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

UK LED Lighting Market Analysis

The UK LED Lighting Market size is estimated at 1.35 billion USD in 2025, and is expected to reach 1.72 billion USD by 2030, growing at a CAGR of 4.97% during the forecast period (2025-2030).

The UK LED lighting industry is experiencing significant transformation driven by industrial expansion and infrastructure development. In 2022, the country witnessed an addition of 900,000 square meters of warehouse space, bringing the total space to 36.95 million square meters, reflecting robust growth in the industrial and logistics sectors. Financial services firms in London demonstrated strong confidence in physical infrastructure by committing 2.8 million square feet of new office space in 2022, signaling a sustained demand for commercial LED lighting solutions. The government's commitment to sustainable infrastructure is evident through the funding of over 130 new walking and cycling projects by 2023, creating additional opportunities for outdoor LED lighting implementations.

The automotive and manufacturing sectors are emerging as significant growth catalysts for the LED lighting market. British factories demonstrated strong production capabilities, manufacturing 79,046 new cars in May 2023, with exports increasing by almost 30% to 62,858 vehicles. Major manufacturers are expanding their presence, as evidenced by Crown Holdings' plans to construct a new 625,000 sq. ft beverage can manufacturing facility, which was scheduled to commence operations in Q2 2023. These developments are creating substantial opportunities for industrial LED lighting solutions.

The commercial real estate sector is witnessing notable developments that are reshaping the lighting industry landscape. Workspace provider Orega announced plans to double its UK portfolio size to over one million square meters in the coming two years, with expansion focused on Edinburgh, Newcastle, Aberdeen, and Cardiff. This expansion includes a new 37,000 sq. ft management agreement at 70 Gracechurch Street, EC3, scheduled to open in January 2024. The retail sector shows signs of recovery, with retail sales increasing by 0.3% in May 2023, following a 0.5% growth in the previous month.

Sustainability initiatives and energy efficiency projects are gaining momentum across various sectors. Signify's recent project with Somerset County Council, involving the upgrade of 20,000 conventional light points to the Philips TrueForce LED range, demonstrates the growing adoption of energy-efficient lighting solutions. The logistics sector is expanding sustainably, as evidenced by Maersk's agreement for a 685,000 sq. ft leasing facility at SEGRO Logistics Park, which was set for completion in June 2023. These developments highlight the increasing integration of LED lighting solutions in modern infrastructure projects and the industry's commitment to environmental sustainability.

UK LED Lighting Market Trends

An increase in residential real estate may drive the growth of the LED market

• In 2021, there were 56.5 million people living in England, and 1.56 children were born in the country. There was a 0.1-point decrease from 2019 to 2021. In 2020, the death rate in the United Kingdom dropped to 9.7 fatalities per 1,000 people, which translated to a decrease of 0.4 fatalities per 1,000 people (-3.96%) in 2021. In the United Kingdom, the demand for LEDs is expected to increase due to population growth and a drop in the death rate.
• England's housing stock has steadily grown, reaching a total of about 25 million homes as of 2021. There were around 44,500 build-to-rent homes in the country's 71,400 planned residences as of the second quarter of 2022. The UK residential real estate market experienced a rise in activity in 2021 before seeing a dip in 2022 after stagnating due to the epidemic. The number of transactions with a value of at least GBP 40,000 (USD 50475.20) increased from about 1 million units in 2020 to over 1.5 million units in 2021 and 1.3 million units in 2022. The average property price is anticipated to rise across the country, along with the anticipated rise in transactions. As a result of the increase in average price transactions, more people will likely buy homes in the future, thus increasing the demand for LEDs.
• In the United Kingdom, there were 32,889,462 automobiles with valid licenses in 2021. English homes had an average of 1.24 vehicles in 2020. In the country, there were 1,632,997 electric vehicles in 2021, a 6.9 increase from 2014. About 5% of vehicles in the country were powered by electricity entirely or in part at the end of 2021. Hybrid electric vehicles are by far the most common, with 932,335 units on the road in 2021. More LEDs are expected to be used in the country as the number of vehicles and EVs increases.

Increasing per capita income and the government policy to roll out the use of energy-efficient lighting may boost the use of LEDs.

• In 2022, the number of UK families was projected to reach 19.4 million, an increase of 5.7% from 18.4 million in 2012. The expected number of households in the United Kingdom in 2022 was 28.2 million, 6.1% more than that in 2012 (26.6 million). Thus, the increasing number of families and households may create more demand for LEDs in the country. During 2021-2022, there were 15.6 million owner-occupied households, representing 64% of all households in the country. This percentage increased from 63% during 2016-2017 but remained constant during 2020-2021. It has been consistent throughout the past 10 years. The disposable income in the United Kingdom is high, resulting in rising spending power of individuals and more spending on new residential spaces. The country's per capita income reached USD 33,138.0 in December 2022 compared to USD 36,516.3 in December 2021. Compared to some developed nations, the United Kingdom had high purchasing power in 2021, even though per capita income decreased compared to the previous year. For instance, in Brazil, it was USD 7732.4, while in France, it was USD 25,337.7 as of 2021.
• Housing starts in the country decreased to 39,220 units in Q4 2022 from 43,140 units in Q3 2022. Even though housing projects declined, the demand for LEDs existed. However, it was less in the residential segment compared to previous quarters. The government announced the launch of a consultation on a new energy-efficient lighting proposal. Under this proposal, lighting such as low energy-use LEDs will be rolled out to replace old halogen bulbs, which could save households between GBP 2,000 (USD 2523.76) and GBP 3,000 (USD 3785.64) over the lifetime of the bulbs. Such instances are further expected to boost the demand for LED lighting in the country in the future.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Indoor Lighting

Industrial and Warehouse Segment in UK LED Indoor Lighting Market

The Industrial and Warehouse segment dominates the UK indoor LED lighting market, commanding approximately 47% of the market share in 2024. This segment's prominence is driven by the rapid expansion of e-commerce and logistics infrastructure across the United Kingdom. The growing demand for EVs and semiconductor chips is creating additional manufacturing facilities and warehouses, further boosting the segment's growth. In May 2023, British factories manufactured 79,046 new cars, showing a significant increase from the previous year. Major logistics companies like Maersk are expanding their warehouse networks, as evidenced by their new 685,000 sq. ft facility at SEGRO Logistics Park. Additionally, the UK government's initiative to support domestic semiconductor production through subsidies is expected to create more manufacturing facilities, driving the demand for industrial LED lighting solutions.

Commercial Segment in UK LED Indoor Lighting Market

The Commercial segment, encompassing office spaces, retail establishments, and other commercial facilities, represents a significant portion of the UK indoor LED lighting market. The demand for office spaces has shown remarkable recovery, with London experiencing a 24% rise in office space demand in 2022 compared to the previous year. The retail sector is witnessing transformation with innovative developments, such as IKEA's acquisition of a prime Oxford Street location for a new store opening in 2023. Healthcare facilities are expanding rapidly, with NHS hospitals focusing on virtual wards and improved healthcare services across Scotland, England, and Wales. The segment is particularly driven by energy efficiency requirements and the growing trend of smart LED lighting solutions.

Remaining Segments in Indoor Lighting

The residential and agricultural lighting segments complete the UK indoor LED lighting market landscape. The residential segment continues to benefit from government initiatives promoting energy-efficient lighting solutions and new housing developments across the country. The agricultural lighting segment, while smaller in market share, plays a crucial role in supporting the country's growing indoor farming and horticulture sector. This segment is particularly important for vertical farming initiatives and controlled environment agriculture, with several major projects being implemented across the United Kingdom. Both segments are experiencing transformation through technological advancements and increasing adoption of smart LED lighting solutions.

Segment Analysis: Outdoor Lighting

Public Places Segment in UK LED Lighting Market

The public places segment dominates the UK outdoor LED lighting market, commanding approximately 81% market share in 2024. This significant market position is driven by the increasing adoption of LED panel lighting in various public spaces, including amusement parks, parking lots, and areas around airports. The segment's growth is further supported by ongoing smart city initiatives and infrastructure modernization projects across the United Kingdom. For instance, Heathrow Airport's comprehensive modernization of LED lighting, carried out in collaboration with Glamox Luxo Lighting, demonstrates the segment's robust development. The investment in energy-efficient technologies has not only improved passenger environments but also contributed to reducing energy consumption and CO2 emissions. Additionally, manufacturers like Signify (Philips) are continuously launching innovative outdoor LED products designed to work effectively in changing weather conditions while meeting the growing demand for reduced energy consumption.

Streets and Roadways Segment in UK LED Lighting Market

The streets and roadways segment is experiencing steady growth in the UK outdoor LED lighting market, with a projected growth rate of around 4% from 2024 to 2029. This growth is primarily driven by the increasing complexity of transportation infrastructure and the need for improved street lighting to ensure smooth traffic flow while maintaining cost-effectiveness. The segment is witnessing significant developments through various smart city initiatives, where intelligent street lighting is considered an ideal solution for providing energy-efficient illumination while enabling real-time visibility and control through smart city management software. The City of Glasgow's implementation of 'smart street lighting' as part of its City of the Future initiative exemplifies this trend, incorporating energy-efficient LED lighting with real-time data feed capabilities for manual brightness adjustment. The system also integrates motion sensors for monitoring pedestrian frequency and traffic flow, generating valuable data for urban planning while incorporating air pollution monitoring within lighting networks.

Remaining Segments in Outdoor Lighting

The other segments in outdoor LED lighting encompass specialized applications such as architectural lighting, stadium lighting, and decorative outdoor installations. These segments are witnessing increased adoption due to various renovation and modernization projects across the United Kingdom. The implementation of LED technology in these areas is driven by the need for energy efficiency and enhanced lighting control capabilities. Stadium lighting, in particular, has seen significant developments with major venues upgrading their lighting systems to meet broadcasting standards and improve spectator experience. Architectural lighting applications are also gaining prominence as cities focus on enhancing their nighttime aesthetics while reducing energy consumption. These segments collectively contribute to the overall market growth by providing specialized lighting solutions for specific outdoor applications.

Segment Analysis: Automotive Utility Lighting

Headlights Segment in Automotive Utility LED Lighting Market

Headlights continue to dominate the UK automotive utility LED lighting market, commanding approximately 48% of the total market value in 2024. This significant market position is primarily driven by stringent safety regulations and increasing adoption of advanced LED headlight technologies in new vehicle models. Major automotive manufacturers in the UK are increasingly incorporating sophisticated LED headlight systems that offer improved visibility and energy efficiency. The segment's growth is further supported by innovations in adaptive lighting systems and the rising demand for premium vehicles equipped with advanced lighting features. For instance, Range Rover's redesigned Velar introduced in 2023 showcases new LED headlights with distinctive Daytime Running Lamp signatures, reflecting the ongoing technological advancement in this segment. The market is also benefiting from the growing electric vehicle sector, where efficient LED headlight systems play a crucial role in overall energy management.

Tail Light Segment in Automotive Utility LED Lighting Market

The tail light segment is emerging as the fastest-growing category in the UK automotive utility LED lighting market, projected to grow at approximately 5% annually from 2024 to 2029. This remarkable growth is attributed to increasing safety regulations and innovative design trends in automotive lighting. The segment is witnessing significant technological advancements, particularly in the integration of dynamic lighting patterns and enhanced visibility features. Automotive manufacturers are increasingly focusing on developing sophisticated tail light systems that combine safety with aesthetic appeal. The growth is further accelerated by the rising adoption of smart lighting solutions that enable better communication with other road users. Recent innovations include the integration of advanced LED technologies that offer improved energy efficiency and longer operational life, making them particularly attractive for electric vehicle manufacturers who prioritize energy optimization.

Remaining Segments in Automotive Utility Lighting

The automotive utility lighting market encompasses several other crucial segments including Daytime Running Lights (DRL), directional signal lights, reverse lights, and stop lights. Each of these segments plays a vital role in vehicle safety and functionality. DRLs have become increasingly important in modern vehicle design, contributing significantly to daytime visibility and brand recognition. Directional signal lights continue to evolve with new LED technologies offering enhanced visibility and durability. Reverse lights are seeing innovations in terms of brightness and coverage area, while stop lights are being developed with advanced features like emergency brake signaling. These segments are collectively driving innovation in the automotive lighting industry, with manufacturers focusing on developing integrated lighting solutions that combine multiple functions while maintaining high safety standards and aesthetic appeal.

Segment Analysis: Automotive Vehicle Lighting

Passenger Cars Segment in Automotive Vehicle Lighting Market

The passenger cars segment continues to dominate the UK automotive vehicle lighting market, commanding approximately 93% market share in 2024. This dominance is primarily driven by the increasing adoption of advanced LED lighting technologies in modern passenger vehicles. The UK government's initiatives to promote electric vehicles through grants and incentives are significantly boosting the passenger car segment, particularly in the premium and luxury vehicle categories where sophisticated LED lighting systems are standard features. The segment's growth is further supported by stringent safety regulations requiring advanced lighting solutions such as adaptive headlights and intelligent lighting systems. Major automotive manufacturers in the UK are increasingly incorporating innovative LED lighting designs in their new models, particularly in electric vehicles, which is strengthening the segment's market position. The rising consumer preference for vehicles with advanced safety features and aesthetic lighting solutions is also contributing to the segment's substantial market share.

Two Wheelers Segment in Automotive Vehicle Lighting Market

The two-wheelers segment is emerging as the fastest-growing category in the UK automotive vehicle lighting market between 2024 and 2029. This growth is primarily driven by the increasing adoption of electric motorcycles and scooters, which typically feature advanced LED lighting systems. The segment is experiencing significant transformation with manufacturers focusing on innovative lighting solutions that enhance both safety and aesthetics. Recent developments in smart lighting technologies specifically designed for two-wheelers, including adaptive headlights and integrated LED systems, are fueling this growth. The UK government's push towards electric mobility and sustainable transportation options is creating new opportunities for LED lighting manufacturers in the two-wheeler segment. Additionally, the rising popularity of premium motorcycles equipped with sophisticated lighting systems and the growing emphasis on rider safety through better visibility solutions are contributing to the segment's rapid expansion.

Remaining Segments in Automotive Vehicle Lighting

The commercial vehicles segment represents a significant portion of the UK automotive vehicle lighting market, though smaller than the passenger car segment. This segment encompasses a wide range of vehicles including trucks, buses, and delivery vans, each requiring specific lighting solutions. The commercial vehicle segment is particularly important in the context of fleet operations and logistics, where reliable and energy-efficient lighting systems are crucial for operational safety and efficiency. The segment is witnessing increased adoption of LED lighting solutions, driven by the need for durability and lower maintenance costs in commercial operations. The growing emphasis on fleet electrification and the expansion of logistics infrastructure across the UK are creating new opportunities for LED lighting manufacturers in this segment. Commercial vehicle manufacturers are increasingly focusing on incorporating advanced lighting technologies to enhance vehicle safety and operational efficiency.

Free With This Report

We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 40+ free charts, the sections cover difficult to find data on various countries on Automotive Production, Lighting Electricity Consumption, Road Network, Number of Stadiums, Number of Charging Stations among others.