PUBLISHER: Roots Analysis | PRODUCT CODE: 1883083
PUBLISHER: Roots Analysis | PRODUCT CODE: 1883083
As per Roots Analysis, the global LED lighting market size is estimated to grow from USD 79.59 billion in the current year USD 239.6 billion by 2035, at a CAGR of 10.53% during the forecast period, till 2035.

The opportunity for LED lighting market has been distributed across the following segments:
Type of Product
Type of Installation
Type of Sales Channel
Type of Color Rendering Index
Type of Control System
Type of Technology
Type of Distribution Channel
Types of Energy Efficiency
Type of Form Factor
Area of Application
Type of End User
Company Size
Type of Business Model
By Geographical Regions
LED Lighting Market: Growth and Trends
The LED lighting market is a rapidly advancing sector focused on sustainability that is revolutionizing energy savings with its growth. As reported by Signify, the lighting industry accounts for 13% of global electricity usage. Consequently, the rising demand for LEDs is expected to lead to a global reduction in consumption levels by 8% by 2030. Furthermore, as nations and economies increasingly acknowledge the advantages of LEDs, such as reduced energy usage and cost-effectiveness, the market continues to grow. Consequently, the LED market is poised to overtake the compact fluorescent lamp (CFL) and cold cathode fluorescent lamp (CCFL) segments.
Initially, the high price point of LEDs hindered their acceptance as an economical alternative. However, their extended lifespan is offsetting the overall cost. Moreover, when compared to CFLs, LEDs are demonstrating significantly better value for money. This is further driving the demand for LED lighting. Overall, owing to factors such as cost savings, environmental benefits, and reduced production expenses, the LED lighting market is expected to grow significantly during the forecast period.
LED Lighting Market: Key Segments
Based on type of product, the global LED lighting market is segmented into lamps, with subtypes A-type and T-type and others and luminaires, with subtypes decorative, directional and downlighting. According to our estimates, currently, the luminaires segment captures the majority of the market share. This can be attributed to the widespread use of luminaires in applications such as track lighting, high bays, troffers, and street lighting.
Conversely, the LED lamps segment is expected to grow at a higher CAGR during the forecast period, due to the strong demand for LED lighting solutions in the residential market.
Based on type of installation, the global LED lighting market is segmented into retrofit and new. According to our estimates, currently, the new installation segment captures the majority of the market share. This growth is driven by the role of new installations in enhancing the aesthetic of the structures where they are implemented. Additionally, the growth in market shares can also be attributed to the increasing adoption of LED lighting across diverse end-use sectors, the rising utilization of LED bulbs and luminaires to meet net-zero emission targets, and the demand for energy-efficient products.
Based on type of sales channel, the global LED lighting market is segmented into direct, distributors, e-commerce, retail and wholesalers. According to our estimates, currently, the retail segment captures the majority of the market share. This can be attributed to the widespread presence of retail outlets across different sectors, along with the advantages associated with this option, such as high product quality, on-site validation, and immediate product availability. The established local presence of this segment leads to greater cost efficiency of the products, thereby driving market expansion.
Based on type of color rendering index (RCI), the global LED lighting market is segmented into full spectrum, high CRI and standard CRI. According to our estimates, currently, the high CRI segment captures the majority of the market share. This growth is due to its exceptional capacity to accurately render colors compared to both full spectrum and standard CRI options.
Based on type of control system, the global LED lighting market is segmented into dimmable, manual controls, sensor-enabled and smart controls. According to our estimates, currently, the smart control segment captures the majority of the market share, due to the rising demand for automation, energy efficiency, and cost reduction. Consumers are increasingly opting for solutions that seamlessly integrate into smart home systems, providing practical advantages such as remote control and the ability to automate lighting according to user preferences and schedules.
Based on type of technology, the global LED lighting market is segmented into conventional LED, organic LED, quantum dot LED and smart LED. According to our estimates, currently, the smart LED segment captures the majority of the market share, due to its connection with IoT, energy-saving features, improved security elements, and ongoing technological progress.
Designed for seamless integration with the Internet of Things, smart LEDs enable users to manage and monitor their lighting systems conveniently through voice commands or mobile devices. The energy-efficient aspect is also a significant driver of growth for this segment, as it encompasses dimming functions and motion sensors, which aid in lowering energy use.
Based on type of distribution channel, the global LED lighting market is segmented into offline and online channels. According to our estimates, currently, the offline segment captures the majority of the market share. This increase can be linked to the immediate accessibility of products for consumers who favor shopping in person. The ability to physically evaluate items and receive expert guidance in a brick-and-mortar environment are additional factors contributing to the expansion of this segment.
However, the market for online segment is expected to grow at a higher CAGR during the forecast period, due to the rising popularity of online shopping and the integration of AI technology.
Based on type of energy efficiency, the global LED lighting market is segmented into high, standard and ultra. According to our estimates, currently, the ultra-efficient segment captures the majority of the market share. This increase can be linked to its superior efficiency, compliance with regulations, a rising demand for sustainability, long-term cost benefits, and improved performance. Additionally, the growth is strongly driven by the technological advancements associated with this segment.
Based on type of form factor, the global LED lighting market is segmented into bulbs, strips, panels and fixtures. According to our estimates, currently, the LED bulbs segment captures the majority of the market share. This increase can be linked to its user-friendly nature and the fact that LED bulbs can be easily replaced with standard CFLs without the need for additional modifications. Moreover, the widespread availability of these products also contributes to their growth. The affordability and multifunctional applications of these items further enhance the leading position of this segment in the market.
Based on area of application, the global LED lighting market is segmented into automotive, backlighting, indoor, outdoor and others. According to our estimates, currently, the indoor LED market segment captures the majority of the market share. This can be linked to the significant expansion of the commercial sector, which has led to a surge in the demand for LED lighting in supermarkets, shopping malls, and retail spaces. The environmental advantages of LED lighting, such as lower heat emission and cost-effectiveness, further support this segment as the dominant application in the market.
However, the outdoor market segment is expected to grow at a higher CAGR during the forecast period, due to the increasing inflation in infrastructure-related projects that include highways, airports, and other outdoor facilities.
Based on type of end user, the global LED lighting market is segmented into commercial, public / government sector, industrial, residential and transportational. According to our estimates, currently, residential market segment captures the majority of the market share. This increase can be linked to increasing urbanization and the swift expansion of residential infrastructure, which has significantly driven up the demand for LEDs in this segment. Moreover, the contemporary designs offered by LEDs are also a key factor contributing to the expansion of residential end users, as more households are opting for modern lighting solutions.
Additionally, this sector is anticipated to sustain a high compound annual growth rate (CAGR) over the forecast duration. However, it's important to note that the commercial and other segments are projected to experience moderate growth during the upcoming forecast period.
Based on company size, the global LED lighting market is segmented into large companies and small to mid-sized enterprises. According to our estimates, currently, large firms capture the majority of the market share. This increase can be linked to the fact that large firms possess the financial resources and capabilities to invest significantly in research and development, production facilities, and marketing, allowing them to manufacture LEDs at a lower cost per unit than their smaller rivals. In addition, the LED products offered by medium and small businesses serve as cost-effective alternatives that maintain good quality. This segment is anticipated to grow by 2035 due to rising demand and improved LED options becoming available in the market
Based on business model, the global LED lighting market is segmented into B2B, B2C and B2B2C. According to our estimates, currently, the B2B segment captures the majority of the market share. This is due to the rising use of LED technology across various business sectors, including aerospace, manufacturing, healthcare, finance, and more.
In addition, the B2C model is projected to experience significant growth at a substantial CAGR throughout this forecast period, as LED lighting solutions become more user-friendly and consumers increasingly embrace LEDs for customized applications, smartphone integration, and enhanced user experience.
Based on geographical regions, the LED lighting market is segmented into North America, Europe, Asia, Latin America, Middle East and North Africa, and the rest of the world. According to our estimates, currently Asia Pacific captures the majority share of the market, due to growing use of LED lamps and fixtures in smart homes and urban areas, which is further accelerating market growth in this area. Moreover, several leading companies are implementing various business strategies, such as partnerships, acquisitions, and expansion efforts, to enhance market growth within the country.
LED Lighting Market: Research Coverage
The report on the LED lighting market features insights on various sections, including:
Key Questions Answered in this Report
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