LED lighting will usher in business opportunities in smart cities and energy efficiency plans

According to PR Newswire, the latest analysis of Frost & Sullivan's "2020 Global LED Lighting Market Annual Update" found that the demand for energy-saving lighting is increasing, the number of smart city projects is increasing, and the development of overall infrastructure is driving the global LED lighting market.

By 2026, the global LED lighting market is expected to grow from US$67.7 billion in 2019 to US$82 billion, with a compound annual growth rate (CAGR) of 2.8%. However, in the COVID-19 pandemic, the entire LED lighting industry may be affected by different regions due to differences in containment measures and lockdown implementation. Even if partial relief is locked in and production is resumed, it will take several years for the market to recover and reach the same level as before the crisis.

Dennis Marcell Victor, an energy and environmental research analyst at Frost & Sullivan, said: "Smart buildings will accelerate the adoption of smart lighting than any other field. The revival of cities will also provide much-needed impetus for the installation of smart lighting.", "Government subsidies, cost savings, Improving worker performance and endless LED lighting Internet of Things (IoT) applications provide a good business case for the adoption of LEDs in various applications."

Victor added: “Lighting-as-a-Service (LaaS, Lighting-as-a-Service) will gain a higher rate of adoption, introduce new business models, and promote the development of other applications such as networked lighting and facility management. This is expected to reduce consumer capital expenditures, and service providers will bear the upfront costs."

In addition, from a regional perspective, the Asia-Pacific region (APAC) is still the main growth area, which will bring in revenue of US$35.4 billion by 2026, with India and China contributing the largest revenue. Similarly, after the Asia-Pacific region, Europe and North America will make significant contributions to the market due to the development of advanced lighting applications vertically related to the health care, industrial, office and hotel industries in these two regions. During the forecast period, the growth rates of the two are 4.0% and 4.1%, respectively. Latin America will achieve the highest growth rate during the forecast period of 5.1% because it focuses on office and street lighting as part of smart city solutions.

The increasing adoption of LED lighting in the health care, automotive, industrial and office sectors has brought huge growth prospects for market participants, including:

LaaS business model: Companies need to take a pragmatic approach to monetize LaaS to increase revenue.

Automotive digital LED lights: Self-driving cars need to implement digital LED light technology to enhance safety.

Circular economy of LED lighting: Circular economy measures should start from the design stage. Designing modular, upgradeable and reusable products will help reduce the waste of used LED light sources.

UVC-LED for disinfection: UV-C lamps should be used to disinfect workplaces, medical centers and public transportation. The correct guidelines for dealing with widely used UV-C lamps should be outlined.

The latest content of the "Frost & Sullivan Energy and Environmental Research and Analysis" provided by the Frost & Sullivan Leadership Committee is the "2020 Global LED Lighting Market Annual Update". This report can help organizations identify growth opportunities for continued growth to succeed in the unpredictable future.