The global LED lighting market is likely to reach $70.24 billion in the next five years, growing at a CAGR of 12.6% during a forecast period of 2013 to 2023, according to a report from P&S Market Research.
Analyzing the LED lighting market by product type, installation type, end-use application, and geography, the report looks at growth drivers, trends, and restraints. Noting that LEDs are being used for a number of indoor, outdoor, architectural, automotive, and horticultural applications, P&S Market Research says that the increasing adoption of energy-efficient lighting solutions worldwide is a primary factor in the growth of this market.
“The increased investment in infrastructure enhancement, along with continuous price erosion of LED lighting solutions is driving the demand of the LED lighting market,” the report says. “Key players operating in the LED lighting market, including Osram, Sylvania and Philips, are looking forward to further reduce the price of their LED products significantly.”
Although LEDs have key advantages over traditional lighting technologies — such as efficiency, diversity of colors, quick on/off time, frequent on/off cycling, long lifetime, and shock resistance — P&S Market Research points to several limitations.
“Thermal properties, voltage sensitivity, efficiency droop, expensive production, and costly maintenance are hindering their market growth,” the analysis says. “The development of alternate technologies along with lack of awareness related to installation costs and payback periods are the other major factors.”
According to the report, major companies operating in the global LED lighting solutions include:
· General Electric
· Osram Licht
· Philips Lighting
· Zumtobel Group
The report notes that LED lighting industry remains highly fragmented with a large number of regional and international players spread across the globe. Competition is high, prompting major companies to introduce new energy-efficient products that reduce overall energy and maintenance costs.