Artificial lighting or electric lighting is a light source that produces visible light using an artificial source like light emitting diodes (LEDs), incandescent light bulbs, fluorescent lamps, high-intensity discharge lamps (HID) and others. Artificial lighting provides illumination in indoor areas as well as outdoor applications and is widely used across homes, commercial spaces like malls, retail outlets, hospitals and high mast towers for street lighting. The adoption of LED lighting panels and bulbs has increased significantly owing to their longer lifespan and energy efficiency as compared to traditional incandescent and CFL bulbs. LED lights also have directional lighting properties that enable lighting fixtures to direct light only where it is needed.
Artificial lights market is estimated to be valued at USD 99.89 Bn in 2024 and is expected to reach USD 123.69 Bn by 2031. It is projected to grow at a compound annual growth rate (CAGR) of 3.1% from 2024 to 2031.
Key Takeaways
Key players operating in the Artificial Lights Market are Philips lighting, Cree lighting, OSRAM Licht AG, Acuity Brands, GE Lighting, Eaton Corporation, Nichia Corporation, LG Innotek, Panasonic Corporation and Samsung Electronics.
Rapid urbanization and growth of infrastructure in developing economies have propelled the demand for efficient lighting systems across residential as well as commercial spaces. Furthermore, increasing disposable incomes have driven the adoption of advanced lighting solutions among consumers.
The major players are expanding their presence globally, especially in Asia Pacific and Middle East regions, to tap the increasing demand from construction and infrastructure development activities. Acquisitions and partnerships with lighting equipment providers have further strengthened their distribution networks worldwide.
Market drivers
Stringent regulations regarding energy consumption from lighting systems have accelerated the replacement of conventional lamps with LED equivalents. Government policies providing subsidies for adoption of energy-efficient lights is a major factor driving the Artificial Lights Market Additionally, LED lights offer significant cost savings over the lifetime due to their longer operational lifespan and lower power consumption compared to traditional lamps. The payback period of switching to LED lights continues to decrease annually, encouraging end users across the regions.
Geopolitical Impacts on Artificial Lights Market Growth
The ongoing geopolitical tensions and conflicts across various regions are posing challenges for the growth of the global artificial lights market. Most countries are experiencing negative GDP growth and economic downturn due to diversion of funds towards defense budgets at the cost of other development plans. The declining disposable incomes and suppressed consumer sentiments are negatively impacting the sales of artificial lighting products.
The global supply chains of many lighting product manufacturers are experiencing disruptions due to trade barriers and restrictions. This is hindering the cross-border movement of raw materials and finished goods. The market players need to focus on building resilient and agile supply networks that can adjust quickly to the changing geopolitical dynamics. Localization of production activities can help reduce dependencies on volatile global trade routes.
Adopting an adaptive and flexible market entry strategy according to the changing political scenarios of different countries will be crucial. The brands must closely monitor the policy shifts and calibrate their expansion plans accordingly. Entering into strategic partnerships with local players can mitigate political risks in unstable markets. Diversifying manufacturing/sourcing footprints across favorable and stable jurisdictions will offer natural hedges.
Geographical Concentration of Artificial Lights Market
In terms of revenue, the artificial lights market currently witnesses highest concentration in the Asia Pacific region. Major countries like China, India, Japan and South Korea collectively account for over 40% of the total global market value. This is attributed to large population bases, rapid urbanization and industrialization activities. The increasing construction of malls, offices, houses and factories has fueled strong demand growth in Asia Pacific.
Fastest Growing Region in Artificial Lights Market
Central and Eastern Europe has emerged as the fastest growing regional market for artificial lights globally. The availability of favorable policies promoting energy efficient lighting adoption across countries like Poland, Hungary and Czech Republic has driven strong uptake of LED lights. Growing infrastructure development projects coupled with rising living standards are augmenting the demand from residential and commercial sectors. Furthermore, government incentives on investments in this region attract large manufacturers to establish production facilities. This ensures adequate supplies and strengthens the overall market development.
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