The U.S. Department of Energy has enacted the appliance/lighting efficiency standards under its Energy Independence and Security Act of 2007 (EISA) to steer the country toward greater energy security and independence. The EISA encourages the adoption of light emitting diodes (LEDs) to reduce energy consumption by around 25%. Such regulations, which aim at curtailing energy consumption, are expected to augment the adoption of high-power LEDs in the forthcoming years. In comparison to conventional lights, these lights work for longer hours at lower maintenance costs.
Moreover, the upcoming sports events, such as the 2022 Winter Olympics, 2023 ICC Cricket World Cup, and 2022 FIFA World Cup, will also help the high-power LED market to grow at a CAGR of 5.3% during the forecast period (2019–2024). According to P&S Intelligence, the market was valued at $12,647.2 million in 2018, and it will generate $17,581.5 million revenue by 2024. Stadiums and other sports venues are deploying LED-based floodlights and other lighting systems, due to their high durability and energy efficiency.
High power LED lights can be used in automotive, general lighting, ultraviolet (UV) LEDs, backlighting, signs and signals, infrared emitter, and camera flash lighting applications. In the preceding years, the maximum quantity of high-power LED lights were used for general lighting applications due to the increasing deployment of downlights, spotlights, area lights, tunnel lights, and industrial lights. In the coming years, a considerable quantity of high-power LED lights will be used in backlighting applications such as portable appliances, gaming, and channel letter lighting.
The wattage segment of the high-power LED market is categorized into >10 W, 5–10 W, 3–4.9 W, and 1–2.9 W. Among these, the 3–4.9 W category generated the highest revenue in 2018, due to the large-scale adoption of 3–4.9 W high-power LED lights in sign and signal, general lighting, and automotive applications. Additionally, the increasing installation of these lights in outdoor and indoor lighting systems in residential, commercial, and industrial structures will fuel the dominance of this category during the forecast period.
At present, leading manufacturers of high-power LED lights of varying wattage are Lumileds Holding B.V., Nichia Corporation, and Osram Licht AG. Nowadays, these companies are focusing on product launches to encourage the adoption of their LED lighting systems. For example, in May 2019, Lumileds Holding B.V. launched the LUXEON COB with CrispWhite technology and the LUXEON COB Core Range, which are two new additions to its LUXEON chip on board (COB) LED family. These new products can deliver a minimum of 95 color rendering index (CRI) for retail and indoor lighting applications.
Geographically, the Asia-Pacific (APAC) region accounted for the largest share in the high-power LED market in 2018, wherein China, Japan, and India, were the prominent contributors. The dominance of APAC can be ascribed to the increasing adoption of energy-saving and eco-friendly lights in roads, buildings, and railways. Additionally, the surging number of smart city projects in these countries will also drive the demand for high-power LEDs in the region. For instance, the Smart City Mission launched by the Government of India aims to promote inclusive and sustainable cities that provide core infrastructure and deploy ‘Smart’ solutions.
Thus, the surging government focus on energy conservation and upcoming sports events will facilitate the deployment of high-power LED lighting systems in the foreseeable future.
Till mid-January 2021, the Indian government had distributed more than 366 million light-emitting diode (LED) lights across the country under its Unnat Jyoti by Affordable LEDs for All (UJALA) scheme. Under the same scheme, the government had also replaced 11 million conventional streetlights with LEDs till the beginning of 2021. Such measures are being taken around the world owing to the rising environmental concerns and rapid depletion of fossil fuel reserves and the fact that LEDs help a lot in this regard.
P&S Intelligence says that due to such government initiatives, the high-power LED market, which stood at $12,647.2 million in 2018, will display a CAGR of 5.3% during 2019–2024 (forecast period), to reach $17,581.5 million by 2024. Compared to an incandescent bulb of a similar power rating, an LED uses 75% less energy and lasts 25% longer, as per the U.S. Department of Energy (DoE). Energy conservation means a weaker load on power plants, most of which are still fueled by coal, natural gas, and crude oil. This will ultimately help in cutting down on the usage of such fossil fuels, as well as reduce the emission of greenhouse gases (GHG).
Read Full Report: High Power LED Market Revenue Estimation and Growth Forecast Report
High-power LEDs are used for automotive, general lighting, signs & signals, camera flash lighting, backlighting, ultraviolet (UV) LEDs, and infrared emitters. Among these, they are being the most-extensively used for general lighting purposes, including as downlights, tunnel lights, area lights, spotlights, and industrial lights. In the coming years, the demand for such products will increase at a high rate for backlighting purposes, due to the increasing sales of portable appliances and videogame consoles. Similarly, the demand for these lights in the automotive sector, for a number of interior and exterior applications, is growing.
The most-prominent high-power LED market trend presently is the adoption of smart LED lights. Such products are more energy-efficient, and they can be remotely controlled from anywhere, via a tablet or smartphone, as they are connected to the internet. In addition, such lights have advanced sensors for motion detection, with which the lights automatically switch on and off depending on the presence or absence of people in an area. Another feature that has been incorporated in smart high-power LEDs is color change as per the occasion and mood.
In the coming years, such lighting is expected to be installed in large numbers in stadia that host football, cricket, basketball, hockey, and lawn tennis matches. With the growth of the live entertainment sector, the number of sports events and the arenas that host them is rising. Numerous stadia are also being specially constructed for upcoming sporting extravaganzas, such as Winter Olympics 2022, Olympic Games 2020 (rescheduled to 2021), and ICC Cricket World Cup 2023. In an era of the rising energy costs, air pollution, and incidence of respiratory diseases and depleting fossil fuel resources, high-power LEDs will be used here.
During 2014–2018 (historical period), the dominating share in the high-power LED market was held by the Asia-Pacific (APAC) region. This is credited to the rapidly rising adoption of such products in Japan, China, and India, which happen to be some of the most-polluted countries in the world. These lights are finding high-volume installation inside buildings, on roads, and along the railway network. With the expansion of the civic infrastructure of these countries to cater to the burgeoning population, the demand for high-power LEDs will keep on increasing.
Hence, with governments taking concrete steps to reduce energy consumption, the installation of high-power LED lights will gather more pace.
The research offers historical market size of the Global High Power LED market for the period 2014–2018 and market forecast for the period 2019–2024.
Global High Power LED Market Segmentation
Market Segmentation by Wattage
- 1–2.9 W
- 3–4.9 W
- 5–10 W
- >10 W
Market Segmentation by Application
- General Lighting
- Automotive
- Signs & Signals
- Backlighting
- Others (Including Camera Flash Lighting, Infrared Emitter, and UV LEDs)
Market Segmentation by Geography
- North America High Power LED Market
- By wattage
- By application
- By country – U.S. and Canada
- Europe High Power LED market
- By wattage
- By application
- By country – U.K., Germany, France, Italy, Russia, Spain, The Netherlands, and Rest of Europe
- Asia-Pacific (APAC) High Power LED market
- By wattage
- By application
- By country – China, India, Japan, South Korea, Australia, Indonesia, Thailand, Malaysia, and Rest of APAC
- Latin America (LATAM) High Power LED market
- By wattage
- By application
- By country – Brazil, Mexico, Argentina, Colombia, and Rest of LATAM
- Middle East & Africa (MEA) High Power LED market
- By wattage
- By application
- By country – Saudi Arabia, South Africa, U.A.E., Nigeria, Turkey, Qatar, and Rest of MEA
