LED Panels/Troffers Market by Type (Human Centric Lighting (HCL), Traditional LED Panels) by End-user (Residential, Commercial, Industrial) by Price Range (Low (Below USD 25)Medium (Between USD 25 to USD 100), Above USD 100): Growth, Future Prospects, and Competitive Analysis, 2015 - 2027

LED Panels/Troffers are a kind of lighting fixtures used as an energy-efficient and aesthetic replacement for traditional fluorescent ceiling lights. LED Panels/Troffers are the most commonly used ceiling lights for indoor settings, including residential, industrial, and commercial buildings. LED Panels/Troffers are designed in such a way that they can align with the interior of a building and can easily immerse in the ceiling. Additionally, LED Panels/Troffers provide enhanced illumination in applied areas. LED Panels/Troffers are made up of various layers, including aluminum frames, polymers liners, etc. All LED Panels/Troffers make use of advanced LED technology.

LED Panels/Troffers also include an LED chip inside, a diffuser, and a reflector on the back of LED lights. LED Panels/Troffers are considered highly energy efficient against other ceiling lighting options such as CFL’s. LED Panels/Troffers consume just half the energy that a CFL requires to produce similar quality of light. The Global LED Panels/Troffers market is growing at an attractive CAGR of over 12.5%. The revenue generated by the global LED Panels/Troffers industry in 2020 was around USD 17.2 billion and is expected to cross the valuation of USD 43 billion in 2027. While cumulative revenue growth of the global LED, Panels/Troffers industry is expected to be slightly over USD 225 billion from 2021 to 2027.

Global LED Panels/Troffers Market

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Interesting Facts of LED Panels/Troffers

  • LED Panels/Troffers consumption in the Asia Pacific is highest among all regions, with over 35% share in 2020
  • LED Panels/Troffers are highly energy efficient as compared to their traditional counterpart, i.e., CFL
  • Favorable Government Policies to Drive the Demand for LED Panels/Troffers around the world
  • High cost is one of the major issues in the adoption of LED Panels/Troffers, especially in emerging economies
  • LED Panels/Troffers priced below USD 25 occupy a large share of almost 75% in terms of volume, while revenue share is just around 55% for this segment
  • Human-centric lighting is one of the most rapidly growing segments of the global LED Panels/Troffers industry worldwide

The outbreak of COVID 19 and High Costs are Expected to be Major Hurdles for the Growth of the LED Panels/Troffers industry.

The outbreak of COVID 19 had a very severe impact on the Growth of the global LED Panels/Troffers market. The industry experienced a whopping decline of over 12% in 2020. The global LED Panels/Troffers has experienced a decline in its market size ever since its commercialization. However, with the revival of construction activities, the demand for LED Panels/Troffers is likely to restore within a few months. Secondly, Growth is also expected to be hampered due to rising costs and declining end-user spending power due to the economic consequences of COVID 19.  

Favorable Government Policies to Boost the Installation of LED Lights

Governments across the world are facing increasingly challenging situations regarding climate change and growing energy consumption. As a result, it's increasingly becoming difficult to meet the growing energy demand. In such a situation, LED lights have come to rescue governments of various countries as LED’s are highly energy efficient and require less than half of the power to produce a light of similar quality that a CFL can have. Moreover, LED Panels/Troffers are durable, safe, and require less maintenance than their traditional counterparts. As a result, governments worldwide are coming up with policies and regulations favorable for developing the LED lighting industry. Additionally, many governments have subsidized the use of LED lights. This, in turn, drives the demand for LED Panels/Troffers worldwide.     

Increasing concerns regarding world climate change, most governments across the globe are taking the initiative in encouraging the citizens to use energy-efficient LED lamps in order to lower energy consumption and decrease environmental footprints. Moreover, many governments are offering attractive subsidies on LED lights in order to push people towards the use of led lamps. Apart from initiatives taken by the government, the end-users are also inclined towards using LED Panels/Troffers owing to their durability, lower energy consumption, and low replacement cost.

Increasing Number of Companies Offering Work from Home in the Wake of COVID 19    

In the wake of the COVID 19 pandemic, many companies have offered work-from-home facilities to their employees worldwide. This, in turn, also resulted in the growing demand for LED Panels/Troffers from household consumers. As a result, the rise in demand for LED Panels/Troffers from household consumers is likely to grow in 2021 and 2022. 

Human Centric Lighting to Gain Traction in the Years to Come

Human-centric lighting is a new stream of LED Panels/Troffers industry that is growing at a rapid pace. Human-centric lighting offers a natural daylight experience and thus stimulates our bodily functions. It is considered to provide improved human performance, better health, and well-being. Human-centric lighting facilitates visual balance and the human body's physical and emotional requirements. The human-centric lighting segment is growing rapidly and is expected to exhibit a CAGR of over 18% during the forecast period.  

Asia Pacific to Dominate the Production as well as Demand for LED Panels

The presence of large number f manufacturers, as well as a consumption base backed by the huge population in the region, is mainly driving the Growth of this industry in the area. Asia Pacific is also one of the leading exporters of LED Panels owing to the solid huge production capacity installed across China, South Korea, Taiwan, and Other Southeast Asian countries. Key players operating in the global LED Panels market include but are not limited to Signify, Nichia, Osram, Seoul Semiconductor, Everlight Electronics, Koninklijke Philip, Cree Incorporation, Acuity Brand Lighting, General Electric, LG Innotek, Eaton Corporation, Toyoda Gosei Co, Ltd, Zumtobel Group, Ledtronics, Herbert Waldmann Gmbh, and Lumiron. The market for LED Panels is highly fragmented, with a large number of manufacturers. However, almost 40% share is occupied by just six companies.  

Frequently asked questions about global LED Panels/Troffers industry

Construction of residential and commercial building was westly hit by COVID 19 which in turn resulted into decline of over 12% in market size of LED panels industry

Taiwan, China, and South Korea dominated the production of LED Panels. Asia Pacific is largest producer, consumer as well as exporter of LED Panels in the world

Low-cost alternative of CFL is likely to arrest the growth of LED Panels industry to some extent

Signify, Nichia, Osram, Seoul Semiconductor, Everlight Electronics, Koninklijke Philip, Cree Incorporation, Acuity Brand Lighting, General Electric, LG Innotek, Eaton Corporation, Toyoda Gosei Co, Ltd, Zumtobel Group, Ledtronics, Herbert Waldmann Gmbh and Lumiron

Human centric lights are most rapidly growing segment in global LED panels industry. Moreover, by price range, below USD 25 segment held the largest share in terms of both volume as well as revenue

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Executive Summary - Brief Global Market Size - Current & Forecast
Regional Market Size - North America
Country Market Size - US
Company Profile – 1
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Published Date:  Sep 2021
Category:  Semiconductor & Electronics
Report ID:   60430
Report Format:   PDF
Pages:   120
Rating:    4.1 (60)
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