The LED market serves as one of the booming areas, as it is growing rapidly with utmost technological upgradation, government initiatives and economies of scale. Moreover, it has also led to a decrease in the prices of LED lighting along with an increase in consumption.
Dramatic Price Decline in LED Lighting
As we move further to trends in the pricing, the cost of LED lighting is falling considerably steeply. Although, it is projected to keep diminishing over the coming three decades. As of now, in 2022, the global lighting industry was valuated at 72.12 billion USD. If we track the prices of the LED market, the prices have dropped 15 times as the volume sold has increased from 2010 to 2019. As per the data collected by LEDinside, the average value of 60-watt equivalent LED products (specifically street prices of LED bulbs) has fallen from USD 45-40 in January 2011 to USD 10 in July 2018. Due to this and several other causes such as government initiatives taken to promote LED consumption and efficiency of LED, the LED lighting industry attracted numerous firms to enter. Moreover, the technological innovations helped in reducing the production cost as well as enhancing the efficiency and lifespan of LEDs at the same time. This encouraged fierce competition in the LED market leading to a dramatic price decline in the past few years. In case you're still wondering how the calculation of the reduction in prices are done, you can divide the US cost of an LED light per kilolumen by the number of LED lights sold measured as a percentage of global lights sold.
LED Market Growth
According to statistics, the LED market size was valued at USD 10.55 Billion in 2022 and is estimated to reach USD 24.57 Billion by 2031 alongside the CAGR of 9.85% during the forecast period. Furthermore, by 2024 the market size is assessed to reach USD 12.73 Billion and expected to reach further till USD 20.37 Billion by 2029. Majorly, the progress of the LED market is credited to the decline in the cost of the products, growing need for energy-efficient products, and government regulations. Besides, the high efficiency of LEDs and directional nature are creating opportunities to substantial increase in industrial adoption. R&D investments and technological upliftment are expected to offer prosperous opportunities for the market players.
Competitive Strategies in the U.S. LED Lighting Market
Some of the key players in the industry are Signlight LED, Krut LED, Signify Holding (Philips lighting), OsRam Licht AG, Acuity Brands Inc, Nichia Corporation, Hubbell Incorporated, and Emerson Electric Co. Some of these firms are using numerous marketing strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launch to boost their market shares. For example, Signlight LED has unveiled its latest lighting solutions with the launch of Rapid Lamp Gen 2 and 3. The Gen 2 and 3 models boasts improved energy efficiency and enhanced brightness, making it ideal for commercial lighting spaces specially in business signage. Both models are designed to meet diverse lighting needs, offering sustainable and innovative options for modern users. There is considerably higher amount of competitive landscape when it comes to LED lighting market especially in USA, as majority of the commercial as well as residential population are LED lighting consumers. Which in turn led to more companies entering the market and enhanced competition.
If summarized, the overall growth and upliftment of LED market is applaudable in a short span of time, along with the huge reduction in its prices. The major highlighted causes can be classified as decreasing costs due to technological upgradation and economies of scale, astounding growth statistics and the enhanced competitive landscape present in the field.
