The LED Retrofit Surge: A Fast-Growing and Lucrative Industry
Posted on 14-September-2022
LEDs, solid-state lighting (SSL), and other lighting technologies are changing the way people in developed countries look at the lighting market. The retrofit market has seen considerable growth internationally, primarily due to technological advancements and improved applications by manufacturers. These advancements have made the technology more efficient, affordable, and cost-effective than other conventional lighting sources that were being used before its introduction.
LEDs are now a mainstay in outdoor lighting both for homes and commercial buildings. While LEDs continue to be used for general illumination of spaces, lighting designers have also started using this technology for functional purposes. Improved features such as dimming, and color mixing capabilities are helping LED retrofit to gain traction among end users. Efficiency gains of above 50%, lack of harmful ultraviolet rays (UV rays), lower maintenance costs, and longer lifetimes have led to LED technology becoming a viable replacement for other conventional lighting sources.
“The LED retrofit market is expected to grow at a significant CAGR of 7% during the period 2022-2027. “
The rising demand for energy-efficient lighting solutions across various end-use industries such as commercial, residential, industrial, and transportation has led to an increased focus on the LED retrofit market. The rising adoption of solar energy systems by households across the globe coupled with increasing demand for energy-efficient lighting solutions has supported this growth over the years. This has resulted in an opportunity for new players in this market, which are planning to enter previously held regional and national markets.
The increasing demand for energy-efficient lighting solutions is primarily driven by the increase in electricity prices and rising awareness about climate change. However, the increase in prices of raw materials such as rare earth elements has also contributed to the growth of the LED retrofit market.
The LED retrofit market has experienced growth over the past years. This report is a detailed analysis of key trends and drivers impacting the LED retrofit market. Also, this report evaluates factors that will help in predicting the future value potential of each region.
LED Retrofit Market by Regions
North America - U.S., Canada, and Mexico accounted for the largest share of the global LED retrofit market in 2018. North America is expected to continue dominating the LED retrofit market throughout the forecast period. This region has been witnessing rapid growth in its manufacturing sector over the past few decades, which is expected to benefit from increased demand for eco-friendly products such as LEDs and CFLs in future years.
Europe - Germany, France, and the UK are estimated to be among the top contributors to this region’s market size during 2016-2027 along with other countries such as Italy and Spain that have significant industrial sectors associated with the lighting industry. The European market is also expected to witness significant growth.
The growing presence of low-cost Chinese manufacturers in this segment has also helped increase competition among players in this market. In addition, stringent regulations regarding cooling fans used in LED products have also limited their usage in many applications where their installation is not required. These factors have led to the decline in overall demand for LED products which is expected to impact the growth rate of this segment over the forecast period.
In the coming decade, the led retrofit market will see a progressive change in terms of structure and rules; there will be clear guidelines that define the product. Moreover, the need for low-budget solutions, such as low-current LEDs and efficient driver systems will drive the market positively over the forecast period.
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