Lighting is expected to play an important role in the growth of smart cities as it finds applications in every area such as home, work, as well as in public places. Beyond its functional role of illumination, LED lighting is proven to improve the quality of life, improve end-user experiences and services, and ensure sustainability in rapidly urbanizing global cities. According to the lighting market analysis, the population in urban areas is growing swiftly and a significant percentage of the world population is predicted to live in cities having more than 70 billion light points.
Lighting Industry Market Analysis
- The lighting industry can be segmented into Traditional lighting and LED lighting. Products with LED lighting offer relatively superior services as they are cost-effective and more efficient. This is expected to result in a direct increase in the demand for LED lighting as it continues to have a major share in the general lighting market in the coming decade. According to applications, the market can be segmented into commercial, outdoor, residential, and outdoor among others.
- According to experts, there is a decline in the ASP of chips and components which are used in manufacturing. This simultaneously reduces the initial cost of installation of LED lamps and fixtures. End-users are gradually buying lighting systems as they have become highly inexpensive and cost-effective.
Trends And Future Growth Of The Lighting Market
- The market is driven by two major trends of increasing the adoption of LED technology as well as increasing the usage of connected lighting systems also known as smart systems. Major players in the lighting industry include General Electric Lighting, Philips Lighting, OSRAM GmbH, Acuity Brands, and Axis Lighting. A decline in the manufacturing, as well as installation costs of LED devices, are fostering the installation and application of new LED lamps and fixtures.
- The U.S lighting companies are observed to have achieved a significant amount of revenue generation in 1H18, which was dominantly sourced from the U.S market. The cost of lighting systems there is expected to be borne by the end-users as a trickle-down effect of the US-China trade war as well as because of a rise in the raw material price. Further, the price-per-unit in the Japanese market is observing a steep growth curve. Factoring an unstable economy in Japan as well as the impact of the 2020 Tokyo Olympics, experts predict a rise in the lighting market of Japan.
- A growing number of households and corporate industries are making use of complex and innovative lighting systems which use traditional as well as LED lighting. Additionally, the increase in population has led to a rise in the number of households and corporate offices which is directly impacting the growth of the lighting industry in developed and developing regions of the world. Rapid urbanization across the globe is fostering the demand for new lamps and luminaires in industries, hotels, and studios.
Three major opportunities are expected to drive the revenue generation for lighting manufacturers across the globe. The demand for lighting is expected to be stimulated due to the upcoming 2020 Tokyo Olympics. The demand for the sophisticated and high-end lighting market is further expected to cause a rise as DLC V5.0 type of lighting. Finally, lighting manufacturers worldwide are expected to expand cross-industry to create business opportunities in untapped markets of Asia Pacific and Africa. Architectural smart lighting, horticultural lighting, human-centric lighting, fishing lighting, and special lighting is predicted to be introduced in these regions.