Product Code: 65300
The outdoor LED lighting market is expected to register a CAGR of over 14.0% during the forecast period (2021 - 2026). LED technology helps offer small and efficient lighting solutions, to a diverse set of consumers, with power saving and enhanced efficiency. The LED market is severely affected by the spread of the novel comnavinus. This is because manufacturers are facing a supply shortage of electronic components, which are usually sourced from China. For instance, the Electric Lamp and Component Manufacturers Association (ELCOMA) has recently stated that in the case of india, this may impact the connected lighting solutions and professional lighting segment more, as it accounts for a larger share of imported components.
- The ongoing transformation and the infrastructure expansion projects are further expected to surge the demand for outdoor LED lighting, leading to the market growth. For instance, initiatives, such as Smart Cities, is expected to support the development of the outdoor LED lighting market.
- LED is energy-efficient and provides better illuminating experience than incandescent lights. Additionally, the awareness about conserving energy among the consumers is driving the adoption of LED for outdoor applications. Prominent companies, such as The Capital Group and Philips, are collaborating to drive the primary goals for outdoor smart lighting, in order to achieve considerable success in replacing all traditional lights with LED smart lighting by 2025.
- The maintenance cost of LED lightings is significantly lower than that of the incandescent lights. Hence, in countries, like China and India, the governments are encouraging the adoption of LED technology for roadway and highway applications, in order to save energy and maintenance cost.
- The global LED penetration has been continuously increasing. According to Goldman Sach, it is expected to reach 100%, by 2025. Additionally, the demand for smart controls in street lighting systems is boosting the growth of outdoor LED lighting market. However, the high initial investment for adopting LED lightings is restricting the market growth.
Key Market Trends
The Roadway and Highway Segment to Show Significant Growth
- More than half of the global population live in urban cities, and the ratio is continuously increasing per year. Moreover, in highly dense cities, this rate is even higher. Owing to rapid urbanization, major infrastructure developments, including construction of highways for connecting cities, are taking place. Hence, the demand for outdoor LED lightings is increasing.
- LED lights consume 75% less energy and last for 25 times longer than incandescent bulbs. They have the highest potential for saving energy and cost. Hence, replacing old lighting systems with LED lightings has been observed to be beneficial, due to which, the demand for new installations in the outdoor LED lighting market is significantly increasing.
- The Department of Transportation (DOTS) and Municipalities are switching the roadway luminaires from HPS to LED for its cost-saving energy efficiency, product longevity, reduced maintenance, and minimal light pollution. For instance, the Rhode Island Department of Transportation has installed LEDs, with color changing light guides integrated into the roadway lighting poles on the Sakonnet River Bridge. which connects the towns of Tiverton and Portsmouth. RI. The California Department of Transportation also adopted LEDs.
- Government initiatives are also fueling the market growth, as many governments across the world are structuring regulations for encouraging LED adoption. For instance, in India, the government aims to replace 14 million street lights, across the country, with intelligent lighting control systems.
Asia-Pacific is Expected to Witness Highest Growth Rate
- Asia-Pacific is currently experiencing a tremendous shift in lighting systems. Several companies operating in the region are increasingly adopting LED lighting, as compared to its counterparts, like incandescent and LFL, for use in their manufacturing plants, owing to the improved energy-efficiency offered by LED lighting systems.
- In India, the government has implemented a series of policies and programs to support the development of the outdoor LED lighting industry, among which, the most important is the SLNP (Street Light National Program), which is an initiative to replace 21 million streetlights with LED. Additionally, in order to promote investments in the market, the Indian government has only imposed free tariff (basic tariff) on LED component imports, facilitating the LED products to enter the market as semi-finished products, in turn, developing the local market.
- China, for instance, has been looking for the framework to replace the fluorescent bulb with LED. In the country, the National Development and Reform Commission (NDRC) and the Ministry of Finance (MOF) have taken several measures to administer subsidies for outdoor LED lighting products.
- Southeast Asia is also becoming a major export hub for Chinese LED lighting products. And, the Japanese government's long-term goals incorporate lighting projects and infrastructures related to the 2020 Olympics. These trends signify the growth of the outdoor LED lighting market in the region.
As many companies are engaged in innovation in advanced lighting, the market is moderately consolidated. Considering the increasing concerns about energy management, lighting companies are investing in the same, by partnering with energy management providers. Given below is a recent development in the market:
- August 2021 - Dialight announced thier new LED flooed light Modular ProSite Series which produces 12,000 to 65,000 lumens depending upon models and reaches up to 165 LPW, with mounting height capacity of 100 feets.
- July 2021- Signify acquired Telensa Holdings Ltd a smartcity solution provider. This acquisition supports the strategy of Signify to provide services of cost efficient connected lightings to towns and cities around the world.
- March 2021 - SMART Global Holdings announced the complition of acquisition of Cree LED. This brings industry leading product development capabilities and technology, expansive R&D expertise, outstanding customer relationships and strong IP with more than 2,000 patents of Creed LED, helping SMART Global to expand their business in LED market.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
TABLE OF CONTENTS
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Drivers
- 4.1.1 Rising Demand for Cost-efficient Lights
- 4.1.2 Stringent Government Regulations Regarding Energy Consumption
- 4.1.3 Decreasing Cost of LED
- 4.2 Market Restraints
- 4.2.1 High Initial Investment
- 4.3 Industry Value Chain Analysis
- 4.4 Industry Attractiveness - Porter's Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
- 4.5 Assessment of COVID-19 Impact on the Industry
5 MARKET SEGMENTATION
- 5.1 By Installation Type
- 5.2 By Application
- 5.2.1 Highway and Roadway
- 5.2.2 Industrial
- 5.2.3 Airport Perimeters
- 5.2.4 Parking Lots
- 5.2.5 Sports Stadiums
- 5.2.6 Other Applications
- 5.3 Geography
- 5.3.1 North America
- 18.104.22.168 United States
- 22.214.171.124 Canada
- 5.3.2 Europe
- 126.96.36.199 Germany
- 188.8.131.52 United Kingdom
- 184.108.40.206 France
- 220.127.116.11 Rest of Europe
- 5.3.3 Asia-Pacific
- 18.104.22.168 China
- 22.214.171.124 Japan
- 126.96.36.199 India
- 188.8.131.52 Rest of Asia-Pacific
- 5.3.4 Latin America
- 184.108.40.206 Brazil
- 220.127.116.11 Argentina
- 18.104.22.168 Rest of Latin America
- 5.3.5 Middle East & Africa
- 22.214.171.124 United Arab Emirates
- 126.96.36.199 Saudi Arabia
- 188.8.131.52 South Africa
- 184.108.40.206 Rest of Middle East & Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Signify Holdings
- 6.1.2 Cooper Industries Ltd
- 6.1.3 General Electric Company
- 6.1.4 Osram Licht AG
- 6.1.5 Cree Inc.
- 6.1.6 Hubbell Incorporated
- 6.1.7 Astute Lighting Ltd
- 6.1.8 Bamford Lighting Limited
- 6.1.9 Dialight Corporation
- 6.1.10 Eaton Corporation
- 6.1.11 Evluma
- 6.1.12 Syska Led Lights Private Limited
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS