United Kingdom Indoor LED Lighting Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 2.76 Billion |
| Market Size (2030) | USD 3.59 Billion |
| Growth Rate (2025 - 2030) | 5.42% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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United Kingdom Indoor LED Lighting Market Analysis by Mordor Intelligence
The United Kingdom indoor LED lighting market size is estimated at USD 2.76 billion in 2025 and is projected to reach USD 3.59 billion by 2030, representing a 5.42% CAGR during the forecast period. Robust retrofit demand, tighter building codes, and falling diode prices are the primary forces propelling the United Kingdom indoor LED lighting market toward steady expansion. Corporate net-zero pledges fuel large-scale relighting programs, while wholesale channel dominance preserves pricing power even as e-commerce gains traction. Manufacturers deepen smart-lighting integration to capture value beyond lumens, and public-sector frameworks worth GBP 15.4 billion (USD 20.72 billion) offer stable revenue streams for qualified suppliers.
Key Report Takeaways
- By product type, luminaires and fixtures led with 60.86% of the United Kingdom indoor LED lighting market share in 2024.
- By application, the residential segment advanced at the fastest 8.65% CAGR, while retaining 39.87% revenue share of the United Kingdom indoor LED lighting market size in 2024.
- By installation, retrofit projects captured 75.32% share of the United Kingdom indoor LED lighting market size in 2024 and will continue to outpace new-build deployments through 2030.
- By distribution, wholesale and retail channels held 53.21% revenue share in 2024; e-commerce is projected to expand at a 6.12% CAGR through 2030.
United Kingdom Indoor LED Lighting Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rapid phase-out of halogen and fluorescent lamps | +1.8% | UK national | Short term (≤ 2 years) |
| Government energy-efficiency incentives and building codes | +1.2% | UK national | Medium term (2-4 years) |
| Declining LED unit prices | +0.9% | UK national | Long term (≥ 4 years) |
| Corporate net-zero/ESG lighting retrofits | +1.1% | London, Manchester, Birmingham | Medium term (2-4 years) |
| Smart-lighting integration with the UK smart-meter roll-out | +0.7% | UK national | Long term (≥ 4 years) |
| Expansion of urban vertical-farming facilities | +0.3% | Urban centers | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Rapid Phase-out of Halogen and Fluorescent Lamps
The removal of fluorescent tubes from the United Kingdom market in September 2023 triggered a wave of mandatory replacements that lifted the United Kingdom indoor LED lighting market during 2024 and 2025.[1]GOV.UK, “Restriction of Hazardous Substances (RoHS) Regulations: Guidance Notes,” gov.uk Office owners accelerated relighting projects to avoid stock shortages, while hospitals, such as the Ulster Hospital in Belfast, replaced legacy luminaires to comply with clinical-grade illumination needs. As remaining fluorescent fittings reach the end of their life, sustained retrofit activity will continue through 2026.
Government Energy-Efficiency Incentives and Building Codes
Stricter Part L benchmarks and the 2025 Future Homes Standard enshrine LED as the default technology for new dwellings and major refurbishments. Grants under the Public Sector Decarbonisation Scheme and social-value weighting in public tenders cut payback periods and steer orders toward high-performance LED solutions.
Declining LED Unit Prices
Scale economies and efficacy gains reduce component cost per lumen, helping lamp-based retrofits penetrate price-sensitive residential and SME segments. Nonetheless, supply-chain shocks periodically reverse the trend, as evidenced by Dialight’s USD 7.8 million dispute settlement tied to chip shortages.
Corporate Net-Zero/ESG Lighting Retrofits
Brands such as Element Materials Technology upgraded 65 sites during 2024, achieving 40% electricity savings while meeting science-based targets. Portfolio landlords adopt LEDs to enhance EPC ratings, reduce energy bills, and preserve rental yields.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High up-front capex for large-scale retrofits | -0.8% | UK national | Short term (≤ 2 years) |
| Supply-chain volatility in semiconductor chips | -0.5% | UK national | Medium term (2-4 years) |
| “Dark-skies” regulations constraining lumen output | -0.2% | Rural UK | Long term (≥ 4 years) |
| Surplus stock from office-occupancy decline post-COVID | -0.3% | London commercial districts | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
High Up-Front Capex for Large-Scale Retrofits
SMEs often delay upgrades when budgets are tight, despite payback periods averaging three years. Enforcement gaps in Minimum Energy Efficiency Standards allow some landlords to defer compliance for lower-grade properties.
“Dark-Skies” Regulations Constraining Lumen Output
Designated protected areas limit exterior brightness, compelling bespoke low-glare luminaires that increase per-unit cost and reduce volume potential.[2]Upper Nidderdale AONB, “Dark Skies,” uppernidderdale.org.uk
Segment Analysis
By Product Type: Luminaires Drive Market Sophistication
The luminaires category accounted for 60.86% of the United Kingdom's indoor LED lighting market in 2024, underscoring the end-user's appetite for complete, optics-optimized solutions that incorporate connectivity and sensors. This share corresponds to approximately USD 1.65 billion of the United Kingdom's indoor LED lighting market size in 2024. In offices, integrated fixtures accelerate return on investment by bundling daylight harvesting and occupancy control in a single SKU. The lamps segment, while smaller, is poised to grow at 7.56% through 2030 thanks to quick-fit retrofits that extend the life of existing troffers and downlights. Healthcare professionals favor high-fidelity LED lamps that meet LG02 R9 color-rendering criteria, sustaining niche demand for premium T8 and GU10 form factors.[3]CIBSE, “LG02 Lighting for Healthcare Premises,” cibse.org
Across commercial portfolios, Signify’s Interact-ready downlights illustrate how vendors layer software-as-a-service revenue onto hardware sales. Conversely, basic A60 bulbs dominate consumer purchases, supported by supermarket promotions and online marketplace bundles. Falling diode prices will continue to erode upfront premiums, yet demand for tunable-white and circadian-support products will keep high-end ASPs resilient.
By Application: Residential Segment Leads Growth Acceleration
Residential premises held 39.87% of the United Kingdom indoor LED lighting market share in 2024 and will post the fastest 8.65% CAGR to 2030. Energy-labeling rules and the Future Homes Standard have solidified LED as the baseline in new-build housing, while DIY upgrades flourish through multi-buy e-commerce deals. The lighting revamp of more than 500 Morrisons stores also signals proximity retail’s continuing appetite for advanced luminaires that lower electric bills and enhance color merchandising.
Offices remain lucrative for connected-lighting suppliers that promise productivity gains and ESG reporting metrics. Although hybrid working reduces aggregate footfall, landlords refurbish prime spaces to preserve yields, resulting in stable retrofit demand. The healthcare and education segments sustain orders for high-CRI and glare-controlled solutions, while industrial plants adopt ruggedized fixtures to minimize maintenance downtime.
By Installation Type: Retrofit Dominance Signals Market Maturity
Retrofits controlled a commanding 75.32% of the United Kingdom indoor LED lighting market in 2024, mirroring the vast legacy stock of fluorescent troffers ripe for replacement. The retrofit share equated to roughly USD 2.1 billion of the United Kingdom indoor LED lighting market size and will remain above 70% throughout the forecast. Facility managers prize drop-in kits that minimize disruption, and government grants further tilt ROI in favor of energy-savings upgrades.
New installations will nonetheless increase at a rate of 6.45% annually, tied to a rebound in commercial completions and the adoption of pre-integrated smart lighting packages. New-build projects allow full-suite sensor grids and PoE architectures that are costly to retrofit. This structural divide will expand the premium tier, reinforcing vendor focus on integrated control ecosystems.
By Distribution Channel: E-commerce Disrupts Traditional Wholesale Patterns
Wholesale networks retained 53.21% revenue share in 2024, sustained by contractor loyalty and credit facilities that simplify multi-site rollouts. Branch stocks provide immediate availability for urgent retrofit jobs, preserving the channel’s primacy in the United Kingdom indoor LED lighting market. Yet digital marketplaces now serve specifiers with configurable datasheets, live inventory, and same-day shipping, driving a 6.12% CAGR rise in online sales.
Direct accounts with corporates and public bodies remain critical for securing large framework contracts, while omnichannel strategies enable wholesalers to defend their share by launching click-and-collect portals. Over time, low-complexity SKUs will continue to migrate online, but project-driven sales will favor distributors who can bundle lighting with wiring accessories and provide on-site support.
Geography Analysis
London’s commercial core delivers the single largest concentration of revenue within the United Kingdom indoor LED lighting market, reflecting dense Grade-A office space and sizeable public-sector estates. High-profile retrofits, such as The Crown Estate’s portfolio upgrade, drive visibility and set performance benchmarks for private landlords.[4]The Crown Estate, “The Crown Estate Completes Major LED Lighting Upgrade,” thecrownestate.co.uk Greater Manchester and Birmingham follow, buoyed by corporate campuses and ongoing regeneration projects that embed LED from the outset.
Scotland exhibits above-average growth as the Scottish National Innovation Strategy channels investment into university labs and NHS facilities, aiming for emission reductions. Edinburgh and Glasgow councils tender smart-street-lighting pilots that include indoor-parking components, broadening vendor pipelines.
Wales leverages public-sector decarbonization grants to retrofit schools and administrative buildings, while Northern Ireland allocates capital to modernize healthcare and tertiary education estates. Rural districts observe slower progress, although community centers capitalize on utility-funded schemes to cut electricity costs.
Competitive Landscape
Competition is moderate, with the top five suppliers controlling approximately 55% of the United Kingdom indoor LED lighting market. Signify emphasizes interoperable platforms, marketing Interact as an asset-optimization tool rather than a simple lighting control. Thorn Lighting and Zumtobel exploit heritage in United Kingdom specification markets, supplying transport hubs and municipal buildings that prioritize compliance and lifetime support. Luceco differentiates itself through Bluetooth-enabled panels that require no wiring for controls, whereas Asian entrants like Opple aggressively push into e-commerce with value-priced SKUs.
Strategic actions in 2024-2025 reveal a sustained pursuit of vertical expertise. Dialight enlarged its ProSite line to capture hazardous-area opportunities, while Whitecroft targeted education lighting niches aligned with Part L glare metrics. Vendors integrate predictive maintenance to secure recurring software fees, and partnerships with prop-tech firms are expanding data monetization channels.
Component sourcing remains a competitive lever; firms with diversified semiconductor partners are better equipped to withstand shocks and can secure pricing for multi-year public contracts. Local assembly offers a hedge against customs delays and supports prompt after-sales servicing—a noted differentiator in healthcare and mission-critical sites.
United Kingdom Indoor LED Lighting Industry Leaders
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Signify N.V.
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Zumtobel Group AG
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Eaton Corporation plc
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Luceco plc
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Dialight plc
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- January 2025: OLAM announced selection by multiple leading UK clinics for high-performance healthcare lighting solutions, strengthening its presence in clinical environments.
- December 2024: Dialight expanded its ProSite platform with a streetlight model for hazardous and non-hazardous applications.
- September 2024: Dialight won a USD 7.8 million jury verdict in a supply chain dispute, highlighting the ongoing semiconductor shortages.
- June 2024: Luceco introduced the LuxPanel Connect, Europe’s first Bluetooth NLC panel
United Kingdom Indoor LED Lighting Market Report Scope
Agricultural Lighting, Commercial, Industrial and Warehouse, Residential are covered as segments by Indoor Lighting.| Lamps |
| Luminaires/ Fixtures |
| Residential |
| Commercial Offices |
| Retail Stores |
| Hospitality |
| Industrial Facilities |
| Healthcare and Education |
| Other Applications |
| New Installation |
| Retrofit Installation |
| Direct Sales |
| Wholesale Retail |
| E-commerce |
| By Product Type | Lamps |
| Luminaires/ Fixtures | |
| By Application | Residential |
| Commercial Offices | |
| Retail Stores | |
| Hospitality | |
| Industrial Facilities | |
| Healthcare and Education | |
| Other Applications | |
| By Installation Type | New Installation |
| Retrofit Installation | |
| By Distribution Channel | Direct Sales |
| Wholesale Retail | |
| E-commerce |
Market Definition
- INDOOR LIGHTING - It incorporates all LED based lamps and fixtures/luminaire that are used to illuminate indoor section of residential, commercial, industrial buildings and agricultural lighting. LED offers efficient brightness with higher durability in comparison to other lighting technology.
- OUTDOOR LIGHTING - It incorporates the LED lighting fixtures that is used for illumination for exterior/outdoor illumination. For instance, LED lighting fixtures used to illuminate streets and highways, transport hubs, stadiums and other public places such as parking spaces.
- AUTOMOTIVE LIGHTING - It refers to the lighting fixtures installed for illumination and signaling purposes. It is used in both exterior and interior lighting of the vehicle. Headlamps, fog lamp, daytime running light (DRLs) are examples of exterior light whereas cabin light are interior lights.
- END USER - It refers to the end use application area where the LED fixture will be installed. For instance, in terms of indoor lighting, we have residential, commercial and industrial as end user category. For automotive lighting, primary end user considered are automotive manufacturers and aftermarket sale
| Keyword | Definition |
|---|---|
| Lumen | Lumen is a unit of luminous flux in the International System of Units that is equal to the amount of light given out through a solid angle by a source of one-candela intensity radiating equally in all directions. |
| Footcandle | A foot-candle (or foot-candle, fc, lm/ft2, or ft-c) is a measurement of light intensity. One foot-candle is defined as enough light to saturate a one-foot square with one lumen of light. |
| Colour Rendering Index (CRI) | Color Rendering Index (CRI) is a measurement of how natural colors render under an artificial white light source when compared with sunlight. The index is measured from 0-100, with a perfect 100 indicating that colors of objects under the light source appear the same as they would under natural sunlight. |
| Luminous flux | Luminous flux is a measure of the power of visible light produced by a light source or light fitting. It is measured in lumens (lm). |
| Annual Energy Cost | Annual Energy Cost means the average daily energy consumption multiplied by 365 (days per year), expressed in kilowatt hour per year (kWh/a). |
| Constant voltage drivers | Constant voltage drivers are designed for a single direct current (DC) output voltage. Most common constant voltage drivers (or Power Supplies) are 12VDC or 24VDC. An LED light that is rated for constant voltage usually specifies the amount of input voltage it needs to operate correctly. |
| Constant Current Driver | Constant current LED drivers are designed for a designated range of output voltages and a fixed output current (mA). LEDs that are rated to operate on a constant current driver require a designated supply of current usually specified in milliamps (mA) or amps (A). These drivers vary the voltage along an electronic circuit which allows current to remain constant throughout the LED system. |
| Minimum Energy Performance Standards (MEPS) | Minimum Energy Performance Standards specify the minimum level of energy performance that appliances and equipment must meet or exceed before they can supply or used for commercial purposes. |
| Luminous Efficacy | Luminous efficacy is a measurement commonly used in the lighting industry that indicates the ability of a light source to emit visible light using a given amount of power. |
| Solid State Lighting | Solid-state lighting (SSL) is a type of lighting that uses semiconductor light-emitting diodes (LEDs), organic light-emitting diodes (OLED), or polymer light-emitting diodes (PLED) as sources of illumination rather than electrical filaments, plasma (used in arc lamps such as fluorescent lamps), or gas. |
| Rated Lamp Life | Lamp life, also referred to as rated life, is the time in hours a lamp will last before a percentage of lamps will burn out. |
| Color Temperature | Colour temperature is a scale that measures how ‘warm’ (yellow) or ‘cool’ (blue) the light from a particular source is. It is measured in degrees of the Kelvin scale (abbreviated to K), and the higher the number, the ‘cooler’ the light. The lower the ‘K’ number, the ‘warmer’ the light. |
| Ingress Protection rating (IP rating) | The IP (Ingress Protection) rating of a bulb or light fixture declares the level of protection it has against dirt and water. |
| Fidelity Index | The general colour fidelity index, Rf, represents how closely the colour appearances of the entire sample set are reproduced (rendered) on average by a test light as compared to those under a reference illuminant. |
| Gamut Index | The gamut area is defined as “the area enclosed by a set of test color samples illuminated by a light source, in a two-dimensional chromaticity diagram or a plane of color space.”1 Within a defined color space, a “gamut” describes the subset of colors that can be perceived under specific lighting conditions. |
| Binning | In the lighting industry, the act of "binning" of LEDs is the process of sorting LEDs by certain characteristics, such as color, voltage, and brightness. |
| Accent lighting | Accent lighting, also called highlighting, emphasizes objects by focusing light directly on them. Accent lighting is used inside and outside the home to feature locations such as an entrance or to create dramatic effects. |
| Dimmable driver | A dimming driver has two functions: As a driver, it converts the 230V AC mains input to a low voltage DC output. As a dimmer, it reduces the amount of electrical energy flowing to the LEDs, thereby causing them to dim. |
| Flicker | Flicker is the repeated and frequent variation in the output of a light source over time. |
| Fluorescent | A property of materials defined as the ability to emit light after absorbing electromagnetic radiation such as visible or UV light. |
| Candela | The candela is the unit of luminous intensity in the International System of Units. It measures the light output per unit solid angle emitted from a light source in a specific direction. |
| LUX | Lux is used to measure the amount of light output in a given area - one lux is equal to one lumen per square meter. It enables us to measure the total "amount" of visible light present and the intensity of the illumination on a surface. |
| Uniformity (U0) | The uniformity of lighting has significant effects on visual performance in both indoor and outdoor areas. Uniformity (represented as U0) value can be found by dividing the minimum brightness (Emin) resulting from calculations according to the current lighting order, to the average brightness value (Eavg). |
| Visible Light Spectrum | The visible light spectrum is the segment of the electromagnetic spectrum that the human eye can view. More simply, this range of wavelengths is called visible light. Typically, the human eye can detect wavelengths from 380 to 700 nanometers. |
| Ambient Temperature | Ambient Temperature is the temperature of the air surrounding an electrical enclosure. |
| Current-controlled dimming control | Current-controlled dimming controls LED brightness by varying the applied current using a 0-10V dimmer. Current-controlled dimming is smooth and HD-video friendly. It can only dim to a minimum of 5% of light output. |
| Design Light Consortium | It is a partnership of energy efficiency stakeholders in the United States and Canada to “promote quality, performance and energy efficient lighting solutions for the commercial sector”. |
| Pulse Width Modulation | Pulse-width modulation, or pulse-duration modulation, is a method of controlling the average power delivered by an electrical signal. |
| Surface Mounted Device | A surface mount device (SMD) is an electronic device whose components are mounted or placed directly on the surface of a printed circuit board. |
| Alternating Current | Alternating current is an electric current which periodically reverses direction and changes its magnitude continuously with time, in contrast to direct current, which flows only in one direction. |
| Direct Current | Direct current (DC) is an electric current that is uni-directional, so the flow of charge is always in the same direction. |
| Beam Angle | Beam angle (also called beam spread) is a measure of how light is distributed. On any plane perpendicular to the centerline of the light, the beam angle is the angle between two rays where the light intensity is 50% of the maximum light intensity. |
| LED Based Solar High Mast Lighting Systems | A Solar LED High Mast Light is a raised source of High illumination lights (6~8 lights) and with high intensity on the middle of major junctions (Ring roads, Outer Ring roads), turned on or lit automatically in the absence of light (at specified timings or at periodic times, every night). |
| Surface Mounted Diode (SMD) LEDs | A surface mount diode is a type that emits light and is flat mounted and soldered onto a circuit board. |
| Chip on Board (COB) LEDs | A COB LED is basically multiple LED chips (usually 9 or more) glued directly onto a substrate by the manufacturer to form a single module. |
| Dual In-Line Package (DIP) LEDs | A dual in-line package (DIP or DIL) is an electronic component package with a rectangular case and two parallel rows of electrical connector pins. |
| Graphene LED Lights | A graphene LED light bulb is simply an LED light bulb where the filament has been coated in graphene. A graphene LED bulb is reported to be 10% more efficient than regular LED light bulbs and they are cheaper to manufacture and buy. |
| LED Corn Bulbs | LED Corn lights are designed as an energy efficient alternative to high intensity discharge (HID) and SON lamps. It uses a large number of LEDs on a metal structure to provide sufficient light. This arrangement of LEDs looks a lot like a corn cob, hence the name "corn light". |
| Per Capita Income | Per capita income or total income measures the average income earned per person in a given area in a specified year. It is calculated by dividing the area's total income by its total population. Per capita income is national income divided by population size. |
| Charging Stations | A charging station, also known as a charging station or electric vehicle utility, is a power supply that provides electrical energy for charging plug-in electric vehicles. |
| Headlight | A headlight is a light that is mounted on the front of a car and illuminates the road in front of it. Low beam and high beam LED headlights are additional categories for these LED headlights. |
| Day Time Running Light (DRLs) | A daytime running lamp is a white, yellow, or amber lighting device mounted on the front of a road-going motor vehicle or bicycle. |
| Directional Signal Light | Directional signal lights are the front and rear lights on an automobile that flash to show the direction of a turn. |
| Stop Light | A red light that is mounted to the back of a car and turns on when the brakes are used to show that the car is stopped. |
| Reverse Light | The reverse light is at the back of the vehicle to indicate its backward motion. |
| Tail Light | A red light that can be seen in the dark is mounted on the rear of a road vehicle. Stop, reverse, and directional signal lights are all part of it. |
| Fog Light | Bright lights in automobiles used to increase visibility on the road in foggy conditions or to warn other drivers of the presence of the vehicle. |
| Passenger Vehicle | A passenger vehicle is a road vehicle, other than a moped or a motorcycle, intended for the transportation of people and designed for up to 8 to 9 seats. |
| Commercial Vehicle | A commercial vehicle (Bus, Truck, Van) is any type of motor vehicle used to transport goods or pay passengers. |
| Two Wheelers (2W) | A two-wheeler is a vehicle that runs on two wheels. |
| Streets & Roadways | Both roads and streets refer to hard, flat surfaces on the ground on which vehicles, people, and animals can travel. Since streetways are usually in cities and towns, they often have houses and buildings on both sides. The roadway is in the countryside and sometimes passes through forests and fields |
| Horticulture Lighting | Horticulture is the science and art of sustainably growing, producing, marketing and using high quality, intensively cultivated food and ornamental plants. |
Research Methodology
Mordor Intelligence has followed the following methodology in all our data center reports.
- Step 1: Raw Data Collection: To understand the market, initially, all crtical data points were identified. Critical information about countries and regions of interest including Per-capita Income, Population, Automotive Production, Interest rate on Auto-Loans, Number of Automobiles on Road, Total LED Import, Lighting Electricity Consumption among others were recorded or estimated based on internal calculations.
- Step 2: Identify Key Variables: To build a robust forecasting model, key variables such as Number of Households, Automotive Production, Road Networks among others were identified. Through an iterative process, the variables required for the market forecast were set, and the model was built using these variables.
- Step 3: Build a Market Model: Based on data and critical industry trend data (variables), including LED pricing, LED penetration rate, and project macro and micor economic factors were utilized for building the market forecasting.
- Step 4: Validate and Finalize: In this crucial step, all market numbers and variables derived through an internal mathematical model were validated through an extensive network of primary research experts from all the markets studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step 5: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
