LED lighting systems are attractive as they are durable, save energy and last longer
LED lamps are energy efficient, possess a long lifetime and have a service life of 50,000 hours or more. They are rugged as they consist of a solid material and do not contain any filament or tube that is fragile. LED lamps require no warm up period and they light instantly in nanoseconds. They are also environmentally friendly as they consume less energy and do not contain mercury or any other hazardous substances. Due to these desirable properties of LED, they are ideal in situations where lamps are required to be switched on and off frequently and can be easily dimmed. As LED lamps do not wash out colors like fluorescent lamps, they are perfect for displays and retail applications as well. Besides, LED lighting has zero UV emissions and they can also run on low voltage power supply. Due to these distinct advantages of LED lighting, the global market for LED lighting is expanding at a fast pace and LED lighting has the potential to revolutionize the lighting sector.
Persistence Market Research analysis reveals that the global LED lighting market was valued at nearly US$ 37,000 Mn in 2017 and is expected to touch a figure of nearly US$ 126,000 Mn by the year 2025, registering a CAGR of 16.6% and exhibiting an increase of 3.4X in terms of revenue during the forecast period.
Supportive government regulations are fueling the growth of the global LED lighting market
Due to environmental considerations, governments all across the world are recognizing the advantages of LED lighting systems and are insisting on the implementation of specific standards for lighting products and at the same time restricting the use of incandescent lighting products so that energy can be saved and carbon dioxide emissions can be curbed. Besides, the use of LED lighting leads to an overall cutting of operating costs, and this in turn is driving the growth of the global LED lighting market. To emphasize this trend, reference of the Paris Agreement of December 2015 can be sought, in which more than 190 countries committed to carbon emission cuts of 20% by the year 2020. Also, another pertinent example is of the Chinese government, which banned the use of 100W and 60W incandescent bulbs. Also, on similar lines, the European Union has banned the use of all types of traditional incandescent lighting systems.
Sales of conventional lighting systems are expected to witness major downtrend in the upcoming years as every other consumer in the world is likely to prefer LEDs over incandescent or fluorescent ones. Rising awareness regarding benefits of LEDs will keep orchestrating steadfast growth in global demand for LED lightings. Persistence Market Research projects that by the end of 2025, over US$ 125 Bn worth of LED lightings will sold across the globe. Key insights in its forecast report on the global LED lighting market also predict that the market, which is presently valued at just over US$ 36 Bn, will expand at an impressive momentum and register 16.6% CAGR during the forecast period, 2017-2025.
Global LED lighting market forecast by application
As far as revenue is concerned, the indoor application segment is projected to be the most attractive segment in the global LED lighting market during the assessment period. This segment is anticipated to register high Y-o-Y growth rates during the forecast period and is slated to exhibit a CAGR of 19.3% between 2017 and 2025. The outdoor application segment was valued at nearly US$ 10,300 Mn in 2016 and accounted for 31.5% of the global market revenue share. The outdoor application segment has a high market share due to the fact that a majority of the outdoor applications of lighting are comparatively more exposed to local government decision making and are thus directly influenced by public policy interventions.