According to TrendForce’s latest market research report “TrendForce 2023 Global LED Lighting Market Analysis-1H23”, the global LED lighting market value shrank to USD 61.4 billion in 2022 with a 5% YoY decline due to numerous factors. Entering 2023, the market demand will likely recover thanks to the continue energy-saving revamp projects across Europe, the US, and Japan, upcoming LED replacement peak, and rapidly rising demand for high-quality, human-centric, and smart lighting among users, along with China’s opening. That being said, manufacturers still have to reduce the high inventory level, while demand might be limited by soaring inflation. Considering the said factors, TrendForce predicts the global LED lighting market to be valued at USD 63.8 billion with a 4% growth rate (note: the lighting market covers branded and white box products starting 2H21).
In 2022, the demand for LED products featuring dimming, color tuning, and smart control systems increased particularly in the outdoor and industrial lighting sectors. TrendForce’s latest data show that the market value of global smart lighting market grew 12.9% to USD 6.9 billion in 2022.
Moving into 2023, consumer demand is expected to improve, which will prompt the smart household lighting market to recover. On one hand, products that are common in the commercial market have entered the smart household lighting sector, such as reflector lamps, downlights, and LED strips. On the other hand, the promulgation of new standards and protocols (e.g., the Matter standard) and entry of new players are estimated to boost the market value for 2023 to USD 2.4 billion.
LED Horticultural Lighting Market
TrendForce reported that the horticultural lighting market value plunged to USD 1.3 billion in 2022, a 20% YoY slump, due to numerous reasons. In the coming years, nonetheless, requirements of food safety will increase the demand for localized production and reduce pressure from supply chain costs. Moreover, climate change, loss of agricultural land, and favorable cannabis policies worldwide will together stimulate the development of controlled environment agriculture (CEA), thereby boosting LED penetration. Additionally, lighting companies have developed value-added products such as those combined with sensors and internet access. Based on the said factors, TrendForce predicts the market value of LED horticultural lighting to reach USD 1.44 billion in 2023 and jump to USD 2.45 billion in 2027 with a 2022-2027 CAGR of 11.5%.
2022-2023 Lighting Supplier Dynamics
As energy costs soared in 2022 due to the Russia–Ukraine war, which then drove up the demand for energy-saving LEDs and accelerated replacement of conventional lighting products with constant increases in LED lighting penetration. TrendForce discovered that the LED penetration rate among most suppliers already reached 85% and higher.
In the long run, energy conservation policies adopted by governments worldwide will still be the major growth momentum for lighting markets, while conventional lighting products will die out more quickly. Most suppliers are expected to focus on digital transformation for their lighting products and professional solutions creating healthier, smarter, and more convenient lighting experiences for customers. (By Christine Liu/Analyst of TrendForce Corp.)
TrendForce 2023 Global LED Lighting Market Analysis-1H23
Publication dates: February 10, 2023; July 31, 2023
Language: Traditional Chinese/English
File format: PDF and EXCEL
Number of pages: 100 (in each publication)
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