Solid-state lighting uses semiconductors to convert electricity into light. A solid-state lighting system generates visible light through electroluminescence, in which an electric current is passed through a semiconductor diode specially formulated to glow. Solid-state lighting is used in many applications because of its many advantages, such as its prolonged lifespan, increased light output, inherent safety, compact design, and high durability.
Rising Government-Supported Industry Consortiums Drives the Global Market
According to Straits Research, “The Solid-State Lighting Market size was valued at USD 44.02 billion in 2022. It is expected to reach USD 120.12 billion by 2031, growing at a CAGR of 11.80% during the forecast period (2023–2031).” The emergence of efficient solid-state lighting has brought about a paradigm shift in lighting technology. In Europe, Japan, South Korea, and Taiwan, energy conservation was one of the original founding principles of government-sponsored industry consortia. Additionally, several consortiums—including the Open Connectivity Foundation, the TALQ Consortium, oneM2M, Bluetooth SIG, the Industrial Internet Consortium, and the Zigbee—are cooperating to create typical specifications and standards to support interoperability among different solid-state lighting products. As a result of more government-sponsored industry consortiums, the market is expanding.
Technological Advancements Creates Tremendous Opportunities
Solid-state luminaires sold for residential use typically have an efficacy of over 100 lumens per watt, depending on the model. They must be increased to an average of 160 lumens per watt by 2030 to meet the objectives outlined in the Sustainable Development Scenario. LED efficacy is already at its highest compared to halogens (less than 20 lm/W) and compact fluorescent lights (around 60 lm/W). However, it is anticipated that fostering innovations to increase the efficacy of solid-state lighting will open profitable market expansion opportunities.
Asia-Pacific's solid-state lighting industry share is expected to grow at a CAGR of 13% during the forecast period. The Asia-Pacific solid-state lighting market is dominated by government regulations and policies, which promote long-term investments in the sector. The growing acceptance of smart lighting in Asia-Pacific also creates significant market expansion opportunities. In Asia-Pacific, the LED market is expanding due to technological advancements. The market is expanding as a result of the advantages of LEDs, such as their long durability, dependability, and small size. The market's top competitors will also benefit significantly from the increased demand for low-power lighting solutions.
Europe is expected to grow at a CAGR of 11.7% during the forecast period. European consumers favor more environmentally friendly lighting sources over conventional ones due to Germany's dominance. Solid-state lighting is frequently used in automotive, street lighting, and backlighting. The European Street light market is an oligopoly with few products and a largely reliable supply chain. The European market for solid-state lighting is expanding due to its benefits, including sustainability, low emissions, and efficient energy use. In addition, it is expected that the supply of low-tech components from developing countries for producing high-tech solutions will present profitable opportunities for the market's growth.
The global solid state lighting market’s major key players are Cree, Inc., Energy Focus, Inc., General Electric Company, Nichia Corporation, Osram Licht AG, Signify Holding, Samsung Electronics Co., Ltd, Seoul Semiconductor Co., Ltd., Sharp Corporation, and Toshiba Corporation.
Global Solid State Lighting Market: Segmentation
By Installation Type
By Industry Vertical