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Asia-Pacific region will be the strongest revenue contributor, propelled by construction, government endorsement and high presence of LED factories, finds Frost & Sullivan’s Homes & Building team

LONDON – 18 April 2017 – The light-emitting diode (LED) market evolution continues with a steep decline in cost per unit, high energy-efficiency ratings, market shift toward these lighting solutions, and favorable government initiatives driving adoption. The Internet of Things (IoT) will disrupt the market, shifting focus from energy efficiency, product reliability, and O&M costs to include controllability, connectivity, and technology integration in smart buildings and smart cities.

OLED Lighting_TI.jpg“New technologies driven by IoT, such as light-as-a-service (Laas), will usher in connected lighting and living, enabling better energy management and new services and business models like financing and leasing,” said Energy & Environment Research Analyst Sabnam Gafoor. “On the flip side, new business models and an influx of new players from the Asia-Pacific will make the future market a fragmented one.”

Global LED Lighting Market (2017 Update), part of Frost & Sullivan’s Homes & BuildingsGrowth Partnership Service program, finds that the LED lighting market accounted for almost 60 percent of global lighting in 2016 and was worth $47,303 million, growing 18.1 percent from the previous year. The research provides a detailed analysis of growth opportunities, technologies, revenue forecasts and competitor dynamics in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America. Strategic moves of market majors such as Philips Lighting, Osram GmbH, GE lighting and Cree Inc are also discussed.

Click here for complimentary access to more information on this analysis and to register for a Growth Strategy Dialogue, a free interactive briefing with Frost & Sullivan’s thought leaders: https://go.frost.com/forms/PR_ContactUs?PR=AZ&RS=MC95

The Asia-Pacific region contributes the most to global market revenues. Express construction in many Asian countries, government endorsement of energy-efficient lights in India and China, and the existence of a large number of LED chip and package factories in China, Japan, South Korea, and Taiwan are factors driving growth.

Other developments in LED lighting include:

  • The residential LED lighting market will witness a year-on-year growth rate of 16.7 percent this year.
  • IoT-enabled LED lighting will fast-track the growth of connected buildings and their services.
  • LED lighting is likely to account for 80 percent of the total lighting market by 2020, creating an $80 billion market. By 2025, LED will account for 98 percent of the global lighting market.
  • India, Asia-Pacific, Latin America, and Africa are set to record the highest growth rates.
  • Although residential, outdoor, and retail make the highest contributions at present, office, industrial and hospitality are expected to be future growth sectors.
  • Organic LED (OLED) lighting is gaining popularity as a solid-state lighting (SSL) technology due to its ability to emit warm light over large areas, provide color comfort, and bring improved form factors to the lighting industry.

To remain competitive and relevant in an evolving ecosystem, LED players should seek to improve manufacturing efficiencies by adopting a larger wafer size, utilise intelligent lighting through integrated control devices, implement active and passive cooling techniques for device longevity, and replace expensive substrate materials with cheaper alternatives,” noted Gafoor.

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Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community.

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E: anna.zanchi@frost.com

About Frost & Sullivan

Frost & SullivanFor over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.

About Frost & Sullivan

Frost & Sullivan

For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.

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