The Europe LED lighting market size is anticipated to reach USD 13,177.5 million by 2025, registering a CAGR of 16.0% from 2019 to 2025, according to a new report by Grand View Research, Inc. Higher energy-efficiency and greater life span of LED lights are the key factors augmenting the European market. Incentives schemes implemented by various governments and regulatory authorities are encouraging the substitution of conventional lighting systems such as incandescent bulbs and CFLs with LED lights.
The continuous depletion of traditional energy sources and the growing consensus on global warming have been prompting various governments and other regulatory authorities to intervene in the energy sector. A majority of the government regulatory bodies in Western Europe have drafted stringent regulations against the large-scale use of conventional incandescent lamps. For instance, the European Union has mandated the gradual substitution of incandescent, Halogen, and other inefficient lamps with LED lights from 2013.
The introduction of Standard Deviation Color Matching (SDCM) control, advanced energy-saving capabilities, and the lower overall cost of operation of LED lights in the long run as compared to the conventional CFL lamps are expected to fuel the demand for LED lamps across the region. The introduction of smart/connected lighting and its widespread applications for residential, commercial, and industrial purposes are further driving the market growth over the forecast period.
The LED market holds great potential in the regional market as all the countries in the European Union have adopted the EU’s program for the development of renewable resources. Under this program, the countries shall aim to reduce CO2 emission by 20%, fulfilling 20% of energy demands using renewable resources, and reduce energy consumption by 20% by 2020. In order to achieve this target, the countries are evaluating different sustainability options, including LED lights. Prominent economies, such as Italy and Germany, have begun replacing street lights with LED lighting solutions.
Domestic LED lighting manufacturers are anticipated to benefit from the stringent EU regulations and safety standards, as most of the Chinese unbranded LED lighting manufacturers fail to comply with the norms, and China is expected to witness temporary shortfall in exports to European countries in next few years. Additionally, companies operating in Europe, such as Signify Holdings and Osram GmbH, offer strong competition to companies around the world with their technological patents, brand positioning, and extensive client base. Companies are also diversifying their LED business into unconventional sectors such as horticulture and healthcare. Horticulture lighting is gaining momentum owing to increasing demand from North America region as few states have legalized Marijuana and the producers are using Horticultural LEDs for improving crop production.
View summary of this report, click the link below:
Further key findings from the report suggest:
- Western Europe emerged as the largest market for LED lighting in 2018 and accounted for nearly 67% market share
- In terms of design type, the demand for luminaires segment is anticipated to register a CAGR of 16.5% from 2019 to 2025
- In terms of end use, the government segment is anticipated to register the highest CAGR owing to various lighting replacement projects undertaken by various countries such as Romania, Italy, Germany, and U.K.
- The European regional market is currently dominated by prominent players such as Signify Holdings, Osram GmbH, and Lumileds, among others. Developing innovative products has been the key strategy adopted by market players to gain a competitive advantage.