Artificial Lights Market is illuminated by advancements in LED technology

Artificial lighting serves as an integral part of our daily lives, allowing for activities after dark hours and illumination where natural light is insufficient. Advancements in LED technology have revolutionized the artificial lights market over the past decade. LED lights offer several advantages - they are compact in size, highly energy efficient, long lasting with lifespan of over 50,000 hours, and contain no harmful substances like mercury. They provide customized light output for various applications ranging from general illumination to accent lighting.

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, Cree Corporation, OSRAM, General Electric, Eaton, and Acuity Brands. Key players are focusing on development of smart and connected lighting solutions with integration of IoT and wireless technologies. Rapid urbanization and infrastructure growth in developing economies are fueling demand for efficient and cost-effective lighting solutions. Furthermore, stringent regulations regarding energy consumption and carbon emissions are propelling the adoption of LED lights across commercial and residential sectors globally.

The growing demand for upgraded and efficient lighting systems across various industries is driving the Artificial Lights Market. LED lights are increasingly replacing conventional lighting in offices, hospitals, factories, shops and malls due to long life, design flexibility and energy savings. Furthermore, retrofitting of LED lights for street and outdoor lighting is gaining traction among municipal corporations and local governments.

Several players are expanding geographically through strategic acquisitions and partnerships to cater to the growing global demand. For instance, in 2021, Signify acquired Cooper Lighting Solutions to expand its presence in North America. Osram also acquired TRILUX Lighting to strengthen its position in Europe. Such initiatives allow companies to leverage local manufacturing capabilities and distribution networks.

Market key trends

One of the key trends in the artificial lights market is the growing prominence of smart and connected lighting solutions. Major players are focusing on development of IoT integrated lights that can be controlled remotely via smartphones and tablets. Features such as dimming, scheduling and grouping are driving the demand for smart lights among consumers and commercial users. Furthermore, integration of advanced technologies such as occupancy and motion sensors, Bluetooth and WiFi are enabling development of automated lighting controls. This enhances energy savings considerably while providing convenience.

Porter's Analysis

Threat of new entrants: Low startup costs allows new players to enter the market easily. However, established brands have strong brand recognition and distribution networks.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes and brands. However, switching costs are low.

Bargaining power of suppliers: Major lighting companies both produce and distribute artificial lights, so they face less pressure from suppliers. Suppliers of raw materials have moderate power.

Threat of new substitutes: Emerging energy efficient lighting technologies like LEDs pose a potential threat. However, retrofitting costs reduce short term substitution.

Competitive rivalry: The market has numerous lighting brands competing based on innovation, pricing and branding.

Geographical Regions

The artificial lights market in terms of value is highly concentrated in Asia Pacific region due to large population and rapid urbanization in China and India. North America and Europe are also major value sharing regions.

The artificial lights market is witnessing fastest value growth in Asia and developing countries of Africa region. Rising construction activities, growing middle class and increasing disposable incomes are driving the adoption of latest lighting solutions in these regions.

Author Bio:

Priya Pandey is a dynamic and passionate editor with over three years of expertise in content editing and proofreading. Holding a bachelor's degree in biotechnology, Priya has a knack for making the content engaging. Her diverse portfolio includes editing documents across different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. Priya's meticulous attention to detail and commitment to excellence make her an invaluable asset in the world of content creation and refinement.

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