Artificial lights are electric lights that provide illumination in indoor areas where sunlight is inadequate or not desired. Artificial lights include various light-emitting diode (LED) bulbs, halogen lights, fluorescent lights, and incandescent bulbs. LED lights are becoming increasingly popular due to their energy efficiency and lifespan that is much longer than other lighting technologies. Artificial lights are used in homes, offices, streets, shops, public places, and other indoor areas. Rapid urbanization and infrastructure development is increasing construction activities around the world, which is the primary driver boosting demand for artificial lights.
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 players operating in the artificial lights market are Signify Holding, Osram GmbH, GE Lighting, Acuity Brands, Inc., and Eaton Corporation.
Growing demand: Rapid infrastructure development and construction boom in emerging economies of Asia Pacific and Middle East is driving demand. Also, replacement of traditional lights with energy efficient LED lights is boosting market growth.
Technological advancement: Continuous innovation is leading to development of smart and connected lights with integration of sensors, wireless technology and automation. Launch of lights with adjustable color temperature and lighting patterns is gaining popularity.
Market Trends
Transition to LED lights: LED lights are increasingly replacing traditional incandescent and CFL bulbs due to long lifespan of over 25,000 hours and high energy efficiency. This is a major market trend.
Adoption of smart lights: Smart lights that can be controlled via mobile apps or voice assistants are gaining traction. Features like dimming, scheduling and grouping lights are enhancing convenience.
Market Opportunities
Commercial sector expansion: Growing construction of malls, shops, offices and warehouses in developing nations will spur opportunities.
Rising focus on smart cities: Integration of IoT based streetlights, smart indoor lighting in public infrastructure will open new areas of growth.
Impact of COVID-19 on Artificial Lights Market Growth:
The COVID-19 pandemic has significantly impacted the artificial lights market. During the initial outbreak and lockdowns imposed across regions, the demand and sales of artificial lights declined sharply. Restrictions on construction activities and shutdowns of commercial establishments like offices, malls, hospitals led to reduction in new installations of lighting fixtures. Supply chain disruptions also posed challenges in terms of raw material procurement and product delivery.
It is expected that increased focus on hygiene, social distancing and safety will boost demand for certain types of artificial lights like UV disinfection lamps in the coming years. While residential segment sales increased during lockdowns, commercial and industrial segment demand is expected to take longer to recover fully. Establishments are installing more efficient and powerful lights to enhance safety. Rising health issues have also highlighted importance of proper lighting to maintain well-being.
Geographical Regions with Highest Value for Artificial Lights Market:
North America and Asia Pacific region currently hold the largest shares in the global artificial lights market in terms of value. Within North America, the United States accounts for majority share due to highly developed commercial and residential construction sector. stringent lighting efficiency legislations and presence of leading lighting brands. In Asia Pacific, China dominates with one of the largest manufacturing bases and ongoing infrastructure projects.
Fastest Growing Region for Artificial Lights Market:
The Middle East and Africa region is expected to witness fastest growth in the artificial lights market during the forecast period. Major ongoing construction projects related to smart cities, commercial buildings and transport infrastructure will drive considerable lighting installations. Rising population and economy along with government focus on energy conservation are boosting adoption of LED based efficient lighting solutions across the region. On the other hand, countries in Latin America are also projected to show above average growth supported by investments in upgrading lighting infrastructure and expanding residential sectors.
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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. (https://www.linkedin.com/in/ravina-pandya-1a3984191)