The LED (Light Emitting Diode) industry has been at the forefront of lighting technology, offering energy-efficient and long-lasting solutions for a variety of applications. As of 2023, the global LED lighting market size was estimated at USD 81.48 billion, with a projected compound annual growth rate (CAGR) of 11.0% from 2023 to 2030, reaching an anticipated value of USD 168.87 billion by 2030.

Product Innovations Driving the Market

The market is witnessing a surge in product innovation, with a focus on smart lighting solutions that integrate IoT (Internet of Things), human-centric lighting, Li-Fi (Light Fidelity), and LiDAR (Light Detection and Ranging) systems. These advancements are not only enhancing the functionality of LED lighting but also driving the growth of the market by offering energy savings, improved control, and tailored lighting experiences.

LED luminaires accounted for over 54% of the market share in 2022 and are expected to maintain their dominance due to the increasing installation of new track lights and light poles as part of smart city initiatives. The LED lamp segment is also anticipated to grow at the highest CAGR during the forecast period, driven by the expanding use of LED lighting systems in the residential sector.

Applications and End-Uses

In terms of applications, the indoor segment led the market in 2022, with over 67% revenue share, due to the increasing demand for energy-efficient lighting in supermarkets, shopping malls, and retail establishments. The outdoor market is also expected to expand moderately, driven by infrastructure projects and government initiatives aimed at achieving net-zero emissions.

The commercial end-use segment dominated the market in 2022, with over 51% share, attributed to the growing need for sophisticated lighting in exhibition centers, museums, galleries, and offices. The residential market is also growing globally, with increased demand for LED floor lamps, architectural lamps, and cabinet lights.