As vaccination coverage increases in various countries, economies worldwide begin to recuperate. Since 1Q21, the LED general lighting market has witnessed a strong recovery. TrendForce estimates that the global LED lighting market size will reach USD 38.199 billion in 2021 with a YoY growth rate of 9.5%.
The following four factors have made the general lighting market thrive:
1. With increasing vaccination rates worldwide, economic recoveries have emerged; Recoveries in the commercial, outdoor, and engineering lighting markets are particularly fast.
2. Rising prices of LED lighting products: As raw material costs rising, lighting brands businesses continue raising product prices by 3%–15%.
3. Along with governments’energy conservation and carbon reduction policies targeting carbon neutrality, LED-based energy conservation projects have kicked off, thereby stimulating growth in LED lighting penetration. As TrendForce indicates, market penetration of LED lighting will reach 57% in 2021.
4. The pandemic has prompted LED lighting companies to shift to produce lighting fixtures with digitalized smart dimming and controllable functions. In the future, the lighting sector will focus more on product value added by the systemization of connected lighting and human centric lighting (HCL).