The global industrial and commercial LED lighting market is expected to reach $165.91 billion by 2022, according to a new report by Grand View Research. That figure represents a more than a seven-fold increase from the market’s 2014 estimated value of $21.53 billion.
A shift toward the implementation of energy efficient, cost-effective systems is expected to proliferate demand during the forecast period (2012–2022). Smart lighting, particularly due the prevalence of smart city projects across the United States and Europe, is projected to offer lucrative growth opportunities for the industry.
Stringent government regulations, bans on incandescent lamps and the establishment of minimum efficiency standards by various governments across the globe will also help to propel industrial and commercial LED lighting market growth. Brazil, for example, has banned 60-watt and 100-watt incandescent lamps since 2012.
The report includes the following additional key findings:
- The commercial lighting market accounted for over 50 percent of the overall industry in 2014. Growing demand for LED street lights in the United States, China and Germany is expected to foster growth. Commercial building construction across the globe will also increase demand.
- The industrial segment is expected to witness considerate growth over the next seven years. Pressure to reduce operational and maintenance cost in industries and growing demand for less energy consumption are driving growth across this application.
- The architectural LED lighting segment accounted for over 30 percent of the revenue in 2014 and is expected to witness strong growth, owing to the declining average price and continuous improvement in luminous efficiency of white light.
- Asia Pacific demand share exceeded 40 percent in 2014. Increasing construction of office spaces, commercial buildings and retail stores in Australia, China and India is estimated to drive the demand for general lighting.
- Growing energy consumption is expected to lead to a surge in demand for efficient LED lighting technology over the next seven years.
Navigant Research estimates that the global revenue from LED lighting systems will total $216 billion from this year to 2024.