Solid State Lighting Market Analysis and Global Forecast 2023-2033

Solid State Lighting Market Overview

The Solid State Lighting Market Size is expected to reach USD 85.23 Billion by 2033. The Solid State Lighting Market industry size accounted for USD 32.54 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 12.25% from 2023 to 2033. The Solid State Lighting (SSL) Market refers to the global industry centered around the production, distribution, and adoption of lighting technology that uses solid-state devices as light sources. Unlike traditional lighting technologies like incandescent or fluorescent lamps, SSL relies on light-emitting diodes (LEDs), organic light-emitting diodes (OLEDs), and polymer light-emitting diodes (PLEDs) to produce light.

The Solid State Lighting Market is expected to grow significantly as demand for energy-efficient and sustainable lighting solutions continues to rise globally.

Global Solid State Lighting Market Synopsis

Solid State Lighting Market Dynamics

The major factors that have impacted the growth of Solid State Lighting Market are as follows:

Drivers:

Ø  Technological Advancements

Ongoing advancements in SSL technology enhance the brightness, color quality, and longevity of lighting solutions. Technological innovations and economies of scale have significantly reduced the cost of SSL products, making them more accessible to consumers and businesses. Urbanization and the expansion of smart cities drive the need for modern lighting solutions, including SSL, for street lighting, public spaces, and infrastructure projects. The renovation and retrofitting of existing buildings with energy-efficient lighting solutions contribute to market growth. SSL products have a longer operational life, reducing the frequency of replacements and maintenance costs.

Restraint:

• Perception of High Initial Costs and Technological Complexity

While SSL products offer long-term savings, the initial cost of purchasing and installing SSL solutions can be higher compared to traditional lighting technologies. This can be a barrier for some consumers and businesses. The integration of advanced SSL technologies, such as smart lighting systems, can be complex and may require specialized knowledge and equipment. Ensuring compatibility with existing infrastructure and systems can be challenging, particularly in older buildings or retrofitting projects.

Opportunity:

⮚      Smart Lighting Solutions

The integration of SSL with Internet of Things (IoT) technologies opens up opportunities for smart lighting solutions that offer features such as remote control, automation, and enhanced functionality. The development of smart cities and infrastructure projects creates a demand for advanced lighting systems that can be controlled and monitored digitally. Opportunities exist in specialized applications such as horticultural lighting, automotive lighting, and display backlighting, where SSL technology can offer significant advantages. Developing tailored SSL solutions for niche markets and specific applications can create new revenue streams and market segments.

Solid State Lighting Market Segment Overview

By Type

Based on Type, the market is segmented based on Light Emitting Diodes, Organic Light Emitting Diodes and Polymer Light Emitting Diodes. The light-emitting diodes (LED) segment dominated the market. When an electric current passes through a light-emitting diode (LED), it emits light. Light colors differ depending on the band gaps of semiconductor materials. The specific wavelength for a given color can be changed by changing the composition of the light-emitting area. Since they started being employed as a general illumination source, LEDs have constantly increased in efficiency.

By Application

Based on Application, the market segment has been divided into Indoor Lighting, Outdoor Lighting and Specialty Lighting. The indoor lighting segment dominant the market. Indoor lighting refers to lighting inside buildings like offices, schools, supermarkets, shopping centers, hotels, sports arenas, and warehouses. The demand for indoor lighting systems is driven by LEDs’ adaptable design, high energy efficiency, and long lifespan. According to estimates, the solid-state lighting market will proliferate due to rapid expansion in the retail and hospitality sectors. The quicker adoption of LEDs in indoor lighting applications represents a significant growth opportunity for the global market.

By Vertical

Based on Vertical, the market segment has been divided into Residential, Medical, Industrial and Commercial and Others. The industrial and commercial segment dominant the market. Applications for the industrial and commercial sectors are now more diverse due to solid-state lighting. Customers can get the high brightness, long life, and dependability they need for industrial, harsh, and hazardous locations with today’s LED technology. Due to their longer lifespan, energy savings, and equal or better light characteristics that provide years of maintenance-free operation with a quantifiable return on investment, LED light sources are becoming increasingly popular in the commercial sector. The industrial and commercial LED lighting market is anticipated to grow due to factors like the need to replace traditional lighting, the high demand for affordable and energy-efficient LED lighting, and government initiatives to promote LED adoption.

Global Solid State Lighting Market Regional Analysis

Based on region, the global Solid State Lighting Market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Solid State Lighting Market followed by the Asia-Pacific and Europe regions.

Solid State Lighting North America Market

North America holds a dominant position in the Solid State Lighting Market. The North American market is mature and highly competitive, with a strong emphasis on energy efficiency and advanced lighting technologies and growth in smart lighting solutions, retrofit and renovation projects, and increasing adoption of LED technology in residential, commercial, and industrial sectors.

Solid State Lighting Asia-Pacific Market

The Asia-Pacific region has indeed emerged as the fastest-growing market for the Solid State Lighting Market industry. The Asia-Pacific region is experiencing rapid growth in the SSL market due to urbanization, infrastructure development, and rising demand for energy-efficient lighting. Rapid urbanization, government initiatives supporting energy efficiency, and increasing consumer awareness about sustainability and significant growth potential in emerging economies, large-scale infrastructure projects, and increasing investments in smart cities and smart lighting solutions.

Competitive Landscape

The global Solid State Lighting Market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.

Prominent Players:

• Cree Inc.
• Energy Focus Inc.
• General Electric Company
• Nichia Corporation
• Osram Licht AG
• Royal Philips Electronics N.V.
• Samsung Electronics Co. Ltd.
• Seoul Semiconductor Co. Ltd.
• Sharp Corporation
• Toshiba Corporation

Key Development

In November 2022, The J Series® 2835 3V G Class LEDs and XLamp® XP-G3 LEDs from Cree LED, an SGH company, are available with PhotophyllTM Select LEDs, an advanced horticulture spectrum. Manufacturers of luminaires can easily alter the blue/green/red spectral ratios of their products to meet the needs of each type of plant since Photophyll Select LEDs are the first LEDs on the market to be fully characterized in horticulture metrics.

In August 2022, EnFocusTM Power Line Controlled commercial LED lighting system was updated by Energy Focus, Inc., a leader in sustainable, energy-efficient LED lighting control systems and products for the commercial, military, maritime, and consumer markets. It is less expensive and easier to install, commission, and operate than other dimming and color-tuning systems.

Scope of the Report

Global Solid State Lighting Market, by Type

• Light Emitting Diodes
• Organic Light Emitting Diodes
• Polymer Light Emitting Diodes

Global Solid State Lighting Market, by Application

• Indoor Lighting
• Outdoor Lighting
• Specialty Lighting

Global Solid State Lighting Market, by Vertical

• Residential
• Medical
• Industrial and Commercial
• Others

Global Solid State Lighting Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: $85.23 Billion
CAGR	12.25% CAGR (2023-2033)
Base year	2022
Forecast Period	2023-2033
Historical Data	2021
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Type, Application, Vertical
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	Cree Inc., Energy Focus Inc., General Electric Company, Nichia Corporation, Osram Licht AG, Royal Philips Electronics N.V., Samsung Electronics Co. Ltd., Seoul Semiconductor Co. Ltd., Sharp Corporation and Toshiba Corporation.
Key Market Opportunities	• Smart Lighting Solutions • Innovative Applications
Key Market Drivers	• Technological Advancements • Urbanization and Infrastructure Development

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Solid State Lighting Market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Solid State Lighting Market historical market size for the year 2021, and forecast from 2023 to 2033
• Solid State Lighting Market share analysis at each product level
• Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Solid State Lighting Market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.