Global Energy Efficient Lighting Technology Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Product Type;
Incandescent Lamp, Light Emitting Diode, Arc Lamp, and Gas Discharge Lamps.By Application;
Commercial , Residential, and Government.By Correlated Color Temperature;
2700K-3000K, 3500K – 4000K, 4000K- 5000K, 5000K-6500K, and More Than 6500K.By Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031).Introduction
Global Energy Efficient Lighting Technology Market (USD Million), 2021 - 2031
In the year 2024, the Global Energy Efficient Lighting Technology Market was valued at USD 227,929.14 million. The size of this market is expected to increase to USD 395,722.43 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 8.2%.
The global energy-efficient lighting technology market is experiencing significant growth, driven by increasing awareness of environmental sustainability and the need for energy conservation. Energy-efficient lighting technologies, including LED, CFL, and OLED, offer substantial energy savings compared to traditional incandescent and halogen lighting. These technologies not only reduce electricity consumption but also lower greenhouse gas emissions, aligning with global efforts to combat climate change. The adoption of energy-efficient lighting is further encouraged by stringent government regulations and policies aimed at promoting energy efficiency and reducing carbon footprints.
Technological advancements in the energy-efficient lighting sector have also played a crucial role in market expansion. Innovations such as smart lighting systems, which integrate with IoT (Internet of Things) devices, allow for more precise control and automation of lighting, enhancing energy savings and user convenience. Additionally, the development of more efficient and cost-effective lighting solutions has made energy-efficient lighting more accessible to a broader range of consumers and industries. This has spurred demand across residential, commercial, and industrial sectors, further driving market growth.
The market is also bolstered by growing investments in infrastructure development and urbanization, particularly in emerging economies. As cities expand and modernize, there is an increasing need for energy-efficient lighting solutions to support sustainable urban development. Moreover, the rising trend of green building certifications and sustainable construction practices is propelling the demand for energy-efficient lighting. As a result, the global energy-efficient lighting technology market is poised for continued growth, supported by a combination of regulatory frameworks, technological advancements, and increasing consumer awareness of environmental issues.
Global Energy Efficient Lighting Technology Market Recent Developments
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In June 2021, Acuity Brands acquired Bluefrog Robotics, adding AI-powered energy management capabilities to their lighting solutions.
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In April 2023, Signify (formerly Philips Lighting) launched a new line of smart LED lighting designed for energy savings in commercial spaces.
Segment Analysis
The Global Energy Efficient Lighting Technology Market has been segmented by Product Type, Application, Correlated Color Temperature and Geography. In terms of product types, the market includes a range of technologies such as incandescent lamps, light-emitting diodes (LEDs), arc lamps, and gas discharge lamps. Incandescent lamps, once dominant, are gradually being phased out in favor of more energy-efficient alternatives like LEDs, which offer longer lifespans and significant energy savings. Gas discharge lamps and arc lamps are commonly used in specialized applications where high-intensity lighting is required, such as in sports arenas and large industrial spaces.
In terms of applications, the market is segmented into commercial, residential, and government sectors. Commercial applications include office buildings, retail spaces, and hospitality venues, where energy-efficient lighting solutions not only reduce operational costs but also enhance the overall aesthetic appeal and functionality of spaces. In residential settings, energy-efficient lighting technologies are favored for their cost-effectiveness and longevity, providing homeowners with sustainable lighting options. Government sectors globally are increasingly adopting energy-efficient lighting solutions to meet sustainability targets and reduce carbon footprints across public infrastructure and facilities.
Geographically, the market spans North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. Each region exhibits varying adoption rates and regulatory landscapes influencing the deployment of energy-efficient lighting technologies. North America and Europe are early adopters, driven by stringent energy efficiency regulations and incentives. In contrast, Asia Pacific is a rapidly growing market due to urbanization, infrastructure development, and increasing awareness of energy conservation. Middle East and Africa, as well as Latin America, are also witnessing increased adoption, supported by government initiatives and investments in sustainable development.
Global Energy Efficient Lighting Technology Segment Analysis
In this report, the Global Energy Efficient Lighting Technology Market has been segmented by Product Type, Application, Correlated Color Temperature and Geography.
Global Energy Efficient Lighting Technology Market, Segmentation by Product Type
The Global Energy Efficient Lighting Technology Market has been segmented by Product Type into Incandescent Lamp, Light Emitting Diode, Arc Lamp and Gas Discharge Lamps.
Incandescent lamps have historically been one of the most common types of lighting, but they are gradually being phased out in many regions due to their low energy efficiency. They operate by heating a filament inside the bulb to produce light, but a significant portion of the energy is wasted as heat rather than light. As a result, incandescent lamps have largely been replaced by more energy-efficient alternatives such as LEDs.
LEDs have revolutionized the lighting industry with their high energy efficiency, long lifespan, and versatility. LEDs produce light by passing an electric current through a semiconductor material, emitting photons which create visible light. They consume significantly less energy than incandescent and fluorescent lamps, and are available in various colors and brightness levels. LEDs are widely used in residential, commercial, and industrial applications due to their durability and environmental benefits.
Arc lamps utilize an electric arc between two electrodes to produce light. These lamps are often used in specialized applications requiring high-intensity lighting, such as in projection systems, searchlights, and certain industrial processes. Arc lamps can produce very bright light efficiently, making them suitable for applications where a strong light source is necessary.
Gas discharge lamps operate by passing an electric current through a gas or vapor, causing it to emit light. Common types include fluorescent lamps and high-intensity discharge (HID) lamps like mercury vapor, metal halide, and sodium vapor lamps. Fluorescent lamps are known for their efficiency and are widely used in residential, commercial, and institutional settings. HID lamps are used for outdoor lighting, stadium lighting, and other high-intensity applications where robust lighting solutions are required.
Global Energy Efficient Lighting Technology Market, Segmentation by Application
The Global Energy Efficient Lighting Technology Market has been segmented by Application into Commercial, Residential and Government.
Commercial applications encompass a wide range of settings including office buildings, retail stores, hotels, restaurants, and other business establishments. Energy-efficient lighting solutions are highly favored in commercial spaces due to their ability to reduce operating costs over time. LED lighting, in particular, is widely adopted in commercial applications because of its energy efficiency, long lifespan, and lower maintenance requirements. Moreover, in commercial settings, lighting plays a crucial role in creating an inviting atmosphere for customers, enhancing product visibility, and improving overall employee productivity and well-being.
In residential settings, energy-efficient lighting technologies are increasingly popular among homeowners seeking to reduce energy consumption and lower electricity bills. LED lighting has become the preferred choice for residential lighting due to its energy efficiency, versatility in design (offering various shapes and colors), and long lifespan. LEDs not only provide cost savings but also contribute to creating a comfortable and aesthetically pleasing living environment. Residential applications of energy-efficient lighting include indoor lighting (such as kitchen, living room, and bedroom lighting) as well as outdoor lighting (such as garden lights, pathway lights, and security lighting).
Governments and public sectors globally are significant adopters of energy-efficient lighting technologies as part of their sustainability and energy conservation initiatives. This segment includes applications in public infrastructure such as street lighting, municipal buildings, schools, hospitals, and public parks. Energy-efficient lighting solutions help governments and public institutions reduce their carbon footprint, comply with energy efficiency regulations, and lower operational costs in the long term. LED lighting, in particular, is favored for its durability, low maintenance requirements, and ability to enhance safety and visibility in public spaces.
Global Energy Efficient Lighting Technology Market, Segmentation by Correlated Color Temperature
The Global Energy Efficient Lighting Technology Market has been segmented by Correlated Color Temperature into 2700K-3000K, 3500K 4000K, 4000K- 5000K, 5000K-6500K and More Than 6500K.
This CCT range produces a warm and cozy light similar to traditional incandescent bulbs. It is commonly used in residential settings such as living rooms, bedrooms, and dining areas to create a relaxed and comfortable ambiance. Warm white lighting is also preferred in hospitality environments like hotels and restaurants to enhance guest experience. Neutral white light falls in between warm and cool tones, offering a balanced illumination that is neither too warm nor too cool. It is suitable for a variety of applications including offices, retail stores, and educational institutions. Neutral white lighting provides good color rendering and is often chosen for tasks requiring accurate color perception.
Cool white light provides a bright and energetic illumination that simulates daylight conditions. It is commonly used in commercial and industrial settings such as supermarkets, warehouses, and manufacturing facilities where visibility and alertness are important. Cool white lighting is also favored in healthcare facilities and educational environments to promote concentration and productivity.
Daylight or daylight white light closely mimics natural daylight with a crisp and clear appearance. It is ideal for applications where excellent color rendering and visual acuity are critical, such as art galleries, design studios, and medical examination rooms. Daylight white lighting is also used in outdoor settings, security lighting, and sports facilities to ensure optimal visibility and safety. Lighting with a CCT greater than 6500K produces a very cool and bluish-white light, often referred to as cool daylight. It is used in specialized applications where maximum brightness and visibility are required, such as outdoor floodlights, stadium lighting, and some industrial processes.
Global Energy Efficient Lighting Technology Market, Segmentation by Geography
In this report, the Global Energy Efficient Lighting Technology Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Global Energy Efficient Lighting Technology Market Share (%), by Geographical Region, 2024
North America is a mature market for energy-efficient lighting technologies, driven by stringent energy efficiency regulations, government incentives, and a strong emphasis on sustainability. LED lighting dominates the market here due to its energy-saving potential and long lifespan. The commercial sector, including offices, retail spaces, and hospitality, is a significant adopter of energy-efficient lighting solutions. Additionally, residential adoption is growing as consumers seek to reduce energy costs and environmental impact. Key players in this region focus on technological advancements and smart lighting solutions to cater to diverse customer needs.
Europe is a leading market for energy-efficient lighting technologies, characterized by comprehensive regulations promoting energy efficiency and carbon reduction targets. The transition from traditional lighting technologies to LEDs is well-established across residential, commercial, and industrial sectors. Government initiatives and subsidies further accelerate adoption, particularly in public lighting and municipal projects. The market also sees increasing demand for smart lighting systems integrated with IoT technologies to enhance energy management and operational efficiency.
Asia Pacific represents a rapidly growing market for energy-efficient lighting technologies, fueled by urbanization, infrastructure development, and increasing awareness of energy conservation. Countries like China, India, and Japan are major contributors to market growth, driven by government initiatives to reduce energy consumption and carbon emissions. LED lighting dominates the region due to its cost-effectiveness and suitability for diverse applications from residential buildings to large-scale industrial complexes. The market is competitive with a mix of local and global players expanding their product offerings and manufacturing capabilities.
The Middle East and Africa region is witnessing increasing adoption of energy-efficient lighting technologies, supported by initiatives to improve energy efficiency and sustainability across sectors. LED lighting is gaining traction in urban development projects, commercial buildings, and public infrastructure due to its energy-saving benefits and long-term cost-effectiveness. Government-led programs and investments in smart city projects further drive market growth, particularly in urban centers and emerging economies.
Latin America is a growing market for energy-efficient lighting technologies, driven by rising energy costs, environmental concerns, and government policies promoting energy efficiency. LED adoption is on the rise across residential, commercial, and industrial sectors, supported by incentives and regulations aimed at reducing electricity consumption and greenhouse gas emissions. The region's market dynamics vary with economic conditions and infrastructure development, but there is a growing awareness of the benefits of energy-efficient lighting solutions among consumers and businesses alike.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Energy Efficient Lighting Technology Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers
- Energy efficiency regulations
- Cost savings on electricity
- Technological advancements
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Environmental sustainability - Environmental sustainability refers to the responsible use of resources to maintain ecological balance and ensure the well-being of current and future generations. In the context of energy-efficient lighting technologies, sustainability plays a crucial role in mitigating environmental impacts associated with energy consumption and lighting infrastructure.
Energy-efficient lighting technologies such as LEDs contribute significantly to environmental sustainability by reducing energy consumption. LEDs consume much less electricity than traditional incandescent and fluorescent bulbs, leading to lower greenhouse gas emissions from power plants.
The longevity of energy-efficient lighting solutions contributes to environmental sustainability by reducing waste. LEDs, for example, have a significantly longer lifespan compared to traditional bulbs, which means fewer bulbs need to be manufactured, transported, and disposed of over time.
Restraints
- Initial high costs of LED technology
- Lack of consumer awareness
- Regulatory compliance challenges
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Supply chain disruptions - Supply chain disruptions can significantly impact the global energy-efficient lighting technology market, affecting various aspects from manufacturing to distribution and installation. These disruptions can arise due to a range of factors and pose challenges to the industry's growth and stability.
Natural disasters such as earthquakes, hurricanes, or floods can disrupt manufacturing facilities and suppliers located in affected regions. For instance, if a key component supplier of LED chips or drivers is located in an area prone to natural disasters, production delays and shortages can occur, affecting the availability of energy-efficient lighting products in the market.
Geopolitical tensions and trade disputes can lead to supply chain disruptions by affecting international trade routes, tariffs, and import/export regulations. Changes in trade policies or tariffs on components sourced from specific countries can disrupt supply chains, increase costs, and impact product availability and pricing in the energy-efficient lighting market.
Opportunities
- Emerging markets
- Growth in smart city initiatives
- Increasing adoption in residential sector
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Demand for connected lighting solutions - The demand for connected lighting solutions is driven by the convergence of technological advancements, energy efficiency goals, and the growing trend towards smart and sustainable infrastructure. Connected lighting refers to systems where lighting fixtures are integrated with sensors, controls, and communication technologies to enable advanced functionality and automation.
Connected lighting systems, such as those utilizing LED technology and IoT (Internet of Things) sensors, can optimize energy consumption by adjusting light levels based on occupancy, daylight levels, and user preferences.
Connected lighting plays a crucial role in smart building initiatives, where it integrates with other building systems such as HVAC (Heating, Ventilation, and Air Conditioning) and security systems.
Competitive Landscape Analysis
Key players in Global Energy Efficient Lighting Technology Market include;
- Apple
- Bajaj Electricals Ltd
- Bridgelux Inc.
- Cooper Lighting
- Cree Inc.
- Digital Lumens, Inc.
- Eaton
- GE Lighting
- LIGMAN Lighting Co., Ltd
- Nichia Corporation
- Osram
- Royal Philips Electronics
- Toshiba Lighting & Technology Corporation
- Zumtobel Group AG
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Product Type
- Market Snapshot, By Application
- Market Snapshot, By Correlated Color Temperature
- Market Snapshot, By Region
- Global Energy Efficient Lighting Technology Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Energy efficiency regulations
- Cost savings on electricity
- Technological advancements
- Environmental sustainability
- Restraints
- Initial high costs of LED technology
- Lack of consumer awareness
- Regulatory compliance challenges
- Supply chain disruptions
- Opportunities
- Emerging markets
- Growth in smart city initiatives
- Increasing adoption in residential sector
- Demand for connected lighting solutions
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Global Energy Efficient Lighting Technology Market, By Product Type, 2021 - 2031 (USD Million)
- Incandescent Lamp
- Light Emitting Diode
- Arc Lamp
- Gas Discharge Lamps
- Global Energy Efficient Lighting Technology Market, By Application, 2021 - 2031 (USD Million)
- Commercial
- Residential
- Government
- Global Energy Efficient Lighting Technology Market, By Correlated Color Temperature, 2021 - 2031 (USD Million)
- 2700K-3000K
- 3500K – 4000K
- 4000K- 5000K
- 5000K-6500K
- More Than 6500K
- Global Energy Efficient Lighting Technology Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Global Energy Efficient Lighting Technology Market, By Product Type, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- Apple
- Bajaj Electricals Ltd
- Bridgelux Inc.
- Cooper Lighting
- Cree Inc.
- Digital Lumens, Inc.
- Eaton
- GE Lighting
- LIGMAN Lighting Co., Ltd
- Nichia Corporation
- Osram
- Royal Philips Electronics
- Toshiba Lighting & Technology Corporation
- Zumtobel Group AG
- Company Profiles
- Analyst Views
- Future Outlook of the Market