Guidehouse Insights Estimates Global Market for Lighting in Commercial Buildings Will Grow at a Compound Annual Growth Rate of 2.5% Through 2031
Market drivers include lighting efficiency regulations and energy cost savings
September 15, 2022 – Boulder, Colo. – A new report from Guidehouse Insights analyzes of the global market for lighting in commercial buildings.
The performance of LED lighting products has improved dramatically over the past 15 years. Simultaneously, prices have declined, making the financial case for LED lighting compelling and leading to widespread adoption in commercial buildings. According to a new report from Guidehouse Insights, because of anticipated increases in LED shipments between 2022 and 2031, global lamp and luminaire revenue is expected to grow modestly, at a 2.5% compound annual growth rate (CAGR).
“Standard market forces—the confluence of LED products’ high level of performance and relatively low cost with increasing energy prices and concerns about the environmental impacts of building operations—are sufficient to increase LED adoption,” says Wendy Davis, senior research analyst with Guidehouse Insights. “Though LED lighting systems have become the default choice for new construction and retrofit lighting installations, a sizable global installed base of legacy lighting products remains, fostering continued non-LED lamp sales for replacement of failed lamps.”
Recently, government interventions, including lighting efficiency regulations and financial subsidies, have been critical drivers of LED market penetration. Because LED lamps and luminaires are long-lasting, increasing market penetration of this technology is slowing market growth, according to the report.
The report, Market Data: Energy Efficient Lighting for Commercial Markets, examines the global market for energy efficient lighting in commercial buildings (office, retail, education, healthcare, hotels & restaurants, institutional/assembly, warehouse, and transport). Market trends, drivers, and barriers are explored, with particular emphasis on the changing regulations affecting the lighting industry. Global market projections for lamp and luminaire unit shipments and revenue, segmented by lamp type (incandescent, halogen, T8 and T5, T12, CFL and miscellaneous fluorescent, high intensity discharge, and LED), construction type (new construction, retrofits, and failed lamp replacement), and region (North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa), extend through 2031. An executive summary of the report is available for free download on the Guidehouse Insights website.