New York, Jan. 10, 2024 (GLOBE NEWSWIRE) -- Summary of the Industrial Lighting Market
A recent report by Persistence Market Research predicts that the industrial lighting market is set to reach around US$ 10,103.0 million by 2023. This growth is fueled by the increasing use of industrial lighting in warehouses, logistics, and industrial enterprises worldwide. The demand for industrial lighting has risen significantly in recent years and is expected to continue growing rapidly. Technological advancements in various industries have further contributed to the market's expansion.
The market is projected to witness a substantial increase, reaching approximately US$ 19,323.9 million between 2023 and 2033, with a steady Compound Annual Growth Rate (CAGR) of 6.7% during this period. Many manufacturers are investing in smart industrial lighting for long-term financial benefits, driven by the rise of industrial automation, workforce shortages, and the need to reduce labor costs. The U.S. holds a significant market share of 16.1%.
Industrial lighting is commonly used in factories, production lines, cold storage facilities, and warehouses. Unlike the pre-Industry 4.0 era, where it was primarily used for illumination, modern industrial lighting solutions focus on being smart, connected, and sustainable.
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Market Scope:
| Report Coverage | Details | |
| Market Revenue 2023 | US$ 10,103.0 Million | |
| Estimated Revenue 2033 | US$ 19,323.9 Million | |
| Growth Rate - CAGR | 6.7% | |
| Forecast Period | 2022-2033 | |
| No. of Pages | 260 Pages | |
| Market Segmentation | By Type, Installation, Application, End-User, Region | |
| Regions Covered | North America, Latin America, Europe, South Asia & Pacific, East Asia, The Middle East & Africa | |
| Key Companies Profiled |
| |
Analysis of the Industrial Lighting Market Outlook for 2022 to 2033
The industrial lighting market faced challenges due to the pandemic and geopolitical crises like the U.S.-China trade war and the Russia-Ukraine war. Despite a value CAGR of approximately 3.3% during 2017-2022, the market is expected to be worth about US$ 19,323.9 million by the end of 2033, growing at a CAGR of 6.7%. The trend towards larger, energy-efficient lighting solutions for manufacturing facilities contributes to the market's expansion. Industrial lighting finds applications in various industrial sites, offering benefits such as ease of retrofitting, increased efficiency, lower maintenance, improved durability, even coverage, controllability, enhanced light quality, and a safer work environment.
The market is projected to experience a CAGR of around 6.5% in the first half and 6.9% in the second half of the forecast period. Industrial lighting is particularly suitable for manufacturing buildings like factories, chemical plants, or refineries, owing to its adaptability to wider floor layouts. Adequate and effective lighting is associated with increased efficiency, enhanced safety, and a better working environment for employees.
In a nutshell, the Persistence Market Research report is a must-read for start-ups, industry players, investors, researchers, consultants, business strategists, and all those who are looking to understand this industry. Get a glance at the report at - https://www.persistencemarketresearch.com/market-research/industrial-lighting-market.asp
Market Dynamics
Drivers:
The industrial sector's growing output worldwide is increasing its reliance on electricity, leading to higher operational costs for manufacturers. This drives the need for energy-efficient lighting solutions. In the United States alone, the industrial sector consumed around 32.78 quadrillions BTU of energy in 2019. Lighting constitutes a significant portion of electricity expenses, prompting manufacturers and governments globally to focus on reducing carbon emissions from electricity generation. The demand for energy-saving solutions has led to increased investments in energy-efficient lighting technologies.
Government bodies and regulatory institutions contribute to awareness through campaigns like the US Department of Energy's Solid-state Lighting program, promoting the adoption of energy-efficient lighting technologies. This has resulted in a shift towards LED lighting solutions, gradually phasing out fluorescents and high-intensity discharge (HID) lighting solutions.
Lighting vendors continually invest in improving efficiency, introducing new solutions across various categories. LEDs have expanded beyond new industrial setups, with companies replacing outdated lighting products with energy-efficient solutions. The LED industry's significant investments have led to the development of more affordable and innovative LED technologies.
LED-based lighting is anticipated as the future, driven by technology improvements that reduce production costs while enhancing efficiency. LEDs are up to 80% more efficient than traditional lighting solutions, making them increasingly popular among end-users.
Governments globally contribute to market growth through incentives and regulatory frameworks. China and Japan, as production-intensive regions, have pledged energy efficiency, encouraging the adoption of efficient lighting technologies.
Restraints:
The initial high cost of integrating or replacing existing lighting systems in manufacturing plants poses a challenge, especially for small and medium industries. Some end-users prefer traditional lamps due to their lower cost and lack of expertise in maintaining newer technologies. The assembly process for LEDs is complex, and the influx of local manufacturers into the market impacts users' purchase decisions.
Despite reduced costs, challenges persist. Local manufacturers face intense competition, particularly from Chinese players offering lower-priced lighting solutions. Safety concerns arise, with more than 30% of imported luminaires failing to comply with EU safety requirements.
Key Opportunities:
The emergence of LED technology has transformed the lighting sector's economics, providing opportunities and challenges. LED lighting offers a compelling value proposition and extends the industry's value chain. Government initiatives, such as those aiming to cut carbon emissions, create opportunities for LED product vendors. Growing demand in regions like Asia-Pacific and North America, driven by retail and e-commerce sales, presents opportunities for industrial lighting market players.
LEDs are gaining importance for hazardous locations due to low maintenance costs. Encapsulation technology, though new to hazardous location-rated lighting, offers benefits such as improved performance and energy efficiency. Manufacturers are expected to leverage this opportunity, introducing newer upgrades and flexible mounting options for LED fixtures in harsh conditions.
In summary, while challenges persist, the industrial lighting market sees significant opportunities driven by the adoption of LED technology, government initiatives, and the growing demand in key regions.
Market Segmentation
The report looks into the industrial lighting market based on different factors like the source of light, what's being offered, how it's installed, the specific product, where it's used, and where it's happening. The report examines and understands the things that make the market move, like what helps it grow, what holds it back, the chances it has, and the challenges specific to the industry. It also introduces the main players in the industrial lighting market.
In 2016, the application of lighting in factories and production lines took up a big part of the industrial lighting market. These areas are choosing advanced lighting solutions, like LEDs and connected lighting, to quickly get back the money they put in by getting better light quality and control. Factories and production lines are the most significant places where industrial lighting solutions are used. The type of work done in these places can vary a lot, so each lighting solution has to be made to fit the available space and the complexity of the job.
Looking at the products, in 2016, flood lighting or area lighting was the most common, while spot lighting is expected to grow the most in the coming years. Flood lighting and area lighting are more and more used in places like warehouses, outer parts of industries, and parking areas. These types of lighting give bright light to these places, making sure they're safe and secure. Many companies include this kind of lighting system in their product lineup.
Asia Pacific (APAC) is the top player in the industrial lighting market, but the rest of the world (RoW) is expected to grow the most in the coming years. Countries in the RoW region are likely to see a lot of growth in building projects, which is expected to boost the market in this area.
A challenge for manufacturers in the industrial lighting market is the low profit margin of LED lighting products. The big players in the market, like Philips Lighting Holding, Hubbell Lighting, Emerson, Legrand, Acuity Brands Lighting, TOYODA GOSEI, Cree, General Electric, Osram Licht AG, and Zumtobel Group, have used different strategies, such as launching new products, making contracts, acquiring other companies, forming partnerships, and expanding their businesses to meet the needs of the industrial lighting market.
Top 5 Key Trends Shaping the Industrial Lighting Market
The industrial lighting market is undergoing a dynamic transformation, fueled by a confluence of trends that are illuminating the path towards a brighter, more efficient, and worker-centric future. Here's a descriptive dive into some of the key trends reshaping the landscape:
LEDs reign supreme: Traditional lighting sources like fluorescent and HID lamps are slowly fading into the shadows, replaced by the ever-brightening reign of LEDs. Their unmatched energy efficiency, boasting up to 90% less energy consumption, is like a beacon attracting industrial giants seeking to slash energy bills and embrace sustainability. Additionally, their extended lifespans mean less frequent replacements, reducing maintenance costs and minimizing disruptions. Think of it as a win-win for both the environment and the bottom line.
Smart lighting takes the stage: Industrial lighting is no longer just about illuminating the workplace, it's becoming intelligently connected. Smart systems equipped with sensors and wireless communication are transforming spaces into dynamic, adaptable environments. Imagine lights that automatically adjust brightness based on occupancy and ambient light, saving energy while ensuring optimal visibility for tasks. This isn't just a futuristic fantasy, it's the reality smart lighting is creating, boosting productivity and enhancing worker comfort.
Human-centric focus shines through: The industrial lighting spotlight is shifting from mere illumination to prioritizing human well-being. The concept of human-centric lighting recognizes the impact light has on our circadian rhythms, mood, and cognitive performance. Think of it as tailoring the light to the human, not the other way around. This involves using lights that mimic natural daylight patterns, promoting alertness during work hours and fostering relaxation closer to shift end. It's a trend that's not just about aesthetics, it's about creating spaces that support employee health and well-being, ultimately leading to improved productivity and reduced absenteeism.
Sustainability takes center stage: The industrial lighting industry is shedding its energy-guzzling past and embracing a greener future. From the use of recycled materials in luminaire production to energy-efficient manufacturing processes, sustainability is becoming a core value. This extends to the product itself, with lights designed for easy disassembly and recycling, minimizing waste and maximizing resource efficiency. It's a trend that not only benefits the environment but also resonates with customers increasingly prioritizing sustainability in their choices.
Regional variations paint a diverse picture: The growth and trends of the industrial lighting market are not uniform across the globe. Developing economies in Asia Pacific are experiencing an illumination explosion driven by rapid industrialization and urbanization. Here, the focus is on adopting cost-effective LED solutions to meet the growing demand for energy-efficient lighting. In contrast, mature markets like Europe and North America are already heavily saturated with LED lighting. The trend here is towards retrofitting existing infrastructure with smart systems and exploring niche areas like human-centric lighting. Emerging markets like Latin America and Africa hold immense potential for future growth, as their industrial sectors expand and embrace the latest lighting technologies.
Key Questions Answered in the Report
- What factors are leading the growth trends in the market?
- What is the present market size, and how is it anticipated to change in the forthcoming years?
- What are the pivotal elements shaping the market?
- How is the segmentation of the Industrial Lighting market done, considering types, fuels, applications, or other pertinent factors?
- Who are the primary participants in the Industrial Lighting market?
- What strategies are being employed by these players to secure a competitive advantage?
- What are the catalysts driving the expansion of the Industrial Lighting market?
- Which regions are projected to experience substantial growth, and what are the reasons behind it?
- What recent technological advancements are impacting the Industrial Lighting industry?
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