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Rising Demand for Energy-efficient and Sustainable Lighting to Boost Demand from Global Architectural LED Products Market

Blog Description

Architectural LED lights find application for illuminating monuments, museums, bridges, and residential and commercial buildings. These lights can also be deployed to beautify an architectural structure. In the last couple of years, the market for architectural LED products has witnessed substantial growth owing to the surging demand for efficient displays, lighting, and fixtures in residential as well as commercial buildings. The market has also gained impetus from the rising awareness among people about the benefits of opting for energy-efficient lighting solutions. 

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According to a report published by Persistence Market Research, the global market for architectural LED products is expected to reach US$10.7 bn by 2021, rising at a CAGR of 17.9% between 2015 and 2021. The valuation of the market stood at US$3.4 bn in 2014. In terms of volume, the market for architectural LED products reported 25.5 million units in 2014.

Favorable Government Regulations to Boost Market

National governments in countries such as Thailand, China, Brazil, and the U.S. have implemented stringent regulations mandating the usage of LED lighting and forcing fixture manufacturers to comply with minimum standards of lighting efficiency. Additionally, the use of incandescent lighting products is banned in many countries in order to ensure energy efficiency and to reduce the carbon footprint. This, in turn, has encouraged construction enterprises to deploy LED lighting systems complying with regulations laid down by governments across nations, thus fuelling demand from the global market for LED products.

Market to Gain Impetus from Rapid Development of Cities

The rising demand for architectural lighting coincides with the rapid development of cities and lighting solutions to achieve innovative and energy-efficient lighting solutions. With people around the world realizing the benefits of sustainable lighting designs, the market for architectural LED products is expected to grow at an impressive rate. Sustainable lighting offers environmental benefits as well as economic advantages to its end users. A focus on sustainability is therefore considered essential to minimize energy consumption and enhance the overall quality of living of the users. This has been the prime factor steering the smooth transition from electrical lighting to LED technology.

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Conventional LED Products to Witness Rising Demand

Based on type, the two distinct types of architectural LEDs available in the market at present are solar LED and conventional LED. Of these, the market for conventional LED witnesses the maximum demand. The market segment stood at US$3.2 bn in 2012. The rising demand for products such as LED lamps, strips, and linear products is expected to substantially boost the demand from the conventional lighting market segment.

Rising Demand for Wall Washing Applications to Boost Architectural LED Products Market         

The demand for architectural LED products is observed to majorly arise in wall washing applications. The segment was valued at US$1.4 bn in 2014 and was projected to reach US$1.6 bn by the end of 2015. With the increasing construction of contemporary architecture, public culture buildings, and museums, the demand for architectural LED products for wall washing is anticipated to increase at a rapid pace in the near future. Regionally, Asia Pacific is likely to exhibit the most lucrative prospects for the market for architectural LED products in the near future.