LEDs are highly efficient, reliable, and offer a longer life span, which is anticipated to boost their application in both indoor and outdoor settings. These lights are cost-effective compared to incandescent lights, delivering around 50,000 hours of illumination with a small amount of energy consumed. Low cost of operation and reduced heat losses also make them a suitable replacement for incandescent lights. Technological advancements, shift from conventional to green lighting, and enhanced energy-efficiency standards have also spurred the product demand.
The global LED lighting market size was valued at USD 50.91 billion in 2020 and is expected to witness a compound annual growth rate (CAGR) of 12.5% from 2021 to 2028. Stringent regulations to ban or limit the use of inefficient lighting technologies and government rebate and retrofit programs to encourage the deployment of LED lighting are contributing to the market growth. LED lighting is comparatively expensive; however, it offers better service life and high lumen power at less wattage compared to incandescent, CFL, and halogen light sources. Moreover, continuously declining prices of LED lamps and luminaires and the availability of smart lighting solutions, coupled with updated energy policies across the world, are expected to provide an impetus for the market growth over the forecast period.
Impact of the Covid-19 on LED Lighting Market
In 2020, the Covid-19 pandemic disrupted the overall market growth. Major players, such as Acuity Brands Lighting and Signify Holdings, incurred revenue losses owing to a decline in demand, disruption in supply and distribution, and delay in completion of construction projects (that help create the demand for lighting). In addition, the temporary lockdown and partial ban on mobility led to a declined contribution to the market from the industrial and commercial sectors, such as retail, manufacturing, and hospitality.
Performance of China Market in the Covid-19
China is the largest product exporter as well as manufacturer and has also gained prominence in terms of adoption across the country. However, it was the first country to be affected by Covid-19, which disrupted the supply of product components across the world and created the supply-demand gap. However, the availability of the Covid-19 vaccine and the decline in the rate of infections in 2021 are expected to redirect the market toward growth as businesses resume operations.
The LED luminaires segment dominated the market in 2020 and accounted for over 55% of the global revenue share. Based on product, the market has been segmented into lamps and luminaires. Luminaires are widely used in commercial and industrial segments. New installations predominantly drive the demand for LED luminaires. The segment includes lights used in streetlights, high bays, downlights, track lights, troffers, and suspended pendants for various applications. LED luminaires deliver more light per output power.
They are easier to control and permit optic designers to use them more proficiently and use less light to illuminate the same area. The U.S. Environment Protection Agency (EPA) predicts that LED would dominate light bulb technology in the coming years, provided the awareness and promotion of LED bulbs by manufacturers, distributors, and retailers are strong. LED manufacturers upgrading their products or adding new lighting solutions to their portfolios had to cancel offline events owing to Covid-19. However, they were able to launch their offerings through online conferences.
In conclusion, the development prospect of led-related products is excellent. If you are looking for a reliable merchandise of LED Displays, don't miss the chance and contact us now! We will offer our best solution and service for your projects.