| Study Period | 2019 - 2032 |
| 2024 Market Size | USD 77.9 Billion |
| 2025 Market Size | USD 84.4 Billion |
| 2032 Forecast | USD 152 Billion |
| Growth Rate (CAGR) | 8.8% |
| Largest Region | APAC |
| Fastest Growing Region | APAC |
| Nature of the Market | Fragmented |
| Largest Application Category | Indoor |
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The global LED lighting market was valued at USD 77.9 billion in 2024, and it is expected to reach USD 152.0 billion by 2032, advancing at a growth rate of 8.8% during 2025–2032. The rising demand for energy-efficient solutions along with the growth in infrastructure, the escalating sales of horticulture lighting, and the increasing government initiatives toward the adoption of LED lights are the key factors driving the market. Moreover, growing urbanization, falling prices, and elevating the replacement of incandescent lights with LED lights are other factors propelling the sales of these lights.
As commercial technology is improving, more businesses are investing in updating their illumination fixtures to commercial-grade LEDs. For instance, Tim Hortons, a restaurant chain based in Toronto, Canada, installed these products across all its locations, due to technological advancements that provide a pleasant, cordial light in its restaurant settings. Because these bulbs endure for years, they require minimal maintenance as compared to old, incandescent systems.
Moreover, governments are also embracing lighting for a variety of reasons, including less use of electricity, reduced greenhouse gas emissions, and improved safety. The Dr. Pepper StarCenter in Dallas, U.S., for example, is now entirely illuminated with LEDs. The lighting upgrade cost about USD 250,000, with a return on investment (ROI) projected in 2–3 years. Thus, it illustrates the advantages of enhanced commercial technologies, i.e., reduced costs and quicker returns.
The decreasing price of lights is another major factor for the market progression. The price erosion has led to their higher penetration for several applications, including residential, commercial, and industrial lighting. Due to advancements in technologies, the production cost has reduced considerably while the operational lifespan and efficiency of smart lights have improved notably in recent years. Due to this, there has been a significant drop in the prices of lights. As per a study, the per kilolumen price of LED lams will drop from USD 0.7 to USD 0.3 by 2050. Moreover, according to the projections of the U.S. Department of Energy, with the adoption of energy-efficient solutions, the energy consumption for lighting applications in the country is expected to reduce by 40–60% by 2030 in a conservative forecast.
The luminaire category held the larger share, of 65%, in 2024. This is attributed to the high demand for luminaires, principally from newly constructed residential and commercial buildings. Furthermore, with snowballing government initiatives toward their adoption, the production of these luminaires is projected to grow in the near future. They consist of the lights that are deployed on high bays, tunnels, streets, tracks, troffers, and others.
Moreover, the surging adoption of solar LEDs in remote areas and rigorous government regulations with respect to green technology across different nations are resulting in the new installation of streetlights and track lights. Further, burgeoning smart city projects and elevating construction activities support the sales of luminaires.
The lamp category is expected to be the faster-growing during the forecast period. This is due to the rising focus on the replacement of conventional lamps, such as incandescent and fluorescent lamps, with energy-efficient LED lamps in the residential and commercial sectors across the world.
These product types are covered:
The new installation category generated the higher revenue in 2024. This can be ascribed to the high adoption of LEDs for new fixtures across the world and the increasing government initiatives toward the use of energy-efficient lighting systems, particularly in India, Indonesia, Brazil, and China.
The retrofit installation category is expected to register the higher CAGR, of 10%, during the forecast period. This can be attributed to the mushrooming replacement of incandescent and sodium-vapor lamps with LEDs in various countries such as Japan, India, China, South Korea, the U.A.E., and the U.S. Moreover, with the phasing out of incandescent bulbs in these nations, the demand for lamps for retrofit installation is rising, which fortifies the sales in this category.
Furthermore, LEDs use much less energy as compared to incandescent bulbs because diode light is highly power-efficient than filament light. With performance improvements and plummeting prices, they are affordably and effectively replacing 40, 60, 75, and 100 W incandescent bulbs on a large scale. For instance, A-lamps can easily fit into the old sockets of incandescent bulbs, due to which consumers are increasingly demanding these lamps in the residential and commercial sectors.
These installations are covered:
The indoor bifurcation held the larger share in 2024, of 55%, on account the rapid replacement of conventional lights in homes, automobiles, aircraft, ships, trains, commercial spaces, greenhouses, vertical farms, factories, and warehouses with LEDs. Additionally, automakers are increasingly integrated LEDs into their latest models to enhance fuel economy and energy efficiency. In both transportation and residential applications, the trend of smart, ambient lights continues to drive the usage of LEDs over halogen, fluorescent, and incandescent lamps.
The outdoor lighting will witness the higher CAGR over the forecast period. This is attributed to the development of infrastructure-related projects, such as airports, motorways, and public spaces. In addition, it is projected that the surging government initiatives to attain net-zero emissions by dipping energy use will drive the production of lights for outdoor applications. Thus, the demand for street lighting is expected to corner a robust growth rate in the long run. This can be mainly imputable to the increasing focus on the development of smart cities across the world, wherein the installation of streetlights would help save energy, reduce maintenance costs, control light intensity, and curb carbon emissions.
These applications are covered:
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Globally, APAC is the largest market for LEDs, accounting for 45% revenue share in 2024, and it will also witness the highest CAGR, of 10.5%. This is mainly attributed to the increasing demand for LEDs from the residential sector, primarily in countries such as China, India, and South Korea, on account of the increasing disposable income, growth in the construction of housing establishments., and the presence of a large number of companies operating in these countries.
Moreover, due to the increasing population, budding infrastructure development activities in developing countries, and rising government initiatives with a focus on energy efficiency, the demand for commercial and industrial applications is increasing, thus driving the production of LEDs in the region.
In addition, under the UJALA scheme, the Indian government has distributed 368,705,340 LED bulbs worth INR 442.18 crore. As per the government, this helps reduce energy consumption by 47,883 million kWh, indirect GHG emissions by 38,784,952 tons, and peak energy demand by 9,586 MW each year.
These regions and countries are covered:
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