The Solid-State and Other Energy-Efficient Lighting Market size was estimated at USD 174.41 billion in 2023 and is projected to reach USD 243.52 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 4.70% during the forecast period (2024-2030).

Solid-State and Other Energy-Efficient Lighting Market

Market Summary

The solid-state and other energy-efficient lighting market represents a transformative segment within the semiconductor and electronics industry, characterized by the widespread adoption of advanced lighting technologies that offer superior energy efficiency, longer operational life, and enhanced environmental benefits compared to traditional lighting solutions. This market is primarily driven by innovations in light-emitting diode (LED) technology, which dominates the sector, alongside other efficient alternatives such as organic light-emitting diodes (OLEDs) and light-emitting capacitors (LECs). Governments and regulatory bodies across the globe are implementing stringent energy efficiency standards and promoting sustainable practices, which significantly bolster the demand for these lighting solutions. The transition from conventional incandescent and fluorescent lighting to solid-state lighting is evident across residential, commercial, industrial, and outdoor applications, reflecting a broad-based shift towards energy conservation and reduced carbon footprints. Key industry participants include established electronics giants and specialized lighting firms that continuously invest in research and development to enhance product performance, reduce costs, and introduce smart lighting capabilities. The integration of Internet of Things (IoT) technology and intelligent control systems is further expanding the functionality and appeal of energy-efficient lighting, enabling features such as adaptive lighting, remote management, and energy usage analytics. As urbanization accelerates and infrastructure development projects multiply, particularly in emerging economies, the demand for efficient, reliable, and sustainable lighting solutions is expected to remain robust, positioning this market for ongoing evolution and growth.

Key Highlights

The solid-state and energy-efficient lighting market is distinguished by several key highlights that underscore its dynamic nature and critical importance. LED technology remains the cornerstone of this market, acclaimed for its exceptional energy efficiency, which can reduce electricity consumption for lighting by up to 80% compared to traditional alternatives, alongside a significantly longer lifespan that minimizes maintenance and replacement costs. The rapid decline in the prices of LED components over the past decade has been a major catalyst for market penetration, making these solutions economically viable for a broad spectrum of consumers and businesses. Another prominent highlight is the escalating integration of smart lighting systems, which leverage connectivity, sensors, and software to provide customizable lighting environments, enhance user convenience, and contribute to energy savings through automated controls and data-driven insights. Environmental regulations and sustainability initiatives worldwide, such as the phasing out of inefficient lighting technologies, continue to propel market adoption. Furthermore, advancements in materials science and semiconductor manufacturing have led to improvements in color rendering, luminosity, and thermal management, enhancing the performance and application scope of energy-efficient lighting. The market is also witnessing increased investment in human-centric lighting, which aims to align artificial lighting with natural circadian rhythms to improve health, well-being, and productivity in indoor settings. These factors collectively highlight a market that is not only growing but also innovating rapidly to meet diverse and evolving consumer and industrial needs.

Drivers, Opportunities & Restraints

The growth of the solid-state and energy-efficient lighting market is propelled by a combination of powerful drivers, promising opportunities, and notable restraints. Key drivers include stringent global energy efficiency regulations and government incentives, such as subsidies and rebates, which encourage the adoption of energy-saving lighting technologies. Rising electricity costs and growing environmental awareness among consumers and corporations further stimulate demand for solutions that reduce energy consumption and greenhouse gas emissions. The declining cost of LED technology, coupled with continuous performance enhancements, makes these products increasingly accessible and attractive. Significant opportunities exist in the expansion of smart city initiatives and IoT integration, where intelligent lighting systems can play a pivotal role in urban infrastructure, offering capabilities like adaptive street lighting, traffic management, and public safety enhancements. The development of human-centric lighting presents another substantial opportunity, particularly in healthcare, education, and corporate environments, where lighting quality impacts well-being and efficiency. However, the market faces restraints including the high initial investment required for advanced lighting systems, which can be a barrier for cost-sensitive consumers and small businesses. Technical challenges related to compatibility with existing infrastructure and the need for specialized installation and maintenance also pose hurdles. Additionally, market saturation in developed regions and intense competition among manufacturers can pressure profit margins and slow growth rates in certain segments. Despite these challenges, the overall trajectory remains positive, driven by innovation and the global push towards sustainability.

Concentration Insights

The solid-state and energy-efficient lighting market exhibits a concentrated competitive landscape dominated by a mix of large multinational corporations and specialized technology firms. Major players such as Signify (formerly Philips Lighting), Acuity Brands, Osram Licht AG, and Cree Inc. hold significant market shares, leveraging their extensive product portfolios, strong brand recognition, and global distribution networks. These companies invest heavily in research and development to pioneer new technologies, improve product efficacy, and reduce costs, thereby maintaining their competitive edge. The market concentration is also influenced by strategic mergers, acquisitions, and partnerships aimed at expanding technological capabilities and geographic reach. For instance, collaborations between lighting manufacturers and semiconductor companies are common to enhance LED chip performance and integration. Regional concentration varies, with North America and Europe being mature markets characterized by high adoption rates and the presence of key industry leaders, while the Asia-Pacific region, particularly China, is a major manufacturing hub and a rapidly growing consumer market due to urbanization and government initiatives. The competitive intensity is high, with companies competing on factors such as product innovation, energy efficiency, price, and the ability to offer integrated smart lighting solutions. Despite the dominance of large players, there is room for niche specialists and startups focusing on innovative applications like horticultural lighting or advanced human-centric lighting systems, contributing to a diverse and evolving market ecosystem.

Type Insights

The solid-state and energy-efficient lighting market is segmented by type, with light-emitting diodes (LEDs) representing the predominant technology due to their superior efficiency, longevity, and versatility. LEDs are available in various forms, including chips, modules, and packaged products, catering to a wide range of applications from residential bulbs to commercial fixtures and automotive lighting. Organic light-emitting diodes (OLEDs) constitute another important segment, valued for their thin, flexible form factors and ability to produce diffuse, uniform light, making them ideal for specialized applications in displays, architectural lighting, and premium consumer products. Other energy-efficient lighting types include light-emitting capacitors (LECs), which are emerging as an alternative for certain niche uses, and advanced fluorescent lamps that have been optimized for higher efficiency, though their market share is declining in favor of solid-state options. Each lighting type offers distinct advantages; LEDs are renowned for their durability and energy savings, while OLEDs provide aesthetic benefits and design flexibility. The continuous innovation in semiconductor materials and manufacturing processes is driving improvements across all types, enhancing attributes such as color quality, dimming capabilities, and thermal performance. The choice of lighting type often depends on specific application requirements, cost considerations, and desired performance characteristics, with LEDs remaining the most widely adopted due to their overall cost-effectiveness and rapidly expanding application scope.

Application Insights

Solid-state and energy-efficient lighting technologies find applications across diverse sectors, each with unique demands and growth dynamics. In the residential sector, these lighting solutions are increasingly used for general illumination, task lighting, and ambient settings, driven by consumer desire for lower electricity bills, longer-lasting products, and enhanced lighting quality. The commercial and industrial segment represents a major application area, encompassing offices, retail spaces, warehouses, and manufacturing facilities, where energy-efficient lighting reduces operational costs and supports sustainability goals. Outdoor and architectural lighting applications include streetlights, parking lots, stadiums, and building facades, where the reliability, durability, and controllability of LEDs are highly valued for public safety and aesthetic purposes. The automotive industry is another significant adopter, utilizing LEDs and OLEDs for headlights, taillights, interior lighting, and displays, benefiting from their efficiency, compact size, and design flexibility. Emerging applications are also gaining traction, such as horticultural lighting, where tailored spectra promote plant growth in controlled environments, and healthcare lighting, which supports patient well-being and medical procedures. The integration of smart controls and IoT connectivity is expanding functionality across all applications, enabling features like remote monitoring, automated scheduling, and energy usage optimization. This broad applicability underscores the versatility of energy-efficient lighting and its critical role in modern infrastructure and daily life.

Regional Insights

The adoption and development of solid-state and energy-efficient lighting vary significantly across regions, influenced by economic conditions, regulatory frameworks, and infrastructure development. North America is a mature market characterized by high awareness of energy efficiency, supportive government policies, and early adoption of advanced technologies. The United States and Canada have well-established standards and incentives that drive replacement of traditional lighting with LED and other efficient solutions across residential, commercial, and municipal applications. Europe follows a similar pattern, with strong regulatory push from directives such as the Ecodesign and Energy Labeling regulations, leading to high penetration rates in countries like Germany, the UK, and France. The Asia-Pacific region is the largest and fastest-growing market, propelled by rapid urbanization, industrialization, and government initiatives in countries such as China, India, and Japan. China, in particular, is a global manufacturing hub for LED products and has extensive domestic adoption due to national energy efficiency programs. Latin America and the Middle East & Africa are emerging markets where growth is driven by increasing electricity demand, infrastructure projects, and gradual regulatory developments, though adoption rates are lower compared to developed regions. Each region presents distinct opportunities and challenges, with local preferences, economic conditions, and policy environments shaping market dynamics and growth trajectories.

Company Insights

The competitive landscape of the solid-state and energy-efficient lighting market features several key players that drive innovation and market growth. Signify, formerly known as Philips Lighting, is a global leader with a comprehensive portfolio of LED lighting products and smart lighting solutions for consumer, professional, and IoT applications. The company emphasizes connectivity and sustainability, offering systems like Philips Hue and Interact. Acuity Brands, based in the United States, is another major player known for its extensive range of architectural, commercial, and industrial lighting solutions, with a strong focus on integrated controls and energy management. Osram Licht AG, a German multinational, specializes in optoelectronics including LEDs, laser diodes, and lighting systems, serving automotive, industrial, and consumer markets with high-performance products. Cree Inc., an American company, is renowned for its innovation in LED chips and components, as well as lighting fixtures, contributing significantly to advances in efficiency and reliability. Other notable companies include General Electric Company, which has a historic presence in lighting and continues to offer advanced LED products, and Seoul Semiconductor, a South Korean firm known for its proprietary LED technologies. These companies invest substantially in research and development to enhance product performance, reduce costs, and explore new applications, while also engaging in strategic partnerships and acquisitions to strengthen their market positions and expand their global footprint.

Recent Developments

The solid-state and energy-efficient lighting market has witnessed several recent developments that highlight ongoing innovation and strategic shifts. There has been a marked increase in the adoption of human-centric lighting solutions, with companies introducing products designed to mimic natural daylight patterns to support circadian rhythms and improve occupant well-being in buildings. Smart lighting integration with IoT platforms has advanced significantly, enabling more sophisticated control systems, data analytics, and interoperability with other smart devices for holistic building management. Major players have launched new product lines with improved color rendering, higher efficacy, and enhanced connectivity features, catering to evolving consumer and industrial demands. Sustainability initiatives have gained momentum, with manufacturers focusing on reducing the environmental impact of their products through energy-efficient designs, recyclable materials, and circular economy practices. Strategic acquisitions and partnerships continue to shape the market, such as collaborations between lighting companies and technology firms to develop integrated solutions for smart cities and automotive applications. Regulatory developments in various regions have also influenced the market, with new standards pushing for even higher efficiency and lower environmental impact. Additionally, there is growing interest in UV-C LED technology for disinfection purposes, spurred by health concerns, representing an emerging application area with significant potential. These developments reflect a market that is dynamic, responsive to global trends, and continuously evolving to meet future challenges and opportunities.

Report Segmentation

This comprehensive market research report on the solid-state and other energy-efficient lighting market is meticulously segmented to provide detailed insights and facilitate informed decision-making. The report is divided by type, covering key technologies such as light-emitting diodes (LEDs), organic light-emitting diodes (OLEDs), and other energy-efficient lighting solutions including advanced fluorescents and light-emitting capacitors (LECs). Each type is analyzed in terms of technology characteristics, market share, and growth prospects. Application segmentation includes residential, commercial and industrial, outdoor and architectural, automotive, and other emerging applications like horticultural and healthcare lighting, examining demand patterns, adoption rates, and specific requirements for each sector. Geographical segmentation provides in-depth analysis of regional markets including North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa, highlighting regional trends, regulatory influences, and growth opportunities. The report also features competitive landscape segmentation, profiling major market players, their product offerings, strategic initiatives, and market positioning. Additional segmentation may include analysis by product form such as lamps, luminaires, and modules, as well as by installation type for new construction versus retrofit projects. This structured approach ensures that the report delivers granular insights tailored to the needs of industry stakeholders, investors, and decision-makers seeking to understand specific market dynamics and identify growth avenues.

FAQs

What is solid-state lighting? Solid-state lighting (SSL) refers to a type of lighting that uses semiconductor light-emitting diodes (LEDs), organic light-emitting diodes (OLEDs), or polymer light-emitting diodes (PLEDs) as sources of illumination rather than electrical filaments, plasma, or gas. Unlike traditional lighting technologies, SSL operates through the movement of electrons in a semiconductor material, which generates light efficiently with minimal heat production. This technology is renowned for its energy efficiency, long lifespan, durability, and environmental benefits, making it a superior alternative to incandescent and fluorescent lighting across various applications.

How does LED lighting save energy? LED lighting saves energy primarily through its high luminous efficacy, which means it produces more light per unit of electricity compared to traditional lighting technologies. LEDs convert a greater proportion of electrical energy into visible light rather than heat, resulting in significantly lower energy consumption for the same level of illumination. Additionally, LEDs have directional light emission, reducing losses associated with reflectors and diffusers used in conventional bulbs. Their long operational life further contributes to energy savings by reducing the frequency of replacements and associated manufacturing and disposal impacts.

What are the benefits of energy-efficient lighting? Energy-efficient lighting offers numerous benefits including substantial reduction in electricity consumption and costs, lower greenhouse gas emissions, and decreased reliance on fossil fuels. These lighting solutions typically have longer lifespans, reducing maintenance and replacement expenses. They also provide improved light quality, better color rendering, and enhanced controllability through dimming and smart systems. Furthermore, energy-efficient lighting supports compliance with environmental regulations and sustainability goals, while contributing to improved safety and productivity in various settings due to superior illumination and reduced heat output.

What is the difference between LED and OLED lighting? LED lighting uses inorganic semiconductor materials to produce light, offering high efficiency, brightness, and longevity, and is commonly used in a wide range of applications from bulbs to displays. OLED lighting utilizes organic compounds that emit light when an electric current is applied, providing thin, flexible, and uniform light sources with excellent color quality and wide viewing angles. While LEDs are more efficient and brighter, OLEDs excel in creating diffuse, glare-free illumination and are often used in specialized applications like architectural lighting and high-end displays where form factor and light quality are prioritized.

How is smart lighting integrated with energy-efficient technologies? Smart lighting integrates energy-efficient technologies like LEDs with advanced controls, sensors, and connectivity features to optimize lighting performance and energy use. This integration allows for automated adjustments based on occupancy, daylight availability, and time of day, minimizing unnecessary energy consumption. Smart systems enable remote monitoring and management via smartphones or centralized platforms, providing data analytics for further efficiency improvements. By combining efficient light sources with intelligent controls, smart lighting enhances user convenience, reduces operational costs, and maximizes energy savings, often contributing to broader smart building and IoT ecosystems.

What are the key trends in the energy-efficient lighting market? Key trends in the energy-efficient lighting market include the rapid adoption of LED technology driven by cost reductions and performance improvements, increasing integration of IoT and smart lighting systems for enhanced control and efficiency, and growing emphasis on human-centric lighting designed to support health and well-being. Sustainability initiatives and regulatory policies continue to shape the market, promoting the phase-out of inefficient lighting. Emerging applications such as UV-C LEDs for disinfection and horticultural lighting are gaining traction. Additionally, advancements in materials and manufacturing are leading to more efficient, durable, and versatile lighting solutions tailored to diverse consumer and industrial needs.

Citius Research has developed a research report titled “Solid-State and Other Energy-Efficient Lighting Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” delivering key insights regarding business intelligence and providing concrete business strategies to clients in the form of a detailed syndicated report. The report details out the factors such as business environment, industry trend, growth opportunities, competition, pricing, global and regional market analysis, and other market related factors.

Details included in the report for the years 2024 through 2030

• Solid-State and Other Energy-Efficient Lighting Market Potential
• Segment-wise breakup
• Compounded annual growth rate (CAGR) for the next 6 years
• Key customers and their preferences
• Market share of major players and their competitive strength
• Existing competition in the market
• Price trend analysis
• Key trend analysis
• Market entry strategies
• Market opportunity insights

The report focuses on the drivers, restraints, opportunities, and challenges in the market based on various factors geographically. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report. The Solid-State and Other Energy-Efficient Lighting Market report is segmented on the basis of various market segments and their analysis, both in terms of value and volume, for each region for the period under consideration.

Solid-State and Other Energy-Efficient Lighting Market Segmentation

Regions Covered

• North America
• Latin America
• Europe
• MENA
• Asia Pacific
• Sub-Saharan Africa and
• Australasia

Solid-State and Other Energy-Efficient Lighting Market Analysis

The report covers below mentioned analysis, but is not limited to:

• Overview of Solid-State and Other Energy-Efficient Lighting Market
• Research Methodology
• Executive Summary
• Market Dynamics of Solid-State and Other Energy-Efficient Lighting Market
  • Driving Factors
  • Restraints
  • Opportunities
• Global Market Status and Forecast by Segment A
• Global Market Status and Forecast by Segment B
• Global Market Status and Forecast by Segment C
• Global Market Status and Forecast by Regions
• Upstream and Downstream Market Analysis of Solid-State and Other Energy-Efficient Lighting Market
• Cost and Gross Margin Analysis of Solid-State and Other Energy-Efficient Lighting Market
• Solid-State and Other Energy-Efficient Lighting Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030
  • Competition Landscape
  • Market Share of Major Players
• Key Recommendations

The “Solid-State and Other Energy-Efficient Lighting Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” report helps the clients to take business decisions and to understand strategies of major players in the industry. The report delivers the market driven results supported by a mix of primary and secondary research. The report provides the results triangulated through authentic sources and upon conducting thorough primary interviews with the industry experts. The report includes the results on the areas where the client can focus and create point of parity and develop a competitive edge, based on real-time data results.

Solid-State and Other Energy-Efficient Lighting Market Key Stakeholders

Below are the key stakeholders for the Solid-State and Other Energy-Efficient Lighting Market:

• Manufacturers
• Distributors/Traders/Wholesalers
• Material/Component Manufacturers
• Industry Associations
• Downstream vendors

Solid-State and Other Energy-Efficient Lighting Market Report Scope

COVID-19 Impact Analysis

Like most other markets, the outbreak of COVID-19 had an unfavorable impact on the Solid-State and Other Energy-Efficient Lighting Market worldwide. This report discusses in detail the disruptions experienced by the market, the impact on flow of raw materials, manufacturing operations, production trends, consumer demand and the projected future of this market post pandemic.

The report has helped our clients:

• To describe and forecast the Solid-State and Other Energy-Efficient Lighting Market size, on the basis of various segmentations and geography, in terms of value and volume
• To measure the changing needs of customers/industries
• To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the market
• To gain competitive intelligence and uncover new opportunities
• To analyse opportunities in the market for stakeholders by identifying high-growth segments in Solid-State and Other Energy-Efficient Lighting Market
• To strategically profile key players and provide details of the current competitive landscape
• To analyse strategic approaches adopted by players in the market, such as product launches and developments, acquisitions, collaborations, contracts, expansions, and partnerships

Report Customization

Citius Research provides free customization of reports as per your need. This report can be personalized to meet your requirements. Get in touch with our sales team, who will guarantee you to get a report that suits your necessities.

Frequently Asked Questions