The LED market is expected to continue growing in the coming years. According to relevant statistical reports, the global LED lighting market was valued at $814.8 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 11.0% from 2023 to 2030. The main drivers of this growth include the expansion of the construction industry in both developing and developed countries, the implementation of government regulations restricting the use of inefficient lighting systems, and supportive measures taken by governments to reduce the price of LED lighting.
Moreover, LED lighting is favored for its long lifespan, flicker-free operation, high illumination intensity, and low energy consumption. LED manufacturers are also focusing on adding features such as Wi-Fi, occupancy sensors, and daylight harvesting to attract customers and increase product sales, thereby promoting market growth. Market participants also offer a variety of LED products, such as LED strips, LED bulbs, and LED tubes, to attract different potential audiences and support the growth of the LED lighting industry.
In terms of product types, the LED luminaires segment accounted for over 54% of the market share in 2022 and is expected to continue to dominate the global market. LED luminaires are used for track lighting, high-bay, troffers, and street lighting, among others. The main driving force behind this segment's growth is the expansion of commercial building spaces and the development of smart city initiatives, leading to the installation of new track lights and poles.
The LED bulbs category is expected to develop at the highest CAGR from 2023 to 2030 due to the widespread use of LED lighting systems in the residential sector. LED bulbs offer the advantage of improved energy efficiency and greater stability compared to incandescent and CFL bulbs. Another factor expected to support the growth of LED bulbs is government policies to raise public awareness of LED lighting and their ability to help reduce and manage energy usage.
In terms of application types, the indoor segment had the highest revenue share in 2022, exceeding 67%. This is due to the increased demand for replacements for high-intensity discharge and fluorescent bulbs in supermarkets, shopping centers, and retail stores. LED lighting generates less heat and is less costly than traditional lighting options. The growth of this segment is also expected to be driven by increased demand from public institutions such as hospitals and schools.
Regionally, the Asia-Pacific region accounted for the largest revenue share in 2022, approximately 43.0%. The market is expected to witness sustained growth during the forecast period. The demand for LED lighting is expected to increase as governments in emerging countries rapidly expand energy-saving measures and infrastructure projects. The growth of infrastructure in countries such as China, Japan, and India, along with the concentration of many manufacturers in these countries launching new products, will help drive the growth of the regional market. In addition, the increasing use of smart home solutions in the region is fostering an atmosphere conducive to the development of LED lighting. These factors together are driving the growth of the LED lighting market in the Asia-Pacific region.
Furthermore, according to another statistical report, the LED lighting market size is expected to grow at a compound annual growth rate of 8.08% from 2023 to 2028, with the market size increasing by about $415 billion. This growth is due to the decline in manufacturing costs of LED lights and the gradual phase-out of traditional lighting technologies (such as halogen, incandescent, fluorescent, and high-intensity discharge lamps) due to their inefficiency and environmental impact.
Overall, the LED market is expected to continue to grow rapidly in the coming years, thanks to a variety of factors, including the growth of the construction industry, government regulations, product innovation, and the increasing demand for energy-saving solutions.
In addition, A.Top believes that with the recovery of China's real estate, it will also significantly drive the growth of the LED lighting market. If Trump successfully takes office after the U.S. election, it will also increase investment in U.S. real estate, which will also drive the growth of the LED market.
Currently, the leading LED companies listed on the A-shares market include Mulinsen (002745), San'an Optoelectronics (600703), Foshan Lighting (000541), Absen, and Unilumin, among others.
Furthermore, NovaStar (301589.SZ), which holds a 70% share in the display control system field, is worth paying close attention to.