The artificial lights market comprises various types of lights used for illumination purposes in indoor or outdoor applications. Artificial lights such as LED lights, CFL lights, and incandescent lights offer advantages like energy efficiency, durability, and variety in design which have increased their demand from residential, commercial, and industrial sectors. The need for effective and long-lasting lighting solutions is driving the growth of the artificial lights industry.
The Global artificial lights Market is estimated to be valued at US$ 106 Billion in 2024 and is expected to exhibit a CAGR of 5% over the forecast period 2024-2029.
Key Takeaways
Key players operating in the artificial lights market are Philips, Osram, General Electric, CREE, and Acuity Brands. Artificial lights manufacturers are focusing on launching new LED and smart lighting products with advanced features to gain a competitive edge in the market.
The growing construction of residential and commercial buildings across the globe is fueling the demand for artificial lighting fixtures. Rapid urbanization and increasing spending power of consumers are encouraging homeowners to opt for innovative and aesthetic lighting systems.
Technological advancements in LED lights such as tunable white light and smartphone control are gaining traction among customers. Integration of artificial intelligence and IoT is allowing lights to synchronize with other smart devices via voice commands, offering convenience to users.
Market Trends
Smart lighting systems embedded with sensors and connected devices are transforming the Artificial Lights Market industry. Products with Bluetooth, Wi-Fi, and motion sensors provide conveniences like remote operation, automatic on/off, and scenes & schedules setting.
Sustainability is a key trend influencing customers' purchasing decisions. Energy-efficient LED bulbs and intelligent lighting controls to reduce unnecessary usage are witnessing high demand. Stringent regulations on mercury and energy usage are positively impacting the sales of eco-friendly lighting options.
Market Opportunities
The outdoor lighting market possesses strong growth potential driven by rising usage of LED posts, bollards, floodlights in landscapes, parks, streets, and sport facilities. Establishments are widely installing outdoor luminaries with controllability, versatility and long operational lifespan.
Governments across nations are launching favorable policies and subsidies for businesses replacing conventional lights with LED alternatives. This encourages establishments to retrofit their buildings, opening new prospects for artificial light manufacturers.
Impact of COVID-19 on Artificial Lights Market Growth
The COVID-19 pandemic has significantly impacted the artificial lights market. During the initial lockdown periods in 2020, manufacturing and supply chains were severely disrupted leading to a steep decline in production and sales. With offices, educational institutions, retail stores, and other commercial establishments remaining shut during lockdowns, the demand from these sectors witnessed a sharp contraction. However, as people were confined to their homes due to movement restrictions and closure of outdoor activities, residential consumption increased. Consumers upgraded their lighting systems to boost indoor ambience for working, studying or leisure activities at home.
As economies are reopening in a phased manner post lockdowns, commercial activities are gradually reviving which is fueling a rebound in the market. Many countries have now eased lockdown measures with implementation of necessary safety protocols. Offices, educational institutes and retail stores are resuming partial operations which is propelling the artificial lights demand from non-residential sectors. Meanwhile, the work from home and online education trends will continue to support residential lighting needs. While uncertainties persist, mass vaccination drives underway globally are expected to aid market recovery in 2021. Innovation in LED lighting, smart lighting control systems and focus on hygiene will be key trends that gain prominence.
In terms of value, Asia Pacific currently dominates the artificial lights market, led by countries like China, India, Japan and South Korea. The region accounts for more than half of global market revenues owing to large manufacturing bases, growing construction activities and rising disposable incomes. North America stands as the second largest regional market closely followed by Europe. However, Middle East and Africa is witnessing rapid advances underpinned by infrastructure development projects and initiatives to boost energy efficiency. Countries such as Turkey, Saudi Arabia, UAE and South Africa represent high potential markets. Latin America is also emerging as a lucrative geographical area for artificial lights.
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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.