LED Lighting Market to Surpass USD 171.13 Billion by 2033, Driven by Green Tech and Energy Efficiency Demand

LED Lighting Market Analysis

The LED lighting market is anticipated to grow at a compound annual growth rate (CAGR) of 10.14% from 2025 to 2033, from US$ 71.74 billion in 2024 to US$ 171.13 billion in 2033. The growing need for reasonably priced and energy-efficient lighting solutions, rising environmental concerns among the populace, and supportive government initiatives to reduce emissions are some of the major factors propelling the market.

LED Lighting Market Analysis

The growing demand for energy-efficient and environmentally friendly lighting choices is driving the rapid global expansion of the LED lighting industry. Through energy-saving programs and prohibitions on incandescent lights, governments around the world are encouraging the adoption of LEDs. Longer lifespans, improved brightness, and more intelligent lighting systems are the results of technological breakthroughs, which have increased demand in the commercial, industrial, and residential sectors. The market is dominated by Asia-Pacific as a result of infrastructural development and urbanization, particularly in China and India. Opportunities are being further expanded by the integration of LEDs with IoT and smart home technologies. Cree, OSRAM, and Signify are important participants. The market is anticipated to continue growing significantly over the next ten years due to declining LED prices and growing awareness of the environmental impact.

The development of commercial infrastructure and industrial modernization are causing a major transition in the LED lighting industry. Major manufacturing countries are experiencing robust industrial growth; for instance, the United States achieved an industrial production value of USD 2,497.1 billion in 2021, while the United Kingdom recorded USD 274.87 billion in the same period. Modern manufacturing and storage facilities that need cutting-edge LED lighting solutions are in high demand due to this industrial expansion. The logistics and e-commerce sectors are especially driving this trend, as illustrated by Yum China Holdings' new Supply Chain Management Center in Shanghai's Jiading district, which spans 61,000 square meters.

Key information covered in the report

• Base Year - 2024
• Historical Period - 2021-2024
• Market Forecast - 2025-2033
• Market - US$ Billion

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Infrastructure modernization projects are changing the LED lighting market in a number of industries. The USD 9.46 million contract awarded by the Grand Rapids City Council to upgrade all of the city's street lights to LED technology demonstrates the growing investment made by municipal authorities in smart lighting systems. With 17,306 multi-unit project starts in Calgary's housing market in 2022, the construction industry is also seeing significant activity, indicating a high need for residential lighting solutions. These developments are further supported by large-scale smart infrastructure projects, such as the one initiated in Huanggang City, China, in February 2023, which focuses on reducing energy costs through advanced lighting systems.

The lighting needs of the commercial real estate industry are changing significantly due to changing workplace dynamics and energy efficiency standards. In order to satisfy modern workplace requirements, property developers are increasingly integrating smart lighting systems into new construction and remodeling projects. Government programs and building codes that support energy-efficient lighting systems are supporting this trend, and many jurisdictions provide incentives for the use of LED technology. Since retailers are upgrading their lighting systems to improve customer experiences and save operating costs, the retail industry is very active in integrating LED solutions.

LED Lighting Market Trends:

Increasing Environmental Concerns Among Individuals

Growing environmental consciousness among people and government officials is another factor propelling the expanding use of LED lighting. People are increasingly preferring sustainable lighting solutions that help reduce environmental pollution. In response, key manufacturers are introducing eco-friendly and energy-efficient lighting products. For example, Signify Malaysia introduced a new line of energy-efficient and environmentally friendly lighting products for the Malaysian market in July 2023. The Philips Solar Lighting and Ultra Efficient LED products are part of this line. Philips Ultra Efficient LED features advanced design and optics technology, consuming 60% less energy than standard LED products in its category, with a lifespan of up to 50,000 hours, offering more than 3.5 times the usage life. Additionally, the Philips Solar Lighting range includes various solar products, such as solar wall lights, solar flood lights, and solar garden or landscape lighting. Similarly, governments worldwide are making substantial investments in upgrading lighting infrastructure and installing environmentally-friendly lighting solutions. For example, in June 2023, U.S. government bodies collaborated with the Department of Energy (DOE) to enhance energy efficiency in K-12 schools nationwide, funding $178 million to support projects aimed at minimizing energy costs, reducing emissions, and developing advanced LED lighting solutions.

Rising Demand for Energy-Efficient and Cost-Saving Lighting Solutions

The market for LED lighting is expanding due to the growing need for affordable and energy-efficient lighting options around the world. LEDs save a lot of energy since they convert a larger proportion of electrical energy into light. Individuals and government authorities around the world are prioritizing energy efficiency, which encourages leading companies to adopt LED lighting solutions. Additionally, various regulatory bodies in developing nations are taking initiatives to create sustainable and energy-efficient cities, further boosting the LED lighting market. For instance, according to GSMA's estimation, China might have about 4.1 billion IoT connections by 2025, or one-third of the total worldwide. In February 2023, Signify assisted the German municipality of Eichenzell in becoming a future-proof smart city with a smart street lighting solution. Its BrightSites solution enabled Eichenzell to support next-generation IoT applications and future 5G densification. Indicate the installation of LED lighting that is controlled by the Interact City System, which enables Eichenzell to keep an eye on and regulate every light from a single dashboard. Furthermore, in January 2023, GE Lighting, a Savant company, announced the expansion of its smart home ecosystem, called Cync. With its Dynamic Effects entertainment range, Cync unveiled 16 million presets, colors, personalized light displays, music syncing on-device, and more. In the upcoming years, it is anticipated that such activities would greatly expand the market share of LED lighting.

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Key Insights on the LED Lighting Industry

Several key companies are leading the LED lighting market, including Signify Holding, Acuity Brands, Inc., and Dialight.

Building and lighting technology solutions from Acuity Brands Lighting, Inc. are extensive. Prismmatic skylights, power supplies, fluorescent and LED lighting products, high-intensity discharge solutions, lighting controls, components, and embedded and standalone light control systems.

Signify Holding specializes in IoT-based lighting products for both residential and commercial customers. The company markets its products under various brands, including Philips, Interact, WiZ, and Color Kinetics. Its product range encompasses professional lighting, indoor luminaires, outdoor luminaires, and consumer lights.

LED Lighting Market Recent Developments:

Subject to regulatory clearances, Signify Holding and Dixon Technologies (India) Ltd. announced a joint venture in March 2025. The goal of this collaboration is to provide premium lighting accessories and goods for well-known brands in the cutthroat Indian market. The joint venture will concentrate on manufacturing a broad range of creative and reasonably priced lighting solutions, all manufactured in India, such as LED bulbs, downlights, spotlights, battens, rope lights, strips, and other LED lighting accessories.

Fusion Optix expanded its portfolio to five brands spanning LED components, fixtures, and e-commerce in April 2025 when it purchased LEDdynamics and its brands Prolume and LEDSupply. With an emphasis on domestic production in the face of increased taxes on Chinese imports and uncertainties in the global supply chain, both businesses run manufacturing plants in New England. Fusion Optix's U.S.-based expertise and market reach in the LED lighting business are strengthened by this calculated decision.

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