by The energy efficient lighting technology primarily focuses on using lighting solutions that consume lesser energy and are eco-friendly substitutes for conventional incandescent and halogen lights. Light Emitting Diodes (LED) bulbs, compact fluorescent lamps, organic light-emitting diodes, and phosphor-converted LEDs are the most commonly used energy efficient lights that provide the same levels of illumination as conventional lamps but with nearly 70-80% less energy. LED lighting solutions have longer operational lives compared to other alternatives, come in various colors and designs, and do not contain mercury which is a hazardous material found in CFL bulbs. Rapid urbanization and rising global population have increased the demand for lighting solutions across residential, commercial, and industrial sectors. Additionally, various governments and corporate entities are undertaking initiatives to adopt sustainable lighting practices in alignment with the United Nations Sustainable Development Goals, which is driving the energy efficient lighting technology market.
The Global Energy Efficient Lighting Technology Market is estimated to be valued at US$ 237.54 Bn in 2024 and is expected to exhibit a CAGR of 7.9% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the energy efficient lighting technology market are Bajaj Electricals Ltd, Bridgelux, Inc., Cooper Lighting, Cree, Inc., Digital Lumens, Inc., Eaton Corporation, General Electric Co., LED Roadway Lighting Ltd., LIGMAN Lighting Co., Ltd., Nichia Corporation, OSRAM Licht Group, Philips Lighting Holding B.V., Toshiba Lighting & Technology Corporation, and Zumtobel Group AG. LED lights produced by these major players are becoming increasingly popular among commercial and residential users due to their long lifespan and energy savings.
Energy Efficient Lighting Technology Market Demand has witnessed exponential growth owing to rising demand for cost-effective and environment-friendly illumination sources across different sectors. Additionally, government regulations and incentives promoting energy efficient bulbs over regular incandescent lamps to reduce carbon footprint are further fueling market growth. Various developing nations in Asia are expected to drive future demand growth.
Key players are expanding their global footprint by establishing production plants, facilities, and distribution networks in fast developing lighting markets across Asia, Middle East, and South America. Acquisitions and collaborations allow companies to leverage complementary technologies, manufacturing capabilities, and geographic reach. Promotional campaigns are raising consumer awareness about benefits of LED lights which is propelling their widespread adoption globally.
Market Key Trends
Development of affordable horticulture lighting solutions using LED Grow Lights technology is one of the key trends in the energy efficient lighting market. LED grow lights have taken over High Intensity Discharge (HID) lights in modern vertical farming and greenhouses owing to their customizable full-spectrum illumination, high photosynthetic efficacy, and low thermal output. They play a vital role in sustainable indoor agriculture and year-round harvesting of crops. With continued price reductions, LED grow lights are becoming widely accessible and enabling small-scale urban farming worldwide. Other new product developments centered around IoT-based smart lighting controls, ultraviolet LED disinfection, and specialized agricultural lighting fixtures are further expanding applications of energy efficient lighting technology.
Porter’s Analysis
Threat of new entrants: The energy efficient lighting technology market is facing low threat from new entrants due to high initial investments required and presence of strong established players.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of several alternatives and brands in the market providing similar energy efficient lighting solutions.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of several component suppliers and established supply chains of major players.
Threat of new substitutes: The threat from substitutes is low as energy efficient lighting solutions don’t have close substitutes fulfilling the purpose of reduced energy consumption and low operational costs.
Competitive rivalry: The competitive rivalry is high among major global players owing to their continuous new product launches and investments in innovation.
Geographical Regions
North America region accounted for the largest value share in the global energy efficient lighting technology market owing to stringent government regulations and policies regarding energy efficiency.
Asia Pacific is expected to be the fastest growing region during the forecast period due to rapid industrialization, growing construction industry coupled with supportive government incentive programs regarding energy efficient infrastructure in countries like China and India.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
