The global market for LED lighting will expand at a compound annual growth rate of 2.8% between 2019 and 2026, says a new report released by Frost & Sullivan.
Revenue generation within the market is expected to increase from $67.7 billion to $82 billion during the forecast period.
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.
LED lighting is a future-proof platform offering evolving technology trends such as Li-Fi and smart workplaces, says Frost & Sullivan
The Asia-Pacific (APAC) region is expected to continue to be the key growth area, drawing $35.4 billion in revenues by 2026, with India and China contributing the maximum revenue.
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Europe and North America will rank behind APAC owing to developments in advanced lighting applications related to the healthcare, industrial, office, and hospitality verticals.
Europe and North America will respectively witness a growth of 4.0% and 4.1%.
Latin America will experience the highest growth over the forecast period at 5.1% because of its focus on office and street lighting as part of smart city solutions.
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.
Dennis Marcell Victor, an energy and environment research analyst at Frost & Sullivan, said: “Smart buildings will accelerate the adoption of smart lighting more than any other segment. The revitalisation of cities will also provide the much-needed impetus for the installation of smart lighting.
“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.
“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.”