Light-emitting diode (LED) market is expected to grow at a CAGR of more than 18 percent from 2017-2021, according to Technavio.
The adoption of LED lighting is growing due to the demand for energy-efficient lighting solutions across sectors, such as the retail, hospitality, architecture, commercial, and residential.
The high luminous efficacy, greater life span, reduced energy use, and decreasing average selling price (ASP) of LED lighting products compel consumers to switch to LED technology.
The report said policy environment and governmental support, demand for energy-efficient lighting solutions, increasing outreach of energy-efficiency certification programs, upcoming international events and infrastructure projects are contributing to the growth of the global LED market.
In 2016, lighting applications were estimated to account for more than 20 percent of global energy consumption.
“Governments of established economies like the US and the UK and emerging economies like China and India, are engaging in the promotion of LED lighting products by providing tax incentives and subsidies on these products,” said Chetan Mohan, a lead analyst at Technavio for lighting research.
The FIFA World Cup 2018 in Russia is expected to contribute significantly to the global LED market.
The report said increased construction of sports infrastructures like stadiums and athletes’ village; public infrastructure like roads; and commercial buildings like hotels, tourist facilities, and shopping complexes will drive the demand for LED lighting in Russia.
In addition, Governments of various countries such as China and India are making significant investments in the development of infrastructure projects and smart cities to complement the economic growth and to cater to the requirements of the growing urban population.