LED Light Engine Market Projected to Reach 78.6 Billion USD by 2029 – A Complete Global Analysis

The Global LED Light Engine Market size is forecasted at a CAGR of 13.5% throughout 2023 to 2029 and to reach US$ 78.52 Bn. by 2029. A detailed description of the factors and market trends pertaining to different regions is given in detail in the report.
LED Light Engine Market Overview
LED Light Engine refers to a self-contained unit that integrates multiple components essential for the operation of light-emitting diodes (LEDs). It typically consists of LEDs, driver circuitry, heat sinks, optics, and other control components. LED light engines are designed to provide a complete lighting solution with enhanced efficiency, durability, and versatility. They find wide-ranging applications in various sectors, including residential, commercial, industrial, and automotive lighting.

The global LED Light Engine market has experienced significant growth in recent years, driven by the increasing demand for energy-efficient lighting solutions, growing environmental awareness, and favourable government initiatives promoting LED adoption. The market has witnessed a surge in demand due to the numerous advantages offered by LED light engines, such as long lifespan, reduced power consumption, and improved lighting quality.

According to market research data, the LED Light Engine market reached a value of $32.4 billion in 2022, and it is projected to grow at a CAGR of 13.5% during the forecast period from 2023 to 2029. The market growth can be attributed to the expanding applications of LED light engines across diverse industries and the continuous advancements in LED technology.

The report discusses the overall market which includes the market dynamics, strategies that the major companies follow and their effects on the global LED Light Engine Market. The report includes the internal as well as external analysis of the LED Light Engine Industry thus providing with a brief idea of where the industry is heading.
LED Light Engine Market Research Methodology
The research methodology employed for the LED Light Engine market included both primary and secondary data sources to ensure a thorough examination and validation of all possible market factors. To estimate market size and forecasts, a bottom-up approach and multiple data triangulation methodologies were used, factoring in variables such as inflation, economic downturns, and regulatory and policy changes.

Segments were broken down based on Application and Product type, and country-wise analysis was conducted based on percentage adoption or utilization of the given market size. Major market players were identified through secondary research, while extensive primary research was conducted to verify crucial numbers arrived at through market engineering and calculations and employing several business tools. The LED Light Engine Market report also included GE-Mckinsey’s Matrix, perceptual mapping, internal TWOS analysis, PESTEL analysis, and Porter’s 5 forces model to provide a comprehensive understanding of the market and its future prospects.To know about the Research Methodology :- Request Free Sample Report
LED Light Engine Market Dynamics
The LED light engine market is projected to have significant growth potential, driven by the increasing demand for energy-efficient lighting solutions across various industries. This market dynamics report provides a comprehensive overview of the LED light engine market, including its drivers, restraints, and current trends. The subsequent sections of the report delve deeper into these dynamics, providing a thorough analysis of the market landscape.

LED Light Engine Market Drivers:

LED light engines are more energy-efficient than traditional lighting sources, such as incandescent and fluorescent bulbs. This is due to the fact that LEDs consume less power and last longer. As a result, there is a growing demand for LED light engines from businesses and consumers who are looking for ways to save energy and reduce their carbon footprint. Thus, this act as a major driver for the LED Light Engine Market.

Urbanization is a global trend that is leading to the growth of cities and urban areas. This is leading to an increased demand for lighting solutions in these areas. LED light engines are well-suited for use in urban areas due to their energy efficiency and long lifespan.

Governments around the world are promoting the adoption of LED lighting through various initiatives, such as subsidies, tax breaks, and regulations. These initiatives are helping to drive the growth of the LED light engine market.

LED technology is constantly evolving, leading to the development of more efficient and cost-effective LED light engines. These advancements are helping to drive the growth of the LED light engine market. Also, LED lighting is becoming increasingly popular in the automotive sector due to its energy efficiency, long lifespan, and ability to produce a wide range of colours. This is helping to drive the growth of the LED light engine market.

Businesses and consumers are increasingly focused on sustainability and environmental protection. LED light engines are a more sustainable option than traditional lighting sources, as they consume less energy and produce less waste. Thus, this acts as a driver for growth of the LED light engine market.

Growing demand for smart lighting: Smart lighting is a rapidly growing trend, and LED light engines are well-suited for use in smart lighting systems. LED light engines can be easily connected to smart home and building automation systems, which allows users to control and automate their lighting. This is contributing to the growth of the LED light engine market

Expanding application base: LED light engines are being used in a wide range of applications, including residential, commercial, industrial, and automotive. The expanding application base of LED light engines is a driving force behind the growth of the LED light engine market.

The prices of LED light engines have been falling steadily in recent years. This is making LED light engines more affordable and accessible to businesses and consumers. The falling prices of LED light engines is helping to drive the growth of the market. LED light engines are more energy-efficient than traditional lighting sources, such as incandescent and fluorescent bulbs. This is due to the fact that LEDs consume less power and last longer. As a result, there is a growth in LED Light Engine Market from businesses and consumers who are looking for ways to save energy and reduce their carbon footprint. For example, a recent study by the U.S. Department of Energy found that LED light engines can save businesses and consumers up to 75% on their lighting costs. This is a major driver of the growth of the LED light engine market.

Urbanization is a global trend that is leading to the growth of cities and urban areas. This is leading to an increased demand for lighting solutions in these areas. LED light engines are well-suited for use in urban areas due to their energy efficiency and long lifespan.

For example, a recent study by the World Bank found that urbanization is expected to increase by 2.5 billion people by 2050. This will lead to an increased demand for lighting solutions in urban areas, which will drive the growth of the LED light engine market.
Government initiatives to promote the adoption of LED lighting: Governments around the world are promoting the adoption of LED lighting through various initiatives, such as subsidies, tax breaks, and regulations. These initiatives are helping to drive the growth of the LED light engine market.

For example, the U.S. government has offered a number of incentives to businesses and consumers who adopt LED lighting. These incentives include tax breaks, rebates, and grants. These incentives have helped to drive the growth of the LED light engine market in the United States.

LED Light Engine Market Restraints
LED light engines are more expensive than traditional lighting sources, such as incandescent and fluorescent bulbs. This high initial cost can be a barrier to adoption for some businesses and consumers. LED light engines have a shorter lifespan than traditional lighting sources. This can lead to increased maintenance and replacement costs.

There is a growing availability of counterfeit LED light engines on the market. These counterfeit products are often of poor quality and can fail prematurely. Thus, this acts as a hinderance for the LED Light Engine Market.

LED light engine market is facing increasing competition from other lighting technologies, such as OLED and laser lighting. These technologies offer some advantages over LED light engines, such as improved efficiency and longer lifespan. The LED light engine market is facing regulatory challenges in some countries. For example, the European Union has implemented a number of regulations on LED light engines, such as the Energy Labelling Directive and the Eco-design Directive. These regulations are designed to improve the energy efficiency of LED light engines, but they can also make it more difficult for manufacturers to bring new products to market.
The LED light engine market is also facing trade tensions between the United States and China. The Trump administration has imposed tariffs on a number of Chinese products, including LED light engines. These tariffs have made it more expensive for businesses in the United States to buy LED light engines from China.

LED Light Engine Market Trend

The LED light engine market is witnessing a rising demand for smart lighting solutions that offer advanced control features, including dimming, colour changing, and integration with smart home systems. The global smart lighting market is projected to reach USD 27.2 billion by 2027, indicating a significant growth opportunity for LED light engine manufacturers.

There is an increasing emphasis on human-centric lighting solutions that mimic natural light patterns to enhance well-being, productivity, and comfort. LED light engines with tuneable white technology, allowing for adjustable colour temperature and intensity, are gaining traction in commercial and residential applications. These factors are expected to drive the LED Light Engine Market.

The horticultural sector is witnessing a rapid adoption of LED light engines for indoor farming and vertical gardening. LED-based horticultural lighting systems offer precise control over light spectra, enabling optimal plant growth and yield. The horticultural lighting market is projected to reach USD 8.6 billion by 2027, presenting a significant growth opportunity for LED light engine manufacturers and LED light engine market.

The global push towards energy efficiency and sustainability is driving the demand for LED light engines and LED light engine market. With governments worldwide implementing stringent regulations and energy efficiency standards, LED light engines are being widely adopted as a replacement for traditional lighting technologies, resulting in reduced energy consumption and lower carbon emissions.

LED Light Engine Market is witnessing advancements in miniaturization, enabling their integration into compact lighting fixtures and appliances. Additionally, manufacturers are focusing on customization options to cater to specific requirements of end-users, such as unique form factors, colour rendering capabilities, and compatibility with intelligent control systems.

The integration of LED light engines with Li-Fi (Light Fidelity) technology is gaining attention. Li-Fi utilizes LED light signals to transmit data, offering high-speed wireless communication and complementing existing Wi-Fi networks. The Li-Fi market is projected to reach USD 23.2 billion by 2028, presenting opportunities for LED light engine manufacturers to expand their product offerings. This is propelling the growth of the LED Light Engine Market.

The COVID-19 pandemic has heightened the demand for UV-C LED light engines for air and surface disinfection purposes. UV-C LED technology offers a chemical-free and energy-efficient alternative to traditional disinfection methods. The market for UV LED disinfection is expected to grow significantly in the coming years, driven by the need for improved hygiene and sanitization practices.
Companies operating in the LED light engine market are investing heavily in research and development activities to enhance product efficiency, durability, and performance. Advancements in LED chip technology, thermal management, and optics are expected to drive innovation and provide manufacturers a competitive edge.
LED Light Engine Market Regional Insights:
The report provides an in depth analysis of the growth potential of the LED Light Engine Market. According to the report the Asia-Pacific region is projected to be the fastest-growing market for LED light engines during the forecast period. This is due to the rapid industrialization and urbanization in the region, as well as the increasing government support for the adoption of LED lighting. China is the largest LED Light Engine Market in the Asia-Pacific region, followed by India and Japan. China is the largest market for LED light engines, accounting for a share of over 30% in 2021. The growth of the market in China is driven by the increasing demand for energy-efficient lighting solutions in the residential and commercial sectors.

North America is the second-largest LED Light Engine Market: North America is the second-largest market for LED light engines, accounting for a share of over 20% in 2021. The growth of the market in North America is driven by the increasing demand for energy-efficient lighting solutions in the commercial and industrial sectors.

The United States is the largest market for LED light engines in North America, followed by Canada and Mexico.
Europe is the third-largest market for LED light engines. The growth of the LED Light Engine Market in this region is driven by the increasing demand for energy-efficient lighting solutions in the commercial and residential sectors. Germany, France, and the United Kingdom are the largest markets for LED light engines in Europe.

The Latin America and Middle East & Africa (LAMEA) region is expected to be the slowest-growing LED Light Engine Market for LED light engines during the forecast period. This is due to the low penetration of LED lighting in the region. However, the increasing government initiatives to promote the adoption of LED lighting in the region are expected to drive the market in the coming years.
LED Light Engine Market Segment Analysis:
By Product Type: The LED Light Engine Market is segmented based on product type into LED light engine modules and LED light engine integrated luminaires. LED light engine modules accounted for the largest market share in 2021, with a value of USD 3.8 billion. These modules are widely used as standalone units, offering flexibility in lighting system design and maintenance.

By Installation Type: The market is segmented based on installation type into new installations and retrofit installations. New installations dominated the market in 2021, with a market value of USD 3.6 billion. The increasing focus on energy efficiency and sustainable lighting solutions in new construction projects has driven the demand for LED light engines in this segment.

By End-Use Industry: The LED Light Engine Market is segmented by end-use industry into residential, commercial, industrial, and others. The commercial sector held the largest market share in 2021, valued at USD 2.1 billion. The demand for LED light engines in commercial spaces, such as offices, retail stores, and hospitality establishments, is driven by the need for energy-efficient and aesthetically pleasing lighting solutions.

By Application: The LED Light Engine Market is segmented based on application into indoor lighting and outdoor lighting. Indoor lighting accounted for the major market share in 2021, with a value of USD 3.4 billion. The increasing adoption of LED light engines in residential and commercial buildings for general lighting purposes has contributed to the growth of this segment.

By Distribution Channel: The LED Light Engine Market is segmented by distribution channel into direct sales and indirect sales. Indirect sales, including distributors and online retail, dominated the market in 2021, with a market value of USD 4.7 billion. The widespread availability of LED light engines through various indirect sales channels has facilitated their accessibility to end-users.

By Region: The LED Light Engine Market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Asia Pacific held the largest market share in 2021, valued at USD 2.7 billion. The rapid industrialization, urbanization, and infrastructural development in countries like China, India, and Japan have fuelled the demand for LED light engines in this region.

By Power Range: The LED Light Engine Market is segmented based on power range into low power (<10W), medium power (10-100W), and high power (>100W). The medium power segment accounted for the largest market share in 2021, with a value of USD 2.8 billion. LED light engines in the medium power range are extensively used in various applications, including commercial lighting and outdoor lighting.

By Connectivity: The LED Light Engine Market is segmented based on connectivity into wired and wireless LED light engines. Wired LED light engines held the major market share in 2021, valued at USD 4.3 billion. However, the wireless LED light engine segment is expected to witness significant growth in the future, driven by the increasing adoption of smart lighting systems and IoT connectivity.

Among the various processes used for LED light engine manufacturing, the chip-on-board (COB) process has gained significant traction in recent years. This process involves mounting multiple LED chips directly on a single circuit board, resulting in compact and high-intensity lighting solutions. The residential sector is expected to be the largest LED light engines market during the forecast period. The automotive sector is expected to be the fastest-growing LED light engine market during the forecast period.
LED Light Engine Market Competitive Landscape:
The report provides a detailed overview of the competitive landscape in the LED Light Engine Market, highlighting key players and their strategies. Statistical data and market insights shed light on the market's competitive dynamics.

The LED Light Engine Market is dominated by prominent players such as Philips Lighting, OSRAM GmbH, Cree, Inc., General Electric Company, and Seoul Semiconductor Co., Ltd. These companies have established strong market positions and possess extensive product portfolios. They focus on continuous product innovation and strategic partnerships to strengthen their market presence.

In terms of market share, Philips Lighting held a significant position in the LED Light Engine Market, accounting for approximately 18% of the global market in 2021. The company's extensive product range, global distribution network, and strong brand recognition have contributed to its market leadership.

OSRAM GmbH is another major player in the LED Light Engine Market, holding a substantial market share. The company offers a wide range of LED light engines, catering to diverse applications and end-use industries. OSRAM GmbH focuses on technological advancements and collaborations to expand its market reach.

Cree, Inc., a leading player in the LED industry, has a strong presence in the LED Light Engine Market. The company is known for its high-performance LED products, emphasizing energy efficiency and durability. Cree, Inc. invests heavily in research and development to enhance its product offerings and stay at the forefront of LED technology. In 2022, Cree, Inc. announced the launch of its new LED light engine, which is designed to deliver superior performance and energy efficiency.

General Electric Company (GE) is also a key player in the LED Light Engine Market, leveraging its expertise in lighting and technology. GE offers a comprehensive range of LED light engines for various applications. The company's focus on sustainability and energy efficiency aligns with the market's growing demand for environmentally friendly lighting solutions.

Seoul Semiconductor Co., Ltd. is a prominent player in the LED Light Engine Market, known for its innovative LED technologies. The company emphasizes research and development to introduce cutting-edge products with enhanced performance and energy efficiency. Seoul Semiconductor Co., Ltd. also collaborates with industry partners to drive market growth.

In 2023, Seoul Semiconductor Co., Ltd. announced the acquisition of a leading LED light engine manufacturer, which will help the company to expand its product portfolio and strengthen its position in the market.

In addition to these major players, the LED Light Engine Market includes several other regional and local manufacturers competing based on price, product quality, and technological advancements. These players often specialize in niche segments and cater to specific customer requirements.

These companies are focusing on developing innovative LED light engines with enhanced features and benefits to meet the growing demand from end-users. They are also expanding their product portfolio to cater to the growing demand for LED light engines in a wide range of applications.

The LED light engine market is project to witness market growth during the forecast period. The market is driven by a number of factors, including increasing demand for energy-efficient lighting solutions, rising urbanization, and government initiatives to promote the adoption of LED lighting. The key players in the market are focusing on developing innovative LED light engines with enhanced features and benefits to meet the growing demand from end-users.
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LED Light Engine Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US $ 32.40 Bn.


Forecast Period 2023 to 2029 CAGR:
13.5%
Market Size in 2029:
US $ 78.62 Bn.


 Segments Covered:
by Product Type
1. LED light engine modules
2.LED light engine integrated luminaires


by Installation Type
1.New installations
2.Retrofit installations


by End-Use Industry
1.Residential
2.Commercial
3.Industrial
4.Others


by Application
1.Indoor lighting
2.Outdoor lighting


by Distribution Channel
1.Direct sales
2.Indirect sales


by Power Range
1.Low power (<10W)
2.Medium power (10-100W)
3.High power (>100W)


by Connectivity
1.Wired
2.Wireless



LED Light Engine Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
LED Light Engine Market Key Players
The report has in detail information about the Strategies adopted by the following key companies to sustain and grow in the market. These LED Light Engine Manufacturers covered in the report are selected on the basis of certain criteria.

1.Cree, Inc. (Durham, North Carolina, United States)
2.Seoul Semiconductor Co., Ltd. (Gyeonggi-do, South Korea)
3. Nichia Corporation (Tokushima, Japan)
4.Samsung Electronics Co., Ltd. (Suwon, South Korea)
5.Osram Licht AG (Munich, Germany)
6. Acuity Brands, Inc. (Atlanta, Georgia, United States)
7. Eaton Corporation plc (Dublin, Ireland)
8. GE Lighting (Fairfield, Connecticut, United States)
9.Philips Lighting (Amsterdam, Netherlands)
10.Zumtobel Group AG (Lustenau, Austria)
11. AEON Lighting (Shanghai, China)
12.FSL Corporation (Taipei, Taiwan)
13.Lextar Electronics Corporation (New Taipei City, Taiwan)
14.Lite-On Opto Technology Corporation (Taipei, Taiwan)
15.Opple Lighting Co., Ltd. (Guangzhou, China)
16.Panasonic Corporation (Osaka, Japan)
17.Seoul Viosys Co., Ltd. (Gyeonggi-do, South Korea)
18.USHIO Corporation (Tokyo, Japan)
19.Yangzhou Everlight Electronics Co., Ltd. (Yangzhou, China)
20. Eaton (India) Pvt. Ltd. (Noida, India)
21.Feller (Brazil) Ind. e Com. Ltda. (São Paulo, Brazil)
22.ITL Lighting (São Paulo, Brazil)
23.Lamda Electric (Argentina) S.A.I.C.I.F. y A. (Buenos Aires, Argentina)
24. Megaman (Thailand) Co., Ltd. (Bangkok, Thailand)
25.Osram Opto Semiconductors (India) Private Limited (Gurgaon, India)
26.Philips Lighting (India) Private Limited (Gurgaon, India)
27.Zumtobel Group (India) Private Limited (Gurgaon, India)

FAQs:

1. What are the growth drivers for the LED Light Engine Market?
Ans: Businesses and consumers are increasingly focused on sustainability and environmental protection which acts as a driver for the LED Light Engine Market

2. What is the major restraint for the LED Light Engine Market growth?
Ans: Availability of counterfeit products is one of the major restraints for the LED Light Engine Industry.

3. Which region is expected to lead the global LED Light Engine Market during the forecast period?
Ans: Asia-Pacific region is projected to be the fastest-growing market for LED light engines during the forecast period

4. What is the projected market size & growth rate of the LED Light Engine Market?
Ans: The projected market size for the LED Light Engine Market by 2029 is 78.62 Bn USD with CAGR of 13.5%

5. What segments are covered in the LED Light Engine Market report?
Ans: Segmentation based on application, distribution channel and region are included in the LED Light Engine Market Report.