The global energy efficient lighting technology market was estimated at US$ 190 billion in 2022 and is expected to reach over US$ 404.52 billion by 2032, poised to grow at a noteworthy CAGR of 7.90% from 2023 to 2032.
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The Europe energy efficient lighting technology market was valued at US$ 200.7 billion in 2022 and is projected to expand around US$ 406.44 billion by 2032, growing at a CAGR of 8.2% from 2023 to 2032.
Based on region, Europe dominated the global energy efficient lighting technology market in 2022, in terms of revenue. Government’s increased efforts in several European nations to provide recognition to the commercial units that has deployed energy efficient lighting technology have significantly encouraged the market growth. The Energy Performance Certificates in European nations, necessitates the commercial units to deploy and follow the energy efficiency standards. The rapid economic growth in Europe and increased efforts of the people, corporates, and government to attain sustainability has significantly contributed towards the growth of the global energy efficient lighting technology market.
On the other hand, Asia Pacific is estimated to be the most opportunistic market during the forecast period. Asia Pacific is witnessing rapid industrialization, rapid urbanization, increased FDIs, and growing government initiatives to deploy sustainable and energy efficient solutions. The growing focus on the electrification of the rural areas in the nations like India, China, and Indonesia is presenting lucrative growth opportunities to the market players. Furthermore, rising government initiatives to promote the adoption of the energy efficient lighting technology is estimated to have a significant impact on the market growth. For instance, the Government of India invested around US$ 132 million in 2017 in EESL program, an energy efficient building program to encourage the adoption of the energy efficient lighting technology across the nation.
The global energy efficient lighting technology market is primarily driven by the rising demand for the energy efficient solutions owing to the rising energy prices, significantly growing consumption of energy, and green building initiatives of the government. The increased investment by the manufacturers to produce energy efficient products and rising consumer awareness regarding the energy efficient products is driving the demand for the energy efficient lighting technology. Moreover, the rapid industrialization and rapid urbanization is expected to boost the growth of the market in the forthcoming yeas. The growing number of real estate residential and commercial projects across the globe and rising adoption of the energy efficient lighting technology by the government sector to reduce costs is positively impacting the growth of the global energy efficient lighting technology market. The ongoing projects of smart cities in numerous countries and rising deployment of smart buildings across the globe is anticipated to drive the demand for the energy efficient lighting technology during the forecast period.
The stringent government regulations regarding the lightings and energy consuming devices and rising importance and efforts of various industries to achieve sustainability is boosting the adoption of the energy efficient lighting technology. Moreover, manufacturers are investing heavily and are focusing on new product developments that can offer improved energy efficiency. For instance, In December 2016, OSRAM introduced new DL 30 LED with asymmetric light distribution feature for deploying in the parks, crossings, and residential areas. The strategical developments like new product launches with innovative features is expected to have a significant impact on the growth of the global efficient lighting technology market. Moreover, rising urban population, rising investments for electrification of the rural regions, and rising awareness about the energy efficient lighting technology among the consumers is fueling the demand for the deployment of the energy efficient lighting technology across the underdeveloped regions across the globe.
|Market Size in 2023||US$ 204.06 Billion|
|Growth Rate||CAGR of 7.90% From 2023 to 2032|
|Fastest Growing Market||Asia Pacific|
|Forecast Period||2023 to 2032|
|Segments Covered||Type, Appliocation, Region|
|Companies Mentioned||Bajaj Electricals Ltd., Cree Inc., Eaton Corporation, General Electric Company, OSRAM Licht Group, Apple Inc., Nichia Corporation, Toshiba Lighting & Technology Corporation, LIGMAN Lighting Co., Bridelux Inc.|
Based on the type, the light emitting diode segment dominated the global energy efficient lighting technology market in 2022, in terms of revenue. The LED lightings has gained immense traction among the global population as it saves around 75% energy. It deployment of the LEDs can significantly reduce the energy consumption and can lead to low operational costs as compared to the traditional lighting technologies. Moreover, the toxicity of the CFL bulbs that contains harmful gases and chemicals, which has an adverse effect on the environment is compelling the consumers to opt for the safer and cheaper alternatives. Therefore, the demand for the LED segment is expected to grow significantly in the upcoming years and hence this segment is also expected to be the fastest-growing segment during the forecast period.
Based on the application, the commercial segment accounted largest revenue share in 2022. This can be attributed to the increased adoption of the energy efficient lighting technology in the commercial spaces. The energy efficient lighting technology helps the commercial units to reduce the energy consumption and reduce the overall operational costs, which provide better opportunities to increase profits. The rising industrialization and rising number of business across the globe has significantly contributed towards the growth of the commercial segment.
On the other hand, the residential is estimated to be the most opportunistic segment during the forecast period. This is mainly due to the rising government expenditure on the electrification of rural areas and villages. Moreover, rapid urbanization, rapidly growing urban population, growing number of residential real estate projects, and rising awareness regarding the benefits of the energy efficient lighting technology are the major factors that are expected to boost the growth of this segment during the forecast period.
Key Companies & Market Share Insights
The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing.
In June 2021, Syska launched their new LED lightings brand T5 LED Batten in India that are equipped with 440V over voltage protection.
The various developmental strategies like new product launches with latest and innovative features fosters market growth and offers lucrative growth opportunities to the market players.
Segments Covered in the Report
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