Artificial lighting plays a vital role in our daily lives by illuminating both indoor and outdoor spaces. From light bulbs to tube lights and streetlamps, artificial lights have become an integral part of modern infrastructure and living. While traditional incandescent bulbs consume significant amounts of energy, new energy-efficient lighting technologies are gaining ground. LED (light emitting diode) lights have emerged as a popular alternative due to their long life, high durability and ability to drastically reduce energy costs compared to other types. LED lights have seen widespread adoption in commercial establishments, offices, factories and public infrastructure projects in recent years.
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 General Electric (GE Lighting), Panasonic Corporation, Osram GmbH, Cree, Inc., and Acuity Brands Lighting, Inc. There is high demand for energy-efficient and long-lasting LED lights from both residential and commercial sectors.
Government policies and incentives promoting green lighting solutions also offer lucrative opportunities for Artificial Lights Market players. Leading companies are expanding their global footprint by establishing manufacturing plants and sales networks in rapidly developing regions. Strategic partnerships with local players help gain an edge in international markets.
Market Drivers
Increasing adoption of LED lights: LED lights have emerged as a sustainable and cost-effective alternative to traditional lighting due to their high energy efficiency. Rising awareness about cost and energy savings from LEDs is a major driver for the market.
Market Restrains
High initial costs: Though LED lights save substantially on energy costs in the long run, their initial purchase price is significantly higher than incumbent lighting technologies. This high upfront cost hinders widespread adoption, especially in price-sensitive regions and residential sectors.
Segment Analysis
The artificial lights market can be segmented based on the type into LED, CFL, incandescent, and others. Among these, LED lights account for around 40% share of the total market in 2025. LED lights have emerged as the most dominating segment owing to key advantages like high luminous efficiency, extended life span, robustness, and energy efficiency. As compared to other lighting technologies like incandescent and CFL, LED lights consume around 90% less energy and last 25 times longer. This has increased their adoption in commercial and residential applications greatly. The market can also be divided based on application into residential, commercial, outdoor, industrial and others. The commercial segment holds the major share of over 30% and is expected to witness significant growth during the forecast period. Growing construction of commercial buildings worldwide along with mandatory installation of energy efficient lighting systems is driving the demand for various artificial lights from this segment.
Global Analysis
On the basis of region, Asia Pacific holds the largest share in the global artificial lights market. Rapid industrialization and urbanization coupled with growing focus towards sustainable development by emerging economies in the region has increased the footprint of artificial lights market in Asia Pacific. China represents the largest country market owing to presence of huge manufacturing sector and favorable government policies promoting adoption of energy efficient lighting solutions. Europe is another major regional market fuelled by stringent regulations regarding use of eco-friendly lights. Presence of leading lighting manufacturers has made Europe an innovation hub in the market. North America market is matured but continues expanding backed by technological advancements and stable construction activities.
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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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