According to experts, LED lighting market value increased by in excess of 10% over the last year, and in 2018 it is expected to jump another 7.8%. In fact, it will only decrease after 2020; once retrofit lamps and lighting like tubes and bulbs that can be replaced with LED technologies have entered a period of saturation. By contrast, many commercial lighting products are required to generate light of a certain quality. LED technology is not expected to develop fast enough in the coming year to be able to meet those standards in the majority of cases. The major growth in this field is expected to occur after the year 2020. Besides retrofit LED lighting products and projects, the other three major drivers behind global LED lighting growth in the year 2018 are expected to be LED smart lighting, LED lighting in developing countries, and niche LED lighting.
LED Smart Lighting
LED smart lighting grew tremendously in 2017, with sales increasing 95% from the previous year as the relevant technology matured and the concept of smart lighting became more popular and familiar among consumers. Market scale is expected to increase again in 2018, reaching USD 13.4 billion by the year 2020. The most widespread applications of LED smart lighting are in commercial and industrial settings, since these lights are very easy to install and use. And in the future this LED technology could become a major driver of growth in the business sector, with the generation of new, innovative business models and smart lighting’s application to already existing fields.
LED Lighting in Developing Countries
Economic growth in developing countries is naturally driving the processes of industrialization, infrastructure development, and urbanization, including the creation of street lighting. This, in turn, is encouraging an ever greater uptake of LED lighting, which is forecast to increase again in 2018. This trend is aided in equal measure by the increasing concern for environmental considerations. The formation worldwide of ‘green’ policies, including tax incentives and energy subsidies for ‘clean’ energy alternatives, further draws attention to LED lighting. In short, emerging manufacturers who enter the market with government and technical assistance can adopt LED lighting from the get-go and make generous profits. It is only later on down the line that profits may stagnate. LED lighting demand in the developing world is growing most rapidly in India, Southeast Asia and Vietnam.
LED Niche Lighting
The other major driver behind global LED growth is the rise of LED niche lighting, in particular in the fields of healthcare lighting, fishing lighting, marine and harbor lighting, and horticulture lighting. There are again major profits to be made for LED lighting manufacturers serving these niche markets. For example, in 2017, horticultural LED lighting grew rapidly, in particular in China and The United States. It was driven largely by the demand for greenhouse lighting and factory and plant construction. In 2018 and the years ahead, such trends are expected to continue.