The Future of LED Lighting Looks Bright
Despite the challenges of 2022, the future of LED lighting looks bright. The LED industry is expected to recover in 2023, driven primarily by a resurgence in the LED lighting market.
The global LED market faced a challenging year in 2022, with a decline in demand leading to a downturn in both LED lighting and video wall sectors, according to market research firm TrendForce.
Oversupply of LED chips resulted in a continuous drop in prices, contributing to a significant 22.9% annual decrease in the global LED chips market, which shrank to just US$2.78 billion.
TrendForce survey data indicated a growing trend among LED supply chain companies toward raising prices. This trend is expected to persist due to the high demand for LED chips. Many companies see this price adjustment to mitigate losses and actively reduce orders with low gross margins. LED commercial lighting is expected to lead the comeback in the broader LED lighting market.
As a result, the global LED lighting market is expected to grow at a compound annual growth rate (CAGR) of 11.35% from 2023 to 2028.
The market is segmented by product type, application, end-use, and region. LED luminaires are anticipated to dominate the market due to their extensive use in commercial and residential applications. Indoor applications, including homes and offices, are expected to have the largest market share. Residential use of LED lights is also projected to contribute significantly to market growth.
The LED lighting market is dynamic and poised for significant growth in the coming years. With advancing technology, supportive regulations, and growing consumer demand, LED lighting is set to illuminate the future of the lighting industry.