PUBLISHER: KBV Research | PRODUCT CODE: 1353254
PUBLISHER: KBV Research | PRODUCT CODE: 1353254
The Global Electric Lighting Equipment Market size is expected to reach $173.2 billion by 2030, rising at a market growth of 7.0% CAGR during the forecast period. In the year 2022, the market attained a volume of 466.6 million units, experiencing a growth of 4% (2019-2022).
The usage of LED lights has increased across various commercial sectors due to the government's encouragement of investments in energy-efficient lighting technologies through various laws. Therefore, the commercial segment would register approximately 1/5th share in the market by 2030. In addition, 18 to 40 percent of the electricity utilized in commercial buildings is consumed by illumination, compared to just a few in houses. The market is growing due to the increased interest in energy conservation. Furthermore, LED lighting is being increasingly used in countries all over the world. For instance, the 250,000 streetlights in New York City were upgraded to energy-efficient LEDs, and the project has been finished by 2017.
The major strategies followed by the market participants are Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. In June, 2022, Signify acquired Fluence to solidify Signify's global agriculture lighting growth platform and strengthened its position in the attractive North American horticultural lighting market. Additionally, in June, 2021, Acuity Brands, Inc. signed an agreement to purchase North American Digital Systems (DS) business from ams OSRAM to enable the company to expand its advanced LED driver portfolio.
Based on the Analysis presented in the KBV Cardinal matrix; Eaton Corporation PLC is the forerunner in the Market. In June, 2021, Eaton completed the acquisition of Cobham Mission Systems to expand its Aerospace fuel systems offerings. Companies such as Toshiba Corporation, Signify N.V., Hubbell Incorporated are some of the key innovators in the Market.
Market Growth Factors
Rising Demand for Energy-Efficient Lighting
Energy-efficient lighting involves utilizing fewer lights by replacing high-power-consumption lights such as incandescent, high-discharge, etc. This technique is also utilized in GPRS, GSM, and SCADA, among other control technologies. Additionally, it is substituting low-wattage equipment like electronic ballasts and fixtures for high-wattage lighting accessories. Energy-efficient lighting replaces traditional lighting (incandescent bulbs) with fluorescent, CFL, and LED lighting. This market may open new growth prospects due to the growing usage of LEDs in the automotive sector. The development of lighting technology increases energy efficiency and offers extra advantages like ambient lighting, ventilation, and warmth.
Growing Adoption of Smart Lighting Solutions
The ability of lights to link with IoT devices and generate a range of ambient lighting using only smartphones or tablets has expanded their popularity and demand in both commercial and residential spaces. They can also be programmed to turn on and off and track their energy consumption. The platform connection with Google Assistant, Amazon's Alexa, Apple's Siri, or Microsoft's Cortana can also provide voice control of smart lights. Therefore, it is anticipated that the demand for LED-based smart lights will increase throughout the projected period due to various government measures to encourage their use.
Market Restraining Factors
Challenges in Establishing Newer Manufacturing Hubs
Due to stringent government policies, which include rules and regulations relating to environmental measures, investors are having difficulty setting up newer light industrial centers in several countries. Before establishing a factory, investors or manufacturers encounter several other obstacles, including high capital costs, high investments in the R&D sector, inefficient raw material supply, inefficient logistics, and a lack of sophisticated manufacturing equipment. If there is a lack of skilled labor or a problem in recruiting and training employees, it can hinder the market's production capacity and overall growth. Hence, all of these elements may hamper the growth of the market in the coming years.
By type, the market is classified into general lighting, automotive lighting, and back lighting. In 2022, the general lighting segment held the highest revenue share in the market. General lighting is divided into LED and traditional Lighting according to product segmentation. LED lighting will experience significant adoption during the anticipated period. Traditional lighting sources, such as CFLs, LFLs, and HID lights, have historically been employed in all application areas due to their low cost and ease of installation and will also be used in upcoming years.
Sales Channel Outlook
Based on the sales channel, the market is categorized into online, and offline. In 2022, the online segment acquired a substantial revenue share in the market. The online platform enables manufacturers and retailers of lighting equipment to connect with a global audience without the limitations of physical stores. Sales and brand awareness may rise as a result of this enhanced reach. Online shopping offers consumers the convenience of browsing and purchasing lighting products from the comfort of their homes. This convenience can encourage more people to investigate and buy electric lighting equipment, particularly those without access to physical stores.
On the basis of application, the market is divided into residential, commercial and others. In 2022, the residential segment dominated the market with maximum revenue share. Future development of energy-efficient lighting with sophisticated power management systems, which reduce standby power usage, and environmentally friendly manufacturing processes are also potential for makers of electric lighting equipment. In this market, these factors combined to create a significant demand for illumination in the residential segment.
Region wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific region led the market by generating the highest revenue share. The growth of the electric lighting equipment market in the Asia Pacific region is influenced by many variables. These include the rising demand for better and more effective lighting solutions, the abundance of LED package and chip companies, and the quick urbanization of nations like India, China, and Japan.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Hubbell Incorporated, Eaton Corporation PLC, Stanley Electric Co. Ltd., Acuity Brands Lighting, Inc., ams-OSRAM AG, Savant Systems, Inc., Toshiba Corporation, Nichia Corporation, Everlight Electronics Co., Ltd., and Signify N.V.
Recent Strategies Deployed in Electric Lighting Equipment Market
Partnerships, Collaboration and Agreements:
Jan-2023: Acuity Brands Lighting, Inc., a subsidiary of Acuity Brands, Inc, entered into an agreement with Biological Innovations and Optimization Systems, LLC, an innovator in the biological application of LED lighting for people and plants. The company would join the BIOS ILLUMINATED™ partnership program. The partnership would enable the company to sell its certain human-centric LED lighting components using the BIOS® trademark for marketing and promoting these lighting fixtures that include BIOS SkyBlue technology.
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.
Acquisitions and Merger:
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.
Jul-2022: Eaton acquired a 50% stake in the circuit breaker business of Jiangsu Huineng Electric Co., Ltd. (Huineng), which manufactures and markets low-voltage circuit breakers in China. The acquisition would enable the company to capitalize on opportunities in high-growth market segments.
Jul-2021: Signify acquired Telensa Holdings Ltd, a company specializing in control systems and wireless monitoring for smart cities. Through this acquisition, Signify would add the TALQ-compliant and narrow-band solution to its advanced, open, and secured systems. The addition would allow Signify to service a wider range of customers, by making smart cities affordable to cities using the unlicensed radio space.
Jun-2021: Acuity Brands, Inc. signed an agreement to purchase North American Digital Systems (DS) business from ams OSRAM. The acquisition would enable the company to expand its advanced LED driver portfolio. Additionally, it would create more opportunities for its employees, customers, and business partners.
Jun-2021: Eaton completed the acquisition of Cobham Mission Systems, a leading manufacturer of air-to-air refueling systems. The business has a workforce of approximately 2,000 people and manufacturing facilities in the United States and the United Kingdom. With this acquisition, the company would expand its Aerospace fuel systems offerings.
Mar-2021: Eaton today took over Tripp Lite, a manufacturer of power protection and connecting electrical devices. Under this acquisition, the addition of Tripp Lite's complementary product portfolio would advance the breadth of its edge computing and distributed IT product suite and broaden its single-phase UPS business.
Market Segments covered in the Report:
By Type (Volume, Million Units, USD Million, 2019-2030)
By Sales Channel (Volume, Million Units, USD Million, 2019-2030)
By Application (Volume, Million Units, USD Million, 2019-2030)
By Geography (Volume, Million Units, USD Million, 2019-2030)
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