Governments around the world have higher and higher requirements for energy saving. It is expected that the output value of the lighting LED market will opportunity to reach 8.11 billion US dollars in 2022, a year-on-year increase of 9.2%. In the next few years, the lighting LED market size will continue to grow driven by factors such as human-centric lighting (HCL), smart lighting, etc., and is expected to reach US$11.1 billion by 2026, with a compound annual growth rate from 2021 to 2026 (CAGR) was 8.4%.
Despite the continued impact of the epidemic in 2022, the popularity of vaccines and the recovery of economic activity, coupled with the rigid demand of the lighting market as a daily necessity, the global “carbon neutrality” and the growing demand in recent years, the energy-saving agenda has prompted many major countries to increase Measures such as energy efficiency and low-carbon heating achieve net-zero emissions. Lighting is the main energy consumer in buildings, accounting for 20%-30% of total building energy consumption. Driven by the upgrade of aging equipment, the penetration rate of LED will continue to increase. In addition, smart lighting can also achieve the purpose of timely energy saving.
The gradual recovery of the lighting market is clearly reflected in the 2021 vendor revenue rankings. MLS, the leading manufacturer of lighting LEDs, ranks first by revenue with a 34% revenue growth rate in 2021.
In terms of pricing, the demand in the lighting industry will gradually pick up in 2021. In the face of the demand for higher specification end-use products and the impact of rising raw materials and comprehensive operating costs, LED packaging factories will no longer adopt pricing strategies to seize additional market share and allow the lighting of LED products. Pricing stabilizes and picks up in 2021. From the perspective of product categories, the annual growth rate of 2835LED, 3030LED, and 5630LED is 2.1%-4.4%. The market price of high-power lighting LED products (above 1 watt) such as ceramic substrate LED and 7070LED has an average annual increase of 3%-6%.