2021 Global LED Lighting Market Outlook and Analysis of Opportunities and Challenges

According to TrendForce’s latest report “2021 Global LED Lighting Market Report-Lighting-Level Packaging and Lighting Product Trends (1H21)”, the global LED lighting market outlook is more optimistic than previous estimates, and the global LED lighting market scale is estimated in 2021 There will be a chance to grow 5.1%. COVID-19 is spreading rapidly around the world, which has curbed the demand and consumption of LED lighting to a certain extent in the short term. In the medium and long term, there are still many uncertainties in the impact of the new crown epidemic on various industries. However, in order to alleviate the negative impact of the epidemic on the economy, governments around the world have implemented different levels of fiscal stimulus and monetary easing policies. The economy is recovering extensively, and downstream LED lighting demand is highly correlated with macroeconomic development, and lighting will benefit from this. LED lighting products are necessities for people’s production and life, and the rigid market demand still exists. During the epidemic, the demand for the home lighting market has not decreased but increased, which demonstrates this essential characteristic. In addition, lighting products are further developed to digital intelligent dimming and control lamps. It is believed that the future lighting industry will also pay more attention to the intelligent systemization of products, human-caused health lighting, and market demand for segmented applications. TrendForce estimates that it will reach US$44.3 billion in 2025. 2021 Lighting Market Key Market Trend Analysis: Smart Lighting, Human Factor Lighting, Niche Lighting.

2021 Global LED Lighting Market Outlook and Analysis of Opportunities and Challenges

1. The government’s investment in smart building lighting and the development of smart urbanization will drive the demand for the smart lighting market to increase. Under the influence of the epidemic in 2020, the smart lighting market will perform significantly better than the general LED lighting market, mainly due to the cost adjustment of smart lighting products and terminals Consumer demand for smart lighting systems continues to increase, driving the market momentum for Connected Lighting. From the perspective of application scenarios, commercial intelligent lighting combines human health requirements with intelligent lighting to improve light quality and energy-saving control. Although it is affected by the epidemic in the short term, it will show rapid growth in the long term. In the field of smart home lighting, in response to the development of the smart home market, especially in the high-end residential market, the overall market demand for smart lighting in this sector is driven. In addition, the epidemic has accelerated the penetration rate of smart lighting products. It is the market with the highest growth rate in 2020, with an annual growth rate of 27%. . In the field of outdoor smart lighting, despite its relatively small market size, its rapid growth rate is mainly attributed to the promotion of energy-saving policies and economic stimulus programs of various governments. Including the economic stimulus plan for infrastructure construction in Europe and Australia, as well as the US FAST Act and Highway Trust Fund. In addition, in response to the global boom in smart city construction, along with the development of IoT and 5G technology, TrendForce said that the smart street lamp market will officially enter the stage of high-speed replacement and development.

2. Human lighting is currently mainly reflected in the application of high color rendering lighting and healthy lighting. GE Current and Nichia have worked together to apply GE Current TriGain technology to commercial lighting to achieve high color saturation and color rendering ( CRI/R9), and will not sacrifice luminous efficiency. According to TrendForce’s survey, commercial lighting products using TriGain technology performed well in 2H20. Health lighting products have the opportunity to introduce 435nm light sources to reduce blue light hazards. In the future, there will be opportunities to expand to school education venues and improve the development of the lighting market.

3. The plant lighting LED market in the niche lighting market has become one of the fastest-growing lighting applications. Firstly, it is attributed to the acceleration of the legalization of cannabis cultivation in North America, and the new crown pneumonia epidemic has made the medical and entertainment cannabis market scale fast increase. Second, the impact of the epidemic on the food supply chain has gradually emerged, and investment in indoor planting and agriculture has once again heated up, driving the replacement of lighting equipment and increasing demand for new additions. In addition, the cost of lighting LED products has dropped significantly, including the unit price of red LEDs and medium and high-power lamp beads, which reduces the overall cost of lighting. According to TrendForce’s research, the demand for the plant lighting market will break out in 2020. Most manufacturers continue to launch new and higher-spec LED products, such as OSRAM, Samsung, Cree, Lumileds, Seoul Semiconductor, etc. This move will accelerate the replacement of traditional lighting products with LEDs. 2021 Lighting Industry Market Development Opportunities and Challenges The driving forces of the future lighting industry market mainly come from: products with higher energy efficiency, lower cost, lighter weight, smaller size, easier to install lighting devices, and more convenient wisdom control. With the development of IoT technology, smart control will become the main driving force of the future market.

In terms of health and safety, at the same time, the next generation of lighting products must have higher quality and quality (reflected by contrast, brightness, etc.), and more comfortable. Finally, looking at the revenue of lighting manufacturers, under the dual impact of the Sino-US trade conflict and COVID-19, lighting manufacturers will face a more severe market test in their lighting revenue performance in 2020. However, TrendForce Consulting observes manufacturers’ revenue and product performance, and most manufacturers continue to deepen their efforts in the professional lighting and smart lighting markets. As the demand for intelligent lighting products increases, the revenue of some companies that have deployed the market earlier will see a significant decrease in revenue in 2020.