Global artificial lights market is primarily driven by increasing construction and infrastructure development activities across both developed and developing economies worldwide. Artificial lights such as LED lights, CFL lights, LFL lights, tube lights, etc. have gained widespread prominence in both commercial and residential segments owing to their efficiency, longer lifespan, compact design, cost-effectiveness, and environment-friendly nature compared to incandescent lights.
Artificial lights market is estimated to be valued at USD 99.89 Bn in 2024 and is expected to reach USD 123.69 Bn by 2031. It is projected to grow at a compound annual growth rate (CAGR) of 3.1% from 2024 to 2031.
Key Takeaways
Key players: Key players operating in the artificial lights market are Philips Lighting, OSRAM Licht, GE Lighting, Acuity Brands, Eaton, CREE, Panasonic, Toshiba, Sharp, Yankon Lighting, Opple Lighting, Hubbell, Zumtobel Group, NVC Lighting, and FSL.
Key opportunities: Increasing investments by governments worldwide in smart city projects are also augmenting the demand for energy-efficient lighting solutions such as LED lights and solar lights. Rapid urbanization accompanied with growing consumer preference towards sustainable lighting is further creating new business opportunities for artificial lights manufacturers.
Global expansion: Leading artificial lights companies are rapidly expanding their presence across emerging markets of Asia Pacific and Latin America through strategic acquisitions, partnerships, and by investing in research and development to develop innovative product offerings catering to local customer requirements.
Market drivers
The Artificial Lights Market is expected to grow considerably over the forecast period, mainly driven by increasing construction and infrastructure development activities globally. Rapid urbanization accompanied with rising disposable incomes is augmenting the demand for efficient lighting solutions from the residential sector. Government regulations mandating the use of energy-efficient lighting to reduce electricity consumption and carbon footprint is a key factor propelling the artificial lights market growth. Introduction of advanced technological capabilities such as smart connectivity, dimming options, and longer lifespan is further supporting the demand for artificial lighting systems across various end-use sectors.
PEST Analysis
Political: The artificial lights market is influenced by various environmental regulations and industry standards set by governing bodies regarding energy consumption and emissions.
Economic: Factors such as rising disposable incomes, growing construction activities especially in developing nations are boosting the sales of artificial lights. Fluctuations in raw material prices may impact market costs.
Social: Changing lifestyles and increasing spending on home décor and aesthetics have increased the demand for innovative and customized lighting solutions. Rapid urbanization is another key driver.
Technological: Advances in LED technology have enabled manufacturers to develop energy-efficient lighting solutions with longer lifespans and variable color temperature options. Integration of lighting systems with IoT is also gaining traction.
Geographical regions with high market concentration
The artificial lights market witnesses significant demand from Asia Pacific owing to rapid infrastructure growth and urbanization driving construction activity in countries such as China and India. North America and Western Europe are also major regional markets due to high living standards and modernization trends.
Fastest growing region
The artificial lights market is expected to witness fastest growth in the Asia Pacific region particularly in developing nations on account of increasing investments in commercial and residential real estate, rising disposable incomes, expanding middle class population and smart city projects. China continues to lead the regional market in terms of consumption.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.
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