The industrial lighting market is expected to register a CAGR of 5.3% during the forecast period (2021 - 2026). The availability of a wide range of lighting products at competitive prices and the increasing demand for energy-efficient lighting systems across various industrial sectors drive the industrial lighting market's growth.
- Amid the COVID-19 pandemic, the market has witnessed the halting of production and disruption in the supply chain. It led to weakened industrial output growth and the decline of light-manufacturing output across significant manufacturing hubs. Due to the impact of the COVID-19 outbreak on the chemical industry globally, the market is also susceptible to increased LED lighting price. For instance, in April 2020, Lumileds announced the increased prices for LED lightings by 4% starting mid-April 2020. It attributed the same as a measure to offset costs incurred during the coronavirus pandemic.
- Industrial operators are often faced with challenges of maintenance costs due to heat losses of the traditional and most common lighting fixtures in commercial and industrial settings, i.e., fluorescent and high-intensity discharge (HID) lights. LED lights that offer greater energy and cost savings, as well as low maintenance costs, have witnessed high demand in the past few years.
- Factors, such as the regulatory standards promoting the use of LED lightings and worker safety in industrial locations, regulations that halt the usage of mercury vapor ballasts and metal halide activated lighting, demand for cost-effective lighting solutions, high service life, and replacement of traditional lighting systems with LEDs, are expected to drive the growth of the market during the forecast period. The emergence of LED lighting as a viable alternative to conventional lighting provides growth opportunities across various markets globally.
- With the introduction of new solutions to illuminate the work area, players in the market are finding exciting growth opportunities. For instance, in August 2020, Emerson Appleton released a safe and economical solution for retrofitting a plant’s legacy HID lighting system to an energy-efficient LED system. The Appleton Contender LED Luminaires offer an energy savings of up to 65% compared to HID lighting. With the low-profile design, these luminaires provide lighting options for low clearance areas.
- The increase in demand for LED lighting in industrial locations is likely to be aided by the growth of the new oil and gas plant project in India, China, and Indonesia, coinciding with the coal-to-gas switching policies. For instance, China planned and announced the completion of around 305 petrochemical plants, with a total capacity of about 152.4 MTPA, by 2030, with major capacity additions coming from Hengli Petrochemical and China Petrochemical Corp. Therefore, the optimistic oil and gas industry provides significant scope for the market over the forecast period.
Key Market Trends
LED Light Source is Expected to Hold Major Share
- LED has features, such as longevity, energy efficiency, low operational/maintenance costs, and ability to deliver an increasingly shorter return on investment (ROI), which may ultimately drive its demand in the industrial lighting market. Moreover, LEDs produce no harmful ultraviolet or infrared radiation, thereby offer numerous benefits, such as lowered cooling costs, maintenance simplification, prolonged product life, avoiding damage to eyes and sensitive equipment, and providing a margin of safety in an industrial environment.
- Governments and public organizations worldwide are increasingly deploying these LED Lighting networks to address the maintenance issues created by incandescent lamps' usage. These bulbs and high-pressure sodium are easily compounded due to the surrounding reactive gases. Besides, as a lighting source, LED also provides a high luminosity and high efficiency and offers operational solutions against corrosion and vapor resistance compared to traditional lighting
- Also, LEDs contain no moving parts. Hence, they are more durable and can withstand shock and corrosion better. Their inability to ignite with a spark is an added advantage. With such properties, LEDs are extremely useful for the mining industry applications that are often subject to high vibrations, debris, chemicals, and explosive solutions.
- One other prominent characteristic of LEDs is that it eliminates light pollution by reducing energy waste reduction, by controlling each diode through lensing to aim the light exactly where it is needed. Light pollution can be controlled by up to 50% and energy waste by up to 70%.
Europe to Hold Significant Market Share
- The associations in the region frequently engage by proposing strategies and plans for lighting segments. The European SSL Support Strategy of 2011 was proposed and implemented for European LED standardization and accelerating large-scale Solid-State- Lighting deployment. Then, in March 2019, the Russian government announced plans to increase the volume of support for its domestic petrochemicals industry by doubling the capacity. The government further aims to attract over USD 40 billion of additional investments to the industry by 2030.
- Further, most European countries, primarily the United Kingdom, are aiming for net-zero carbon emissions by 2050. Therefore, local manufacturing companies are investing considerably in lighting innovations based on this agenda. As a result, the manufacturers are innovating to keep up with the environmental norms. Also, the Europe Association of Lighting and Lighting Europe released, in August 2019, the norms on how modulated fees can be applied to the lamps and luminaires segment. After enforcing the waste management fees system in the EU market, the lighting segment still faces challenges.
- Furthermore, the use of LED lighting in quarries is increasing in the region due to various mines, around 2,000 mines, and quarries in the United Kingdom alone to produce a vast range of materials, despite reduced activity in the region. Despite the slow growth of mining in Europe, the investments are skewed toward reducing overall cost using technology that miners focus upon currently.
- Other recent developments, such as the ban on mercury in lamps to cut the EU's CO2 emissions by more than 40 megatons and electricity use by 138 TWh by 2030, lead to increased LED lighting applications across coal-based power plants in the region. The report by the Swedish Energy Agency (SEA) and CLASP in late 2019 underlines four major power plants dependency on mercury-based lightings.
The industrial lighting market is highly fragmented. Overall, the competitive rivalry among existing competitors is high. Further, the new innovation strategies of large and small enterprise companies are expected to drive market growth. Some of the recent developments in the market are:
- December 2020 - Signify launches residential UV-C tabletop lamp in Asia and the Middle East, adding an extra layer of safety for schools, food outlets, retail, industry, and offices. The Philips UV-C disinfection upper air luminaires are designed to be installed on walls or ceilings to continuously disinfect the air in the upper sections of supporting areas, circulation areas, and working areas while people are present in the lower sections of those rooms.
- August 2020 - Emerson Appleton released a safe and economical solution for retrofitting a plant’s legacy HID lighting system to an energy-efficient LED system. The Appleton Contender LED Luminaires offer an energy savings of up to 65% compared to HID lighting. With the low-profile design, these luminaires provide lighting options for low clearance areas.
- August 2020 - Hubbell Lighting introduced the SpectraSafe video security application intended for deployment on linear LED luminaires throughout facilities, such as office space, retail, care facilities, banks, and more, and intended to supplant legacy video security systems. The intention is facility security based on Internet of Things (IoT) technology with guaranteed secure transmission and storage of the video data.
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1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 on the Industry Ecosystem
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Awareness About Energy Savings Among End-users
5.1.2 Rising Adoption of LED Across Diversified Industrial Applications
5.2 Market Challenges
5.2.1 High Cost of Implementation
5.3 Market Opportunities
6 MARKET SEGMENTATION
6.1 By Light Source
6.1.2 High-intensity Discharge (HID) Lighting
6.1.3 Fluorescent Lighting
6.2 By Product Type
6.2.1 High/Low Bay Lighting
6.2.2 Flood/Area Lighting
6.3 By End-user Application
6.3.1 Oil and Gas
6.3.6 Other End-user Applications
6.4.1 North America
6.4.3 Asia Pacific
6.4.4 Latin America
6.4.5 Middle East and Africa
7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Signify Holding
7.1.2 Cree Inc.
7.1.3 Eaton Corporation PLC
7.1.4 Emerson Electric Co.
7.1.5 Dialight PLC
7.1.6 Legrand SA
7.1.7 Zumtobel Group AG
7.1.8 Acuity Brands Inc.
7.1.9 Osram Licht AG
7.1.10 Trilux Lighting Ltd
7.1.11 Hubbell Incorporated
7.1.12 Larson Electronics LLC
7.1.13 Hilclare Lighting
7.1.14 Raytec Ltd
7.1.15 Glamox UK
7.1.16 Nemalux Inc.
7.1.17 R.Stahl Limited
7.1.18 ABB Installation Products Inc. (ABB Limited)
8 INVESTMENT ANALYSIS
9 MARKET OUTLOOK
- Signify Holding
- Cree Inc.
- Eaton Corporation PLC
- Emerson Electric Co.
- Dialight PLC
- Legrand SA
- Zumtobel Group AG
- Acuity Brands Inc.
- Osram Licht AG
- Trilux Lighting Ltd
- Hubbell Incorporated
- Larson Electronics LLC
- Hilclare Lighting
- Raytec Ltd
- Glamox UK
- Nemalux Inc.
- R.Stahl Limited
- ABB Installation Products Inc. (ABB Limited)