PUBLISHER: KBV Research | PRODUCT CODE: 1101808
PUBLISHER: KBV Research | PRODUCT CODE: 1101808
The Global Energy Efficient Lighting Market size is expected to reach $74 billion by 2028, rising at a market growth of 8.4% CAGR during the forecast period.
Light quality and quantity have an impact on human health, comfort, safety, and productivity, as well as the economy. Many countries have spent a significant portion of their electrical budget on lighting. Many developing and developed nations have been switching to energy efficient lighting, which is the most cost-effective and dependable form of energy conservation, in order to achieve efficient use of electricity. In the field of lighting, well-known technologies have been used to optimize existing controls and lighting equipment in order to reduce energy usage while improving lighting quality.
The energy efficient lighting market has also grown because of the growing government initiatives to implement energy-saving infrastructure in various countries. For instance, in 2018, the Indian government launched the Gram Swaraj Abhiyan (GSA), which aims to promote social peace by informing rural people about various government welfare schemes and initiatives. Under the UJALA initiative, 21,058 Indian villages with a considerable number of impoverished households were able to purchase LED lights at a reduced price as part of GSA. LED bulbs provided houses with energy-efficient, cost-effective lighting that produced more lumens than incandescent lamps.
Simultaneously, the LED Street Lighting National Program has increased people's productivity at night and made roadways safer for walkers and cars by reducing dark areas and increasing brightness. LED streetlight installation saves up to 50% on electricity expenditures while assuring 95 percent streetlight uptime in states where it has been implemented. Because these lights are programmed, they turn on and off at sunrise and dusk, saving energy use. With the help of CCMS, utilities can also track and fix any defects remotely. LED streetlights have illuminated 3, 00,000 km of roadways in India in the last five years, ensuring public safety and energy efficiency.
During the coronavirus pandemic, however, the medical industry's need for UV LED skyrocketed. Furthermore, market participants invested in the research and development of smart lighting systems as a result of new government initiatives around the world. As a result, by the end of 2021, the LED market was predicted to gain traction. Furthermore, some energy efficient lighting enterprises, such as Advanced Lighting Technologies, are announcing their strategic plans to assist society during the COVID-19 pandemic. Advanced Lighting Technologies, for example, claimed in August 2020 that it is following government rules for functioning during a pandemic and that it is fully operational for supplying lighting goods to customers, projects, and infrastructure development. These important elements could lead to investment opportunities in the energy-efficient lighting business on a worldwide scale.
Market Growth Factors
Involvement of Government and Corporations
The energy efficient lighting sector is booming, owing to the rising demand for lighting that is both efficient and long-lasting, as well as the ability to save energy. Furthermore, different government initiatives to promote the use of LEDs for increased efficiency would drive the market for energy efficient lighting forward. According to the US Department of Energy (DOE), nearly 75% of energy efficient lighting shipping in 2020 will be towards LEDs. Governments all over the world, particularly in growing countries like China, Indonesia, and India, are focusing on infrastructure development, including the alteration of existing structures, and as a result, demand for LED solutions has risen in recent years.
Rise of Environmental Consciousness
The world is witnessing a tremendous population increase, which has had a significant impact on a number of businesses. This growing population has resulted in a massive increase in energy demand, which the world is not yet prepared for. Modern energy efficient lighting solutions such as modern LED bulbs are not only energy efficient but also incredibly durable and long-lasting. People, also, are becoming mindful of the amount of energy they are consuming and the waste they are generating. They are increasingly adopting more energy efficient solutions, be it electric cars, using public transport, or implementing energy efficient lighting solutions.
Market Restraining Factors
Light Pollution Caused by Widespread Implementation of LED Lights
People all across the world are converting to LED lights to save energy and money, but they may be exacerbating another issue. For decades, light pollution has been a rising issue, and the recent advent of LED (light-emitting diode) bulbs has significantly increased the quantity of light emanating from cities. For the past four years, the amount of artificial light coming from Earth's surface at night has increased by 2% in radiance and extent every year, owing to the rapid adoption of brilliant LEDs and development. It's not only that light pollution, particularly the blue light emitted by LED lighting, makes stargazing difficult.
Based on Type, the market is segmented into Light Emitting Diodes (LED), Linear Fluorescent Lamps (LFL), High-Intensity Discharge Lamps (HID) and Others. The linear fluorescent lamps segment garnered a substantial revenue share in the energy efficient lighting market in 2021. Fluorescent lamps are a form of gas-charged luminaire that produces light via a chemical reaction in which gases and mercury vapor mix to produce UV light inside a glass tube. Fluorescent lights have a number of benefits over older lighting technologies such as incandescent.
Based on Application, the market is segmented into Commercial, Industrial, and Home. The commercial segment acquired the highest revenue share in the energy efficient lighting market in 2021. LED adoption in commercial sectors is high since they are very energy efficient and help save costs. Furthermore, major manufacturers in the market offer a choice of energy-efficient lighting solutions for commercial usage based on their intended usage.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. Europe acquired the highest revenue share in the energy efficient lighting market in 2021. Due to the huge output of energy-efficient lamps, the region is regarded as the most lucrative market for energy-efficient lights. The presence of major manufacturers, tight energy efficiency rules and significant power consumption in industrial and residential applications are all contributing factors.
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; ABB Group and Schneider Electric SE are the forerunners in the Energy Efficient Lighting Market. Companies such as Toshiba Corporation, Signify N.V., Savant Systems, Inc. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include ams-OSRAM AG, Signify N.V., Savant Systems, Inc., Toshiba Corporation, ABB Group, Schneider Electric SE, Advanced Lighting Technologies Australia, Inc., Nichia Corporation, Bridgelux, Inc., and Digital Lumens, Inc.
Recent Strategies Deployed in Energy Efficient Lighting Market
Partnerships, Collaborations and Agreements:
Apr-2022: ABB Group formed a partnership with Samsung Electronics, a multinational consumer electronics producer. Under the partnership, both companies aimed to increase Samsung SmartThings integration into more homes and buildings. Samsung has created an ecosystem of smart appliances with SmartThings and has made homes smarter and more efficient.
Dec-2021: Bridgelux entered into an agreement with GE Lighting, a Savant Company, for its Potassium Fluorosilicate (PFS) technology would enable Bridgelux to bring its F90 technology to a broad variety of consumer lighting solutions. Under the agreement, Bridgelux aimed to expand from commercial to residential applications for F90, its popular CRI 90 product. After the agreement, popular lamp types like A lamps, BR, MR, and Candelabra were powered by F90 technology.
Nov-2021: Schneider Electric entered into a partnership with GreenYellow, a major international player in decentralized solar power generation and energy efficiency. Under the partnership, both companies aimed to provide turnkey, fully financed energy efficiency programs to large international corporations. Under the partnership, Schneider Electric found support for the growth of additional solutions focused on enhancing energy efficiency for the digital transformation of industrial and building applications.
Oct-2021: Savant Systems formed a partnership with True Value Company, an American wholesaler with over 4,500 independent retail locations worldwide. Under the partnership, True Value became the only national hardware channel distributor for all GE-branded lightbulbs. True Value also agreed to offer its customers exclusive warehouse access to the rising CYNC family of whole-home automation products. Previously known as C by GE, CYNC is a premium, GE-branded line of smart home products.
Sep-2021: Schneider Electric teamed up with Alfa Laval, a company involved in the production of specialized products and solutions for heavy industry. Under the collaboration, both companies digitized and analyzed data to enhance operational efficiency. The two companies utilized near real-time energy consumption data across sites, countries, and regions to detect and determine energy efficiency projects.
Jan-2021: Signify teamed up with Honeywell, an American publicly traded, multinational conglomerate corporation headquartered in Charlotte, North Carolina. Under the collaboration, both companies aimed to enhance the occupant experience, concentrating on productivity and well-being, and decreasing energy consumption. The collaboration led to the integration of Signify's Interact connected lighting system and software, and its UV-C disinfection lighting, with Honeywell's building management systems and the Forge enterprise performance management platform.
Dec-2020: Schneider Electric formed a partnership with STMicroelectronics, a multinational electronics and semiconductors manufacturer. STMicroelectronics partnered with Schneider Electric to support its goal to reach carbon neutrality by 2027. Under the partnership, Schneider Electric assisted ST in its actions to lower its global environmental footprint. Additionally, under the partnership, both companies increased their cooperation to devise additional joint products, technologies, and solutions focused on energy efficiency improvement, supporting digital transformation in buildings, data centers, industrial applications, and infrastructure.
Product Launches and Product Expansions:
May-2022: Osram launched the OSLON Optimal family of LEDs, based on the latest ams Osram 1mm2 chip for horticulture lighting. The products provide an extraordinary mixture of high efficiency, reliable performance, and great value. The new OSLON Optimal LEDs are available at launch in Hyper Red (660 nm) and Far Red (730 nm) colors. Deep Blue and Horti White versions will be made available in Q3 2022. The combination of colors and white offers fixture manufacturers the adaptability to solve the spectral requirements of any horticulture application.
Apr-2022: Bridgelux launched F90 COBs, an LED product. F90 COBs were made available in a broad variety of Light-Emitting Surfaces (LES) from 8mm to 22mm in diameter with effectiveness ranging up to 190 lumens/watt. This showed a 20% improvement from the previous generation Gen8 CRI 90 COBS and a 5% improvement on Gen8 CRI 80.
Apr-2022: Nichia launched the Hortisolis Series of white LED. The product incorporates only the light required for plant growth in one package through the delicate combination of phosphors. Hortisolis makes it feasible to improve production efficiency per area of the vertical farm while offering a decent working environment within the sealed environments.
Feb-2022: Digital Lumens expanded its RLE and CLE luminaire product lines by integrating the Lightelligence Port into it. The Lightelligence Port is a modular solution that enables luminaires to go beyond illumination by adding switchable Lightelligence Sensing and Communications Modules. These sensors collect crucial information about a facility by metering key equipment, tracking environmental conditions, monitoring assets, and much more.
Sep-2021: Signify released the first Philips LED A-class bulbs that fulfill the more strict EU Ecodesign and Energy labeling regulations that came into effect on September 1, 2021. The new Philips LED bulbs are more long-lasting and offer consumers a smart investment for both the planet and their wallets. The new Philips LED A-class bulbs are the brand's most energy-efficient lamps in this shape.
Jun-2021: Savant Systems launched CYNC Indoor Smart Camera, and CYNC Outdoor Smart Plug, its new mobile CYNC apps. The apps were made available to consumers to offer them more smart home solutions for the indoors and outdoors to make a whole home-connected experience. The CYNC platform, powered by the Savant app, consists of enhanced personalization and seamless control of all past and present C by GE products, as well as present and future CYNC products.
Apr-2021-Apr Savant Systems launched sun filled LED bulbs, bulbs that do not emit the invisible blue spectrum peak that can disturb the body's circadian rhythm. The bulbs help consumers sustain their circadian rhythm, the body's natural sleep-wake cycle. The bulbs also improve the appearance of objects.
Sep-2020: ABB launched Naveo Pro, the latest monitoring system from ABB. The system provides a transparent and proactive way to install, track and sustain emergency lighting systems from a mobile device. Naveo Pro system enables customers to set up, maintain and fully control their whole emergency lighting installation with a new mobile app. This offers a real-time outline of all systems, saving time, allowing improved maintenance planning, and enhancing building safety.
Sep-2020: Osram expanded its automotive LED portfolio by releasing a new generation of 1 to 4-chip versions in the Oslon Compact PL product family. The company also declared settlement with its contract manufacturer Lextar. The latest generation of the Oslon Compact PL products features ceramic components with an electrically insulated pad that simplifies dissipating heat from the package. The design allows a higher current to enable the 1-chip version to reach an outstanding brightness value of 395 lumens at 1A with a chip area of 1mm².
Acquisitions and Mergers:
Jun-2022: Signify acquired Fluence, a company that makes lighting solutions for controlled environment commercial crop production. Signify acquired the company from OSRAM. The acquisition solidified Signify's global agriculture lighting growth platform and strengthened its position in the attractive North American horticultural lighting market.
Feb-2022: Schneider Electric acquired EnergySage, a company developing sustainable energy solutions. Schneider Electric aimed to accelerate a shared vision for changing the clean energy market with the acquisition. The acquisition offered EnergySage the resources to accelerate the company's growth and product innovation.
Jul-2020: Savant Systems acquired GE Lighting, a company that develops lights for the future. Savant Systems acquired GE Lighting from GE. With this acquisition, the Savant showed its commitment to innovation in the lamp space. Savant's expertise in home automation helped GE Lighting accelerate the delivery of bold smart home innovation at retail.
Mar-2020: ABB completed the acquisition of Cylon Controls, a company that offers building automation and HVAC control solutions, delivering operational efficiency, energy, and comfort solutions for commercial and retail buildings, schools, and healthcare facilities. With this acquisition, ABB expanded its portfolio of solutions for the commercial buildings segment, with a special emphasis on providing innovations in energy optimization and comfort.
Market Segments covered in the Report:
Unique Offerings from KBV Research
List of Figures