Smart Buildings To Drive LED Market

An increasing demand for energy-efficient lighting, a rising number of smart city projects, and overall infrastructure development are driving the global LED lighting market, says a report by Frost & Sullivan. The market is estimated to reach $82 billion by 2026 from $67.7 billion in 2019, at a compound annual growth rate (CAGR) of 2.8 per cent. However, with the COVID-19 pandemic, the industry is likely to experience varied impacts across regions due to discrepancies in containment measures and lockdown implementation. Even with the partial ease in lockdowns and a resumption of manufacturing, the market will need a couple of years to recover and reach the same level as before the crisis. "Smart buildings will accelerate the adoption of smart lighting more than any other segment. The revitalization of cities will also provide the much-needed impetus for the installation of smart lighting," says Dennis Marcell Victor, energy and environment research analyst at Frost & Sullivan. "Government rebates, savings on disposal costs, improved performance of workers, and limitless Internet of Things (IoT) applications for LED lighting present a good business case for LEDs to be adopted across applications." As well, Lighting-as-a-Service (LaaS) will see higher adoption and usher in a new business model while driving other applications such as connected lighting and facility management. It is expected to reduce the capital expenditure of the consumer, with service providers bearing upfront costs.