LED Panels/Troffers Market by Type (Human Centric Lighting (HCL), Traditional LED Panels) by End-user (Reside ntial, 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 Market Insights

LED Panels/Troffers are a kind of lighting fixtures that are used as an energy efficient and aesthetic replacement for traditional fluorescent ceiling lights. LED Panels/Troffers are 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 interior of a building and can easily immersed in ceiling. Additionally, LED Panels/Troffers provides enhanced illumination in applied areas. LED Panels/Troffers are made up of various layers including aluminium frame, 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 to be highly energy efficient as against other ceiling lighting options such as CFL’s. LED Panels/Troffers consume just half the energy that a CFL require to produce similar quality of light. 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 expected to cross valuation of USD 43 billion in 2027. While, cumulative revenue growth of global LED Panels/Troffers industry is expected to be slightly over USD 225 billion during 2021 to 2027.

Global LED Panels/Troffers Market

Interesting Facts of LED Panels/Troffers

  • LED Panels/Troffers consumption Asia Pacific is highest among all regions with over 35% share in 2020
  • LED Panels/Troffers are highly energy efficient as compare to its traditional counterpart i.e. CFL
  • Favourable Government Policies to Drive the Demand for LED Panels/Troffers around the world
  • High cost is one of the major issues in adoption of LED Panels/Troffers especially in emerging economies
  • LED Panels/Troffers priced below USD 25 occupy 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 segment of global LED Panels/Troffers industry worldwide

Outbreak of COVID 19 and High Cost are Expected to be Major Hurdles for Growth of LED Panels/Troffers industry

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

Favourable Government Policies to Boost the Installation of LED Lights

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

Increasing concerns regarding world climate change, most of governments across the globe are taking initiative in encouraging the citizens to use energy efficient LED lamps in order to lower the energy consumption and decrease environmental footprints. Many governments are offering attractive subsidies on LED lamps in order to push people towards use of led lamps. Apart from initiatives taken by government, the end-users are also inclined towards use of LED Panels/Troffers owing to its 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 COVID 19 pandemic, large number of companies have offered work from home facility to their employee across the world. This in turn also resulted into growing demand for LED Panels/Troffers from household consumers. 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 which is growing at a rapid pace. Human centric lighting offers a natural day light experience and thus stimulate our bodily functions. It is considered to offer improved human performance, better health and well being of human kind. Human centric lighting facilitates visual balance as well as biological and emotional requirements of human body. Human centric lighting segment if growing at a rapid pace and expected to exhibit CAGR of over 18% during the forecast period.   

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

Presence of large number f manufacturers as well as consumption base backed by the huge population in the region is mainly driving the growth of this industry in the region. Asia Pacific is also one of the leading exporters of LED Panels owing strong 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 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. Market for LED Panels is highly fragmented with the presence of large number of manufacturers. However, almost 40% share is occupied by the just six companies.    

Frequently asked questions about global 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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Published Date:  Sep 2021
Category:  Semiconductor & Electronics
Report ID:   60430
Report Format:   PDF
Pages:   120
Rating:    4.1 (60)
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