The artificial lights market includes various lighting products which provide illumination in indoor as well as outdoor environments. LED lamps, CFL lamps, tubes and bulbs are widely used indoor lighting solutions due to their energy efficiency and longer lifespan as compared to traditional incandescent bulbs. Outdoor lighting includes street lights, landscape lights and floodlights which provide illumination in locations like sidewalks, parks and buildings. Rising construction of streets, buildings and commercial spaces has boosted the demand for outdoor lighting solutions. Moreover, increasing trend of smart and connected lighting is also supporting the growth of artificial lights market.
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 operating in the artificial lights market are Philips, Osram, GE, Panasonic and Acuity Brands. LED-based lighting is gaining popularity due to its energy efficiency and longer lifespan. Rising demand for smart and connected lighting from commercial spaces like malls, corporate parks is a major factor fueling the market growth. Technological advancements like integration of lighting with IoT and introduction of lighting management systems are making lighting solutions more versatile.
The Artificial Lights Market is observing robust demand from commercial, industrial and residential sectors. Rapid urbanization and growing construction activities across the world are driving the demand for indoor and outdoor lighting products. Also, increasing consumer preference for LED lights over conventional lights due to benefits like low electricity bills is significantly contributing to the growth of artificial lights market. Adoption of smart and connected lighting solutions equipped with IoT and wireless technologies enable remote monitoring and management of lights which is gaining traction in the market.
Market Trends
The integration of artificial lighting with IoT is a key trend in the market. IoT-enabled lights can be controlled and monitored remotely using smartphones. This helps in optimized lighting management and energy savings. Another trend is the growing popularity of wireless lighting control systems which provide flexibility in lighting operations without requiring rewiring.
Market Opportunities
Rising focus on smart cities in developing nations presents an opportunity for advanced street lighting systems integrated with IoT and sensors. Also, increasing campaigns to promote adoption of energy efficient lights will drive replacement demand and support market opportunities. Growing home automation further opens up opportunities for lighting control products integrated with smart home platforms.
Impact of COVID-19 on Artificial Lights Market Growth
The COVID-19 pandemic has severely impacted the artificial lights market growth. During the initial lockdown period, manufacturing facilities and distribution channels were shut down which disrupted the supply chain. With people confined to their homes, demand from commercial sectors like offices, malls, retailers declined substantially. Project installations and upgrades were temporarily halted which negatively affected the market. However, as lockdowns eased, demand from the residential sector increased as people spent more time at home. Many turned to home improvement projects and invested in smart lighting solutions for improved convenience, safety, and energy savings. Looking ahead, the work from home culture may sustain longer term demand from homeowners. On the other hand, commercial sector recovery will depend on how quickly businesses resume operations and footfalls return to pre-pandemic levels.
Geographical Concentration of Value in Artificial Lights Market
The Asia Pacific region accounts for the largest share of the artificial lights market in terms of value. Countries like China, India, and Japan are major manufacturing and consumer markets. Availability of raw materials and low-cost manufacturing have helped Asia cement its dominance. North America follows in second place driven by rising uptake of smart and connected home solutions across the United States and Canada. Europe holds the third position due to growing emphasis on energy-efficient lighting across Germany, United Kingdom, France and Italy. Regulations promoting greener alternatives are fueling market growth.
Fastest Growing Region for Artificial Lights Market
The Middle East and Africa region is poised to witness the fastest growth in the artificial lights market over the forecast period. Initiatives towards infrastructure development and urbanization across GCC countries are creating substantial demand. Projects aimed at modernizing cities with efficient public lighting are underway. Additionally, governments are introducing regulations mandating the switch to LED bulbs and tubes to reduce energy consumption and carbon footprint. Rising disposable incomes are also encouraging residential consumers to adopt advanced lighting controls and systems. These factors are expected to significantly boost market revenues from the MEA region in the coming years.
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About Author:
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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