive the growth of LED market
• Government schemes to replace conventional bulbs with LED lights and increasing global sales of electric vehicles are expected to drive the growth of the market
• Upgradation and renovation of sports stadiums and government funding in the sports sector are expected to drive the growth of the market
• Innovation in indoor farming is expected to drive the growth of the market

Segment Analysis: Indoor Lighting

Industrial and Warehouse Segment in LED Indoor Lighting Market

The Industrial and Warehouse segment dominates the LED indoor lighting market, commanding approximately 49% market share in 2024. This significant market position is driven by the rapid expansion of manufacturing facilities and warehouses globally, particularly in the Asia-Pacific region, which accounts for about 60% of the segment's value. The growth is further supported by the increasing adoption of energy-efficient LED lighting for industrial solutions in industrial facilities and the ongoing trend of warehouse automation. Major developments include new manufacturing plants in India, which is expected to reach USD 1 trillion manufacturing capacity by 2030, and significant warehouse expansion in China, where companies like Yum China Holdings are constructing large-scale supply chain centers spanning over 61,000 square meters.

Agricultural Lighting Segment in LED Indoor Lighting Market

The Agricultural Lighting segment is emerging as the fastest-growing segment in the LED indoor lighting market, with an expected growth rate of approximately 9% between 2024 and 2029. This remarkable growth is primarily driven by the increasing adoption of vertical farming systems and controlled environment agriculture. The segment's expansion is particularly notable in Asia-Pacific countries, where innovative technologies are being implemented in greenhouse operations. The growth is further accelerated by developments in the Middle East, where facilities like Bustanika, the world's largest vertical hydroponic farm, are demonstrating the potential of LED lighting in agricultural applications. The segment is also benefiting from technological advancements in LED spectrum optimization for plant growth and the increasing focus on food security across major economies.

Remaining Segments in Indoor Lighting

The Commercial and Residential segments continue to play vital roles in shaping the indoor LED lighting market landscape. The commercial lighting market, encompassing offices, retail spaces, and other commercial establishments, is experiencing transformation driven by the shift to hybrid work models and the emphasis on energy-efficient building solutions. The Residential segment is benefiting from increasing awareness of energy conservation and smart home integration capabilities of LED lighting systems. Both segments are seeing increased adoption of smart lighting solutions and connected technologies, while government initiatives promoting energy-efficient lighting solutions continue to drive market growth across these segments.

Segment Analysis: Outdoor Lighting

Public Places Segment in Outdoor LED Lighting Market

The public places segment dominates the outdoor LED lighting market, commanding approximately 60% market share in 2024. This significant market position is driven by the increasing development of amusement parks, parking spaces, and other public infrastructure across major economies. Recent trends toward urbanization and increasing population density have significantly boosted the importance of structured parking facilities, especially in markets without viable alternative light rail and mass transit systems. The segment's growth is further supported by the emergence of "gated communities" with enhanced security features requiring sophisticated lighting solutions, including 24-hour video surveillance systems and perimeter security lighting.

Streets and Roadways Segment in Outdoor LED Lighting Market

The streets and roadways segment is experiencing robust growth in the outdoor LED lighting market, driven by extensive infrastructure development and smart city initiatives worldwide. Major government investments in road infrastructure and street lighting modernization projects are propelling segment expansion. For instance, the US Department of Transportation's Infrastructure Investment and Jobs Act is providing substantial funding for highway system improvements through 2026. Additionally, various projects across the Asia-Pacific region are focused on replacing traditional road and traffic lights with LED lighting, while implementing intelligent traffic management systems to address growing traffic challenges. European nations are also leveraging energy and lighting cost-saving techniques through the implementation of smart street lighting initiatives.

Remaining Segments in Outdoor Lighting

The other segments in the outdoor LED lighting market encompass specialized applications such as the architectural lighting market for castles, fortresses, and stadiums. These segments play a crucial role in enhancing the aesthetic appeal and functionality of historical structures and modern sports facilities. The growing focus on energy efficiency and architectural preservation is driving the adoption of LED lighting solutions in these applications. Additionally, the integration of dynamic lighting control systems and color-changing capabilities is creating new opportunities for innovative lighting designs in these specialized segments.

Segment Analysis: Automotive Utility Lighting

Headlights Segment in Automotive Utility Lighting Market

Headlights continue to dominate the automotive utility lighting market, commanding approximately 51% of the total market value in 2024. This significant market position is driven by increasing adoption of advanced LED headlight technologies across vehicle segments, particularly in electric vehicles. The segment's growth is further supported by stringent safety regulations requiring adequate road illumination and prevention of glare from oncoming vehicles. For instance, in the United States, federal guidelines specifically mandate that LED headlights cannot exceed 3,000 lumens brightness. Major automotive manufacturers are increasingly incorporating innovative LED headlight technologies, such as Hyundai Mobis's development of the HD Lighting System in 2023, which projects clear LED light onto the road ahead showing real-time driving data. The technology utilizes light sources with a thickness of 0.04 mm, incorporating around 25,000 HD MicroLED pixels, demonstrating the advancing sophistication in automotive headlight solutions.

Directional Signal Lights Segment in Automotive Utility Lighting Market

The directional signal lights segment is emerging as the fastest-growing category in the automotive utility lighting market, projected to grow at approximately 8% annually through 2024-2029. This growth is primarily driven by increasing safety regulations and the integration of advanced LED technologies in signal lighting systems. The segment is witnessing significant technological advancements, particularly in the development of smart directional indicators that enhance visibility and safety. The expansion is further supported by the rising production of electric vehicles globally, with manufacturers incorporating sophisticated LED signal lighting systems as standard features. For instance, HELLA's introduction of new LED signal lighting technologies and the development of integrated lighting solutions demonstrates the industry's focus on innovation in this segment. The growth is also bolstered by increasing consumer preference for vehicles with advanced safety features and the automotive industry's shift towards more energy-efficient lighting solutions.

Remaining Segments in Automotive Utility Lighting

The automotive utility lighting market encompasses several other crucial segments including Daytime Running Lights (DRL), Reverse Lights, Stop Lights, Tail Lights, and other specialized lighting applications. DRLs have gained significant importance in vehicle safety systems, becoming mandatory in many regions and contributing to accident prevention. Reverse lights and stop lights play critical roles in vehicle safety during parking and braking operations, while tail lights serve as essential visibility components during nighttime driving. The remaining specialized lighting applications cater to specific automotive needs such as fog lights, hazard lights, and interior lighting systems. These segments collectively contribute to the comprehensive lighting ecosystem in modern vehicles, with each component serving specific safety and functionality requirements while adhering to regional regulatory standards and evolving with technological advancements in LED lighting solutions.

Segment Analysis: Automotive Vehicle Lighting

Passenger Cars Segment in Automotive Vehicle LED Lighting Market

Passenger cars continue to dominate the automotive vehicle LED lighting market, commanding approximately 72% market share in 2024. This significant market position is driven by increasing adoption of advanced LED lighting technologies across new passenger vehicle models, particularly in premium and electric vehicle segments. The growing emphasis on energy efficiency and enhanced safety features has led automotive manufacturers to incorporate sophisticated LED lighting systems as standard equipment in passenger vehicles. Additionally, stringent regulations regarding vehicle lighting and safety standards in major automotive markets have pushed manufacturers to upgrade their lighting systems to LED technology. The expansion of electric vehicle production globally has further accelerated this trend, as EVs typically feature advanced LED lighting systems as part of their modern design aesthetic and energy-efficient architecture.

Two-Wheelers Segment in Automotive Vehicle LED Lighting Market

The two-wheelers segment is emerging as the fastest-growing category in the automotive vehicle LED lighting market between 2024 and 2029. This rapid growth is primarily attributed to the increasing adoption of LED lighting systems in motorcycles and scooters, particularly in emerging markets. The segment's expansion is further fueled by the rising popularity of premium two-wheelers and electric motorcycles, which typically incorporate advanced LED lighting systems. Manufacturers are increasingly focusing on developing innovative LED lighting solutions specifically designed for two-wheelers, including adaptive headlights and integrated daytime running lights. The growing emphasis on safety features and aesthetic appeal in the two-wheeler segment has led to increased integration of LED lighting systems across different price points and vehicle categories.

Remaining Segments in Automotive Vehicle LED Lighting

The commercial vehicles segment represents another significant portion of the 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 applications. Commercial vehicle manufacturers are increasingly adopting LED lighting solutions to enhance visibility, improve safety features, and reduce maintenance costs. The segment is particularly influenced by fleet operators' growing preference for energy-efficient lighting solutions that offer longer operational life and better durability. The adoption of LED lighting in commercial vehicles is also driven by the increasing electrification of commercial fleets and the implementation of advanced driver assistance systems that require sophisticated lighting solutions.

LED Lighting Market Geography Segment Analysis

LED Lighting Market in China

China dominates the global LED lighting market, accounting for approximately 40% of the global market share in 2024. The country's leadership in LED technology is driven by its robust manufacturing ecosystem and comprehensive government support for energy-efficient lighting solutions. The nation's commitment to sustainable urban development is evident in its large-scale smart infrastructure projects, such as the one initiated in Huanggang City focused on energy cost reduction and urban infrastructure digitalization. China's LED market is further strengthened by its position as a major exporter of LED components and finished products, with many global manufacturers sourcing their LED packages from Chinese suppliers. The country's rapid urbanization, coupled with its ambitious green energy targets, continues to drive domestic demand for LED lighting solutions across residential, commercial, and industrial sectors. The market is particularly boosted by China's aggressive electric vehicle adoption strategy, which has created significant demand for automotive LED lighting components. The China LED market is expected to continue its growth trajectory, reinforcing its dominance in the global LED lighting market.

LED Lighting Market in India

India's LED lighting market is experiencing a remarkable transformation, projected to grow at approximately 11% annually from 2024 to 2029. The country's trajectory toward becoming a manufacturing hub by 2030 is reshaping its LED lighting landscape, with ambitious plans to increase manufacturing capacity to USD 1 trillion. The government's aggressive push for energy efficiency through programs like UJALA and SLNP has created a robust ecosystem for LED adoption. The nation's smart city initiatives and infrastructure modernization projects are driving significant demand for LED lighting solutions across urban centers. India's commercial and industrial sectors are witnessing rapid expansion, with total warehousing capacity showing substantial growth. The country's focus on indigenous manufacturing, coupled with favorable policies and incentives for LED production, is attracting significant investments in local manufacturing facilities. The residential sector is also experiencing strong growth, driven by increasing awareness of energy efficiency and government subsidies for LED adoption.

LED Lighting Market in United States

The United States continues to be a pivotal market for LED lighting innovations, particularly in smart lighting solutions and connected technologies. The nation's commitment to energy efficiency is evident through various state and federal initiatives promoting LED adoption. The commercial real estate sector's transformation, particularly in Class A office spaces, is driving demand for sophisticated LED lighting solutions. The country's infrastructure modernization efforts, including the comprehensive upgrade of street lighting systems in major cities, demonstrate the growing preference for LED technology. The automotive sector's shift toward electric vehicles has created new opportunities for advanced LED lighting applications. The nation's focus on sustainable building practices and green infrastructure development has made LED lighting a crucial component of new construction projects. The market is further strengthened by innovative financing models and energy performance contracting, making LED adoption more accessible across various sectors.

LED Lighting Market in Germany

Germany stands at the forefront of European LED lighting innovation, driven by stringent energy efficiency regulations and substantial investments in sustainable technologies. The country's automotive industry, with its EUR 49.54 billion investment in innovative projects, has become a major driver for LED lighting advancements. The nation's ambitious goal of having 6 million electric vehicles on German roads by 2030 is creating significant opportunities for automotive LED lighting solutions. The commercial sector's transformation, particularly in office spaces with vacancy rates below 85%, continues to drive demand for energy-efficient lighting solutions. Germany's commitment to environmental sustainability is reflected in its comprehensive approach to LED adoption across public infrastructure, including the modernization of street lighting systems. The country's strong focus on research and development in lighting technology has established it as a hub for innovative LED solutions.

LED Lighting Market in Other Countries

The LED lighting market shows diverse growth patterns across other significant countries, each driven by unique market dynamics and regulatory frameworks. Japan's market is characterized by its advanced technological innovations and strict quality standards, while France demonstrates a strong commitment to energy efficiency through comprehensive lighting regulations. The United Kingdom's market is shaped by its ambitious carbon reduction goals and innovative financing schemes for LED adoption. Countries in the Middle East, particularly the UAE and Saudi Arabia, are showing increased adoption of LED lighting through smart city initiatives and sustainable development projects. South Korea's market is distinguished by its strong automotive LED segment, while emerging markets like Brazil and Mexico are experiencing growth driven by infrastructure development and energy efficiency initiatives. The LED lighting market in Brazil is particularly notable for its rapid adoption in urban centers. Each of these markets contributes uniquely to the global LED lighting landscape, influenced by their respective regulatory environments, economic conditions, and sustainability goals. Additionally, the Vietnam LED lighting market and East Africa LED lighting market are emerging as significant players, driven by increasing urbanization and government initiatives for sustainable development.