Frost & Sullivan’s recent analysis, 2020 Annual Update of Global LED Lighting Market, finds that the increasing demand for energy-efficient lighting, the rising number of smart city projects and overall infrastructure development are driving the LED lighting market across the globe.
The market is estimated to reach $82.0 billion by 2026 from $67.7 billion in 2019, at a compound annual growth rate (CAGR) of 2.8%. However, with the COVID-19 pandemic, the industry is likely to experience varied impacts across regions due to discrepancies in containment measures and lockdown implementation.
Even with the partial ease in lockdowns and a resumption of manufacturing, the market will need a couple of years to recover and reach the same level as before the crisis.
“Smart buildings will accelerate the adoption of smart lighting more than any other segment. The revitalization of cities will also provide the much-needed impetus for the installation of smart lighting,” said Dennis Marcell Victor, Energy & Environment Research Analyst at Frost & Sullivan. “Government rebates, savings on disposal costs, improved performance of workers, and limitless Internet of Things (IoT) applications for LED lighting present a good business case for LEDs to be adopted across applications.”
Victor added: “Lighting-as-a-Service (LaaS) will see higher adoption and usher in a new business model while driving other applications such as connected lighting and facility management. It is expected to reduce the capital expenditure of the consumer, with service providers bearing upfront costs.
According to the Frost & Sullivan report, increasing adoption of LED lighting across healthcare, automotive, industrial, and office segments presents immense growth prospects for market participants, including:
- LaaS business model: Companies need to take a pragmatic approach toward monetizing LaaS to improve revenue.
- Digital LED lights for automobiles: Autonomous vehicles need to implement digital LED lights technology to enhance safety features.
- Circular economy for LED lighting: Circular economy measures should start from the design phase. Designing modular, upgradeable, and reusable products will help reduce waste from used LED light sources.
- UVC-LEDs for disinfection: UV-C lights should be used to disinfect workplaces, healthcare centres, and public transport. Proper guidelines should be outlined for handling UV-C lights for widespread usage.