The outdoor LED lighting market is expected to register a CAGR of over 14.0% during the forecast period (2021 - 2026). LED technology helps offer small and efficient lighting solutions, to a diverse set of consumers, with power saving and enhanced efficiency.
- LED is energy-efficient and provides better illuminating experience than incandescent lights. Additionally, the awareness about conserving energy among the consumers is driving the adoption of LED for outdoor applications.
- The maintenance cost of LED lightings is significantly lower than that of the incandescent lights. Hence, in countries, like China and India, the governments are encouraging the adoption of LED technology for roadway and highway applications, in order to save energy and maintenance cost.
- Additionally, the demand for smart controls in street lighting systems is boosting the growth of outdoor LED lighting market. On the other hand, the high initial investment for adopting LED lightings is restricting the market.
Key Market Trends
The Roadway and Highway Segment to Show Significant Growth
- More than half of the global population now live in urban cities, and the ratio is continuously increasing per year. Moreover, in highly dense cities, this rate is even higher. Owing to rapid urbanization, major infrastructure developments, including construction of highways for connecting cities, are taking place. Hence, the demand for outdoor LED lightings is increasing.
- LED lights consume 75% less energy and last for 25 times longer than incandescent bulbs. They have the highest potential for saving energy and cost. Hence, replacing old lighting systems with LED lightings has been observed to be beneficial, due to which, the demand for new installations in the outdoor LED lighting market is significantly increasing.
- The global LED penetration has been continuously increasing. According to Goldman Sach, it is expected to cross 60%, by 2020.
- Government initiatives are also fueling the market growth, as many governments across the world are structuring regulations for encouraging LED adoption. For instance, in India, the government aims to replace 14 million street lights, across the country, with intelligent lighting control systems.
Asia-Pacific is Expected to Witness Highest Growth Rate
- Asia-Pacific is currently experiencing a tremendous shift in lighting systems. Several companies operating in the region are increasingly adopting LED lighting, as compared to its counterparts, like incandescent and LFL, for use in their manufacturing plants, owing to the improved energy-efficiency offered by LED lighting systems.
- In India, the government has implemented a series of policies and programs to support the development of the outdoor LED lighting industry, among which, the most important is the SLNP (Street Light National Program), which is an initiative to replace 21 million streetlights with LED.
- Additionally, in order to promote investments in the market, the Indian government has only imposed free tariff (basic tariff) on LED component imports, facilitating the LED products to enter the market as semi-finished products, in turn, developing the local market.
- Southeast Asia is also becoming a major export hub for Chinese LED lighting products.
- Additionally, the Japanese government’s long-term goals incorporate lighting projects and infrastructures related to the 2020 Olympics. These trends signify the growth of the outdoor LED lighting market in the region.
As many companies are engaged in innovation in advanced lighting, the market is moderately consolidated. Considering the increasing concerns about energy management, lighting companies are investing in the same, by partnering with energy management providers.
Given below is a recent development in the market:
- April 2019 - American Industrial Partners (AIP) announced the acquisition of Current, powered by General Electric, which is a startup subsidiary that offers energy management solutions for consumers. Current’s portfolio spans across LED and traditional lighting solutions, along with a wide variety of intelligent controls, sensors, and software.
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1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Demand for Cost-efficient Lights
4.2.2 Stringent Government Regulations Regarding Energy Consumption
4.2.3 Decreasing Cost of LED
4.3 Market Restraints
4.3.1 High Initial Investment
4.4 Value Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 By Installation Type
5.2 By Wattage
5.2.1 Less than 50W
5.2.2 50W to 100W
5.2.3 More than 100W
5.3 By Application
5.3.1 Highway and Roadway
5.3.3 Airport Perimeters
5.3.4 Parking Lots
5.3.5 Sports Stadiums
5.3.6 Other Applications
5.4.1 North America
188.8.131.52 United States
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
18.104.22.168 Rest of Asia-Pacific
5.4.4 Latin America
22.214.171.124 Rest of Latin America
5.4.5 Middle East & Africa
126.96.36.199 United Arab Emirates
188.8.131.52 Saudi Arabia
184.108.40.206 South Africa
220.127.116.11 Rest of Middle East & Africa
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Signify NV
6.1.2 Cooper Industries Ltd
6.1.3 General Electric Company
6.1.4 Osram Licht AG
6.1.5 Cree Inc.
6.1.6 Hubbell Incorporated
6.1.7 Astute Lighting Ltd
6.1.8 Bamford Lighting Limited
6.1.9 Dialight Corporation
6.1.10 Eaton Corporation
6.1.12 Syska Led Lights Private Limited
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.