A number of factors such as the growing focus on modernization of infrastructure, declining prices of light-emitting diodes (LEDs), and increasing adoption of energy-efficient lighting solutions are expected to boost the LED lighting market growth at a CAGR of 10.7% during the forecast period (2020–2030). According to P&S Intelligence, the market size is expected to reach $152,442.3 million by 2030 from $55,201.9 million in 2020.

Moreover, the market is witnessing a trend of surging adoption of smart LED lighting solutions. Geographically, the APAC LED lighting market held the largest share in 2020. This is ascribed to the rising demand for LED solutions from the growing construction sector across the region and the increasing awareness for energy-efficient LEDs among governments and consumers due to the surging power tariff and environmental concerns.

This is supported by the replacement of conventional lights, including incandescent lights, sodium-vapor lamps, and compact fluorescent lamps (CFL), with LEDs in commercial, residential, and industrial settings. Moreover, increasing disposable income of people, rising infrastructure and industries, and growing population are driving the regional market. Moreover, based on installation type, the LED lighting market is bifurcated into new and retrofit.

Between the two, the retrofit category is projected to witness faster growth during the forecast period. This can be attributed to the surging replacement of sodium-vapor and incandescent lamps with LEDs in various nations, including the U.S., China, India, the U.A.E., Japan, and South Korea. Basically, with the phasing out of sodium-vapor and incandescent lamps in these economies, the need for LED lamps for retrofitting is rising, which, in turn, is boosting the market growth in this category.

Thus, the growing awareness of energy-efficient lighting solutions, declining costs of LEDs, and surging development of infrastructure are expected to propel the demand for LED lighting solutions in the years to come.