Increasing Demand for Energy Conservation is Estimated to Drive the Market Growth
Industry: Semiconductor Electronics
Published Date: June-2023
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 287
Report ID: PMRREP33507
The worldwide solid state and other energy-efficient lighting market is expected to be worth US$ 159.2 billion in 2023. As per the Persistence Market Research report, the market is predicted to expand at a CAGR of 7% between 2023 and 2033, totaling around US$ 312.6 billion by 2033.
The global solid state and other energy-efficient lighting market was estimated to be worth US$ 152.6 billion in 2022 with an absolute dollar growth of US$ 153.4 billion.
Advancements in technology in lighting systems provide energy efficiencies comprised of benefits like light ambiance and warmth. These lighting devices emerge the aesthetic beauty of the home while a reduction in the need for an increase in product demand like artificial heating and cooling.
Initial equipment and installation are expensive as solid state and other energy efficient lighting market is considered 20 times more expensive compared to the standard luminous lights. Further, the advancements in lighting technology and mass production of further solid state and other energy-efficient lights that are estimated at low prices in the future hamper the global market impact to be quite low.
Uncertainty can be found around how Russia`s war on Ukraine has played out and impacted this year with the war`s role in the creation of global instability which might cause trouble on the inflation and continue the process further. Food and fuel inflation is considered to remain a constant economic problem where a bit high retail inflation might impact the confidence and spending level of the consumer.
Governments are thus, fighting inflation by increasing their rates of interest, the creation of new jobs might slow down and impact the economic activity and its substantial growth.
| Attribute | Details |
|---|---|
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Estimated Value (2022) |
US$ 152.6 billion |
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Projected Forecast Value (2023) |
US$ 159.2 billion |
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Projected Forecast Value (2033) |
US$ 312.6 billion |
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Growth rate |
7% CAGR |
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Forecast period |
2023 to 2033 |
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Global Market Absolute Dollar Growth (US$ million/billion) |
US$ 153.4 billion |
Solid state and other energy efficient lighting market grew a CAGR of 4.5% from 2018 to 2022, as per Persistence Market Research, a provider of market research and competitive intelligence.
Capital expenditure is said to be low where the companies are prospecting to go slow on investments, which can be held back by inflationary worries by weakening the demand. A slow growth rate and eventual rise in inflation have developed a solid state and other energy efficient lighting market has seemingly primed to enter into a recession.
Fears of new COVID outbreaks and China’s already uncertain post-pandemic path had already posed a threat to the entire world perceiving acute pain in supply chain and manufacturing disruptions this year. Moreover, voltaic financial markets with growth in trade tensions, strict regulatory environment, and pressure for mainstreaming climate change into economic decisions might amalgamate the complexity of challenges being faced till now.
The year 2023 is anticipated to be a tough year for many markets, investors, and consumers as there is always an opportunity for businesses and their leaders who can outline their path ahead with flexibility and adaptability.
Rise in Demand for Conservation of Energy
World is said to experience a boom in the leading population as this trend has considerably ingrained multiple markets where the rise in population has also resulted in huge bickering for the consumption of energy, which the world is not yet ready for it. Further, the depletion of non-renewable resources that have used energy generation has also promoted the usage of solid state energy efficient lighting systems. In turn, these factors are on the verge of projections to boost the demand for solid state and other energy efficient lighting market over the forecast period.
Implementation and Association of High Costs
Requirement of the high initial investment in solid state and other energy efficient lighting systems and solutions is needed to be installed to shift from conventional lighting setups as this has a hampering effect on the growth of the solid state energy efficient lighting market. Energy-efficient lighting companies are also focusing on the release of new and affordable solutions for overcoming the barrier and unleashing the full growth potentiality for maximizing the revenue streams.
Why is North America Emerging as an Opportunistic Market?
Presence of Key Electrical Companies in the United States Raises its Market Share
North America is considered to have a significant market share in terms of revenue generation in the forecast period, accounting for more than one-third of the global energy efficient lighting market consisting of a 42% share of the global market.
The United States is considered one of the most important countries in this region with a CAGR of 5.8% where the market holds an absolute dollar growth of US$ 21.2 billion.
The presence of leading electrical companies in this region with the development of solid state and other energy efficient lighting systems such as halogen lights has raised its demand.
Why is Europe Considered to Have an Important Position in the Market?
Rise in Sustainable Technologies Leads the United Kingdom Market
Europe is anticipated to increase at a CAGR of 8.8% during the forecast period, owing to the presence of key manufacturers, with stringent solid state and other energy efficiency rules, that has significant power consumption in industrial and residential applications.
Europe has uplifted its focus on energy efficiency and lowered on carbon footprint, leading to a significant rise in the adoption of innovation in sustainable technologies. This region is predicted to have a bright outlook over the forecast period, owing to its growth in regulations that support sustainable alternatives for attaining a zero-carbon footprint. The United Kingdom thus considerably holds a prominent portion of the market with a CAGR of 5.4% with an absolute dollar growth of US$ 3.4 billion.
Which Technology is Said to Have a Leading Position in the Market?
Solid State Lighting Technology to Have a Dominant Position in the Market
The global solid-state lighting market expands at a CAGR of 6.2% and its segmentation is mainly based on technologies like light-emitting diodes (LED), organic light-emitting diodes (OLED), and polymer light-emitting diodes (PLED).
Light-emitting diodes (LED) dominate the market with an absolute dollar value of US$ 63.4 billion which is accounted to have 42% of market revenue. Researchers have considerably mentioned that solid state lighting technology consisting of LEDs is usually used by more than 40% of the outdoor lighting sector and 50% of the indoor lighting business. Hence, accelerating the demand for solid state lighting demand over the forecasted period.
Which Application Holds an Important Position in the Market?
Automotive Lighting to Hold an Important Position
Automotive lighting helps vehicles in illuminating the vehicle path, which allows the driver in getting clear visibility of the road leading to a rise in demand for such lights holding a market share of 32.4% in this sector.
The lighting system as such, also helps other vehicle drivers and pedestrians detect the vehicle’s size, position, and direction of movement on the road. It subsequently adds aesthetic looks to both, the interior and exterior parts of the vehicle increasing its eminence of the vehicle.
Some of the prominent players in the global market are-
| Report Attribute | Details |
|---|---|
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Growth Rate |
CAGR of 7% from 2023 to 2033 |
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Market value in 2023 |
US$ 159.2 billion |
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Market value in 2033 |
US$ 312.6 billion |
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Base Year for Estimation |
2023 |
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Historical Data |
2018 to 2022 |
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Forecast Period |
2023 to 2033 |
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Quantitative Units |
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Report Coverage |
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Segments Covered |
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Regions Covered |
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Key Countries Profiled |
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Key Companies Profiled |
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Customisation Scope |
Available on Request |
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The global solid state and other energy efficient lighting market in 2033 is likely to be worth US$ 312.6 billion.
The global solid state and other energy efficient lighting market is expected to secure a 7% CAGR from 2023 to 2033.
Sales of solid state and other energy efficient lighting expanded at a CAGR of 4.5% from 2018 to 2022.
The growth share of Europe’s market for the solid state and other energy efficient lighting market is likely to secure a CAGR of 8.8%.
North America market for the global solid state and other energy efficient lighting market is likely to expand at 42%.
