Light-emitting diodes (LEDs) are gradually taking over the global lighting market. While in 2019, almost half of all light sources in the world were LEDs, it is projected that by 2030, some 87 percent of all light sources will be LEDs. This growing adoption rate is reflected in the size of the global LED market. Sized at about 70 billion U.S. dollars in 2019, the global LED market is expected to grow to almost 100 billion U.S. dollars in 2030.
The main growth drivers for LEDs are efforts to achieve a more sustainable future and falling prices of the LED components. Governments across the globe have started implementing plans to promote environmental-friendly and energy-efficient solutions in many sectors. In the lighting sector, this means phasing out incandescent light bulbs and promoting the purchase of more energy-saving alternatives, such as LEDs.
Advantages of LEDs
LEDs are one of the most energy-efficient lighting solutions in the world. High-quality LED lamps use at least 75 percent less energy than incandescent lamps and last 25 times longer. Although a new LED lamp costs more than an incandescent lamp, due to LEDs’ energy-efficiency, switching from conventional lightbulbs to LEDs saves money in the long run.
Falling prices of LEDs contributing to growing adoption in the United States
Since 2010, the price of LEDs has fallen dramatically, allowing a wider adoption of this lighting source. Although less steeply, the price of LED lamps is projected to continue falling well over the next three decades. While one kilolumen cost some 0.7 U.S. dollars in 2017, it is expected to drop to around 0.3 U.S. dollars in 2050. The price forecasts for warm light LED lamps and cold white light LED lamps are even more optimistic, projecting a drop to 0.3 U.S. dollars per kilolumen in 2035.
It is no surprise that in the United States, LEDs already had a considerable penetration rate in the lighting market in 2017, especially in the outdoor sector. Following the global trend, the LED penetration rate is projected to increase over the next decade. In 2030, some 76 percent of all lighting sources installed in the country will be LEDs.
Description: The global solid state lighting market is forecast to grow from the total value of 20.4 billion U.S. dollars in 2018 to 32.3 billion U.S. dollars in 2024. Visible LEDs made up the biggest share of this market in 2018 at 16.6 billion U.S. dollars.
Description: The global marker for LED lighting was sized at about 76 billion U.S. dollars in 2020. It is projected that the market will grow at a compound annual growth rate (CAGR) of over 13 percent in the coming years. In 2026, the market is expected to reach the size of some 160 billion U.S. dollars.
Description: Since they use only a fifth of the electricity required by a comparable incandescent bulb, light-emitting diodes (LEDs) are currently among the most energy-efficient light sources in the world. As more and more countries are getting close to phasing out conventional bulbs, LEDs are continuing their march to the top of the market. The penetration rate of LEDs into the global lighting market was rising between 2012 and 2019 and is expected to reach a penetration of some 76 percent in 2025.
Description: The most connected streetlights – some 500,000 could be found on the streets of Miami in 2019. Paris ranked second with around 280,000 streetlights, closely followed by Madrid with some 225,000 streetlights.
Description: The market size of residential light-emitting diodes (LEDs) in North America is forecast to increase between 2019 and 2024. The market should grow from some 40 million U.S. dollars in 2019 to around 48 million U.S. dollars in 2024.
Description: The number of LED light installations in the United States is forecast to grow between 2017 and 2035, increasing from some 1.4 billion units installed in 2017 to around 7.9 billion units in 2035. Although the residential sector is expected to see the most LED light installations in 2025, it is the outdoor sector that should have the highest penetration rate of LED lights.
Description: LED lights are forecast to be gaining popularity between 2020 and 2035 in the United States, notably in outdoor applications. By 2025, LED lights should be installed in 93 percent of outdoor lighting and become the most common light source in all sectors.
Description: As of 2018, LEDs have been used in nearly 30 percent of all indoor lighting and over 50 percent of all outdoor lighting in the United States. The majority of lighting in parking garages and parking lots were using LED technology in 2018.
Description: This statistic presents a forecast of the revenue in the Smart Home segment Comfort and lighting in the United States until the year 2025. According to the Digital Market Outlook, the revenue of the Smart Home segment Comfort and lighting in the United States is expected to be 4.350,4 million U.S. dollars in 2025. An overview of all Digital Markets can be found here.
Description: The value of light-emitting diode (LED) lamps imported to the United States was growing between 2017 and 2019, peaking at some 2.2 billion U.S. dollars in 2019. In 2020, the value reached a similar level compared with 2019.
Description: Exports of light-emitting diode (LED) lamps from the United States reached their peak in 2017 when the country exported LED lamps worth some 123 million U.S. dollars. In the following years, the value was decreasing, dropping to around 92 million U.S. dollars in 2019. In 2020, the export value bounced back and surpassed 110 million U.S. dollars.
Description: The value of parts for diodes imported to the United States was growing between 2017 and 2020. While the country imported diode parts worth some 194 million U.S. dollars in 2017, their import value reached almost 320 million U.S. dollars in 2020.
Description: The value of parts for diodes exported from the United States was decreasing between 2017 and 2019, dropping to some 283 million U.S. dollars in 2019. On the other hand, the value of parts for diodes imported to the United States was growing over the same period.
3. LED price trends
Description: In both high-power and mid-power LED packages in the United States in 2018, the cost of dies accounted for over half of the total costs. While packaging made up some 37 percent of total costs in mid-power LED packages, it accounted only for around 11 percent of total costs in high-power LED packages.
Description: LEDs cost around 0.7 U.S. dollars per kilolumen in 2017 and are forecast to keep getting cheaper in the coming decades. In 2020, their price should drop to some 0.4 U.S. dollars per kilolumen and in 2050 it should drop further to around 0.3 U.S. dollars per kilolumen.
Description: The price of cool white LEDs in the United States is projected to decline between 2019 and 2035. In 2025, these LED lamps are forecast to cost approximately 0.45 U.S. dollars per kilolumen and by 2035, their price should drop to some 0.3 U.S. dollars per kilolumen.
Description: The price of warm white LEDs in the United States is forecast to decline between 2019 and 2035. In 2025, warm white LED lamps are projected to cost approximately 0.45 U.S. dollars per kilolumen and by 2035, their price should drop to some 0.3 U.S. dollars per kilolumen.
Description: Signify generated over 2.1 billion U.S. dollars in revenue from LED sales in the fiscal year of 2019. Since its spin-off from Philips, Signify has become one of the leading manufacturers of light emitting diodes (LEDs) in 2019.
Description: Signify, before May 2018 officially known as Philips Lighting, was Philips’ light division. Philips, now active in medical equipment, and Philips Lighting split up in 2016 and are now separate companies, each with their own IPO. Signify, however, is allowed to use the brand name “Philips” for their products up until 2030.
Description: Signify, before May 2018 officially known as Philips Lighting, was Philips’ light division. Philips, now active in medical equipment, and Philips Lighting split up in 2016 and are now separate companies, each with their own IPO. Signify, however, is allowed to
use the brand name “Philips” for their products up until 2030.
Description: Net sales of Acuity Brands, a commercial and industrial lighting manufacturer, peaked in the fiscal year of 2018. In the 2021 fiscal year, Acuity Brands generated net sales of almost 3.5 billion U.S. dollars.
Description: Acuity Brands reported net income of around 306.3 million U.S. dollars in the 2021 fiscal year, an increase of around 23 percent compared with the previous fiscal year. The company’s net income peaked in 2018 at a value of nearly 350 million U.S. dollars.
Description: Osram Licht generated some 3 billion euros in revenue from continuing operations in the 2020 fiscal year. Osram was spun-off from Siemens in July 2013 and in 2019, investors accepted an offer made by Austrian chip maker AMS to gain about 55 percent of shares.
Description: Munich-based Osram Licht AG reported net losses of approximately 271 million euros in 2020. Osram was spun-off from Siemens in July 2013 and became the subject of a successful takeover bid from Austrian chip maker AMS in 2019.
Description: In the fiscal year of 2021, Cree reported revenue of around 526 million U.S. dollars. This represents an increase of over 50 million U.S. dollars compared with the previous fiscal year when the company generated some 471 million U.S. dollars in revenue.
Description: This statistic shows the net income of Microchip Technology from 2014 to 2022. In 2022, Microchip Technology’s net income amounted to 1.29 billion U.S. dollars, an increase from the previous year.
Source from Statista
Disclaimer: The information set forth above is provided by Statista independently of Alibaba.com. Alibaba.com makes no representation and warranties as to the quality and reliability of the seller and products.