India LED Lighting Market, By Region, Competition, Forecast & Opportunities, 2021-2031F

The India LED Lighting Market was valued at USD 3.79 Billion in 2025, and is expected to reach USD 7.46 Billion by 2031, rising at a CAGR of 11.95%. LED lighting technology, known for its energy efficiency and long operational life, is widely replacing traditional lighting systems across Indian households, commercial spaces, public infrastructure, and industrial units. LEDs consume significantly less power and require minimal maintenance, making them ideal for both urban and rural applications.

Their adoption has been accelerated by large-scale government programs, rising awareness of energy savings, and growing interest in sustainable and smart lighting solutions. As infrastructure and rural electrification expand, and as consumers shift toward intelligent lighting systems, the LED market is expected to continue its strong growth trajectory. The integration of advanced technologies such as IoT and tunable lighting is further contributing to the transformation of the lighting ecosystem in India.

Key Market Drivers

Government Initiatives and Policy Support

Government-led programs like UJALA and the Street Lighting National Programme have played a pivotal role in promoting LED usage across the country. These initiatives have facilitated the mass distribution of LED bulbs and streetlights, primarily aimed at reducing power consumption and minimizing public electricity expenditure. This large-scale deployment has significantly boosted LED penetration in Tier II and Tier III cities, encouraging participation from private players. Regulatory policies such as the Bureau of Energy Efficiency’s Minimum Energy Performance Standards (MEPS) and mandatory labeling for LED products are compelling manufacturers to enhance product quality and efficiency. These frameworks have helped align LED market growth with national energy conservation goals and sustainability targets. Since 2018, more than 250 million LED bulbs and 1.6 million streetlights have been distributed across 30 states, resulting in substantial reductions in electricity use - approximately 16 gigawatt-hours daily - along with notable cuts in emissions and infrastructure energy costs.

Key Market Challenges

Market Saturation and Price Competition

As LED adoption accelerates, especially in urban and semi-urban regions, the market is reaching a saturation point for basic lighting products like bulbs, tube lights, and panels. This has intensified competition and triggered aggressive price wars among vendors. While this benefits end-users, it places pressure on manufacturer margins, particularly affecting small and mid-sized domestic players. Without clear brand differentiation or proprietary innovations, many companies struggle to maintain profitability in this highly commoditized environment.

Additionally, low-cost imports - mainly from China - continue to undercut local manufacturers. These imported products are often of questionable quality, eroding consumer trust and adding to the challenge of ensuring consistent standards across a fragmented supply chain. Domestic companies face the dual burden of investing in product development and branding while navigating a price-sensitive market. Without sustained innovation and potential market consolidation, the LED lighting industry risks becoming oversaturated and unsustainable for smaller stakeholders.

Key Market Trends

Growing Demand for Smart and Connected Lighting Solutions

A notable trend shaping the India LED Lighting Market is the rising adoption of smart lighting systems integrated with IoT capabilities. Consumers and enterprises are increasingly opting for solutions that offer remote control, automation, and real-time energy management via mobile apps and smart sensors. Features like motion sensing, dimming, color tuning, and programmable scheduling are gaining popularity in modern urban homes and commercial spaces.

This shift is fueled by smart city development and green building mandates that encourage the use of connected lighting infrastructure. Developers and architects are integrating intelligent lighting in new construction to improve energy efficiency and user experience. Furthermore, compatibility with voice assistants and smart home platforms is broadening the appeal of such solutions. As digital infrastructure improves and tech-savvy consumers grow in number, smart lighting is becoming a mainstream expectation, transforming LEDs from conventional fixtures into adaptive, interactive systems.

Key Market Players

Signify N.V.
Havells India Limited
Syska E-Retail Pvt. Ltd.
Bajaj Electricals Limited
Wipro Enterprises Private Limited
Crompton Greaves Consumer Electricals Limited
Osram
Orient Electric Limited

Report Scope:

In this report, the India LED Lighting Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

India LED Lighting Market, By Type:

LED Bulbs & Lamps
Batten Lights
Downlights
Spotlights
Others

India LED Lighting Market, By End Use Sector:

Commercial
Residential
Institutional
Industrial

India LED Lighting Market, By Application:

Outdoor Lighting
Indoor Lighting
Automotive Lighting
Others