Light Engine Market

Market Outlook:

The Global Light Engine Market was valued at USD 22,577.2 Million in 2022 and is expected to reach USD 74,118.5 Million in 2031, expanding at a CAGR of 14.1% during the forecast period.

A light engine is an integrated lighting system which comprises components required to generate light. A light engine in the realm of LED and Solid-State Lighting usually comprises an LED or solid-state module accompanied by relevant components such as driver, heat sink, optics, and control electronics for optimal functionality. These components work in conjunction to provide efficient and controlled illumination. Key elements include optics, electronics, heat management systems, and control mechanisms.

These Light Engines offer advantages such as high energy efficiency, extended lifespan, and the ability to customize lighting parameters. The light engine market is expected to continue its growth trajectory in the coming years. Factors such as increasing demand for energy-efficient lighting solutions, government regulations promoting the use of LED lighting, and the rising adoption of smart lighting systems are driving the market's expansion. Moreover, advancements in technology and decreasing prices of LED components are further fueling market growth.

Macro-economic Factors

Infrastructure Development

Investments in infrastructure development, including highways, commercial buildings, and public facilities, spur the demand for light engines. Large-scale projects, such as airports, stadiums, bridges, and railway systems, often require illuminations or lighting solutions with customizations according the special application requirements. The efficient lighting system in the stadiums is the source of large revenue for the commercial entertainment providers, both online and offline. Airports need lighting systems, which have controlled illumination for airplane landing.

Environmental Regulations and Sustainability Initiatives

The United Nations Framework Convention on Climate Change (UNFCCC) has been encouraging energy-efficient lighting options, as part of its sustainable development objectives. In order to provide consumers, the ability to choose the amount of light is needed, the standard advocates the use of distinct controllers for various lighting locations or purposes. The usage of efficient Artificial Intelligence-based energy solutions helps in reducing the energy consumed. Moreover, new developments in LED technology are possible, due to the expanding use, smart sensor technology, and improvements in materials & manufacturing techniques.

Market Dynamics

Market Driver

Long Lifespan and Energy Efficient Lighting
LED light engines are built with solid-state technology, which make them highly durable and resistant to shock, vibrations, and external impacts. LED light engines do not have fragile components such as filaments or glass tubes that easily break, unlike traditional lighting options such as incandescent or fluorescent bulbs. This durability ensures that LED light engines withstand various environmental conditions and have a long operational life.

LED bulbs last up to 25 times longer than incandescent bulbs. This extended lifespan reduces the frequency of bulb replacements, which result in low maintenance costs and less disruption to lighting systems. These lighting allows users to create customized lighting scenes to enhance the ambiance and mood of a space. This includes adjusting brightness, colour temperature, and even the colour itself.

Sustainable and Cost-Effective System
Light Engine significantly consume less electricity compared to traditional incandescent or fluorescent bulbs. This provides substantial energy savings. For example, LED bulbs are known for their high efficiency and have the potential to reduce electricity consumption by up to 80% compared to incandescent bulbs. This translates into low electricity bills for households, businesses, and industries. The reduced energy consumption leads to low greenhouse gas emissions and contributes to mitigating climate change.

Similarly, Light-emitting diode (LED) technology has seen a significant decline in costs over the 7-10 years. Continuous research and development (R&D) efforts in the LED industry have led to improvements in LED technology. These efforts on R&D led to the advancement in LED manufacturing processes and materials. LED manufacturers have refined their manufacturing process, making them efficient and cost-effective.

Market Restraint

Trouble in Supply Chain
Semiconductors, phosphors, substrates, and packaging materials are some of the basic components needed for light engines, particularly LED-based systems. The sourcing of various components, raw materials, and manufacturing methods primarily depends on a complicated global supply chain. Natural disasters, trade conflicts, and other supply chain disruptions resulting in shortages, higher costs, and production delays. These disruptions restrain the market growth by limiting the availability of light engines.

Market Opportunity

Increasing Demand from Various Sector
LED light engines are highly energy-efficient compared to traditional lighting technologies. They consume less power while delivering bright and focused illumination. This energy efficiency helps reduce the overall power consumption of automotive lighting systems. The adoption of autonomous vehicles and the growing emphasis on safety and aesthetics in automotive design create a favorable market for innovative light engine solutions.

LED-based systems, provide precise control over light parameters such as wavelength, intensity, and duration. This enables the development of targeted therapies, such as photodynamic therapy and optogenetics, where light is used to selectively activate specific cells or tissues. It provides bright, focused, and adjustable lighting that enhances visibility for medical professionals during procedures, examinations, and treatments.

Scope of the Report  

The report on the global Light Engine Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Attributes	Details
Report Title	Light Engine Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
Base Year	2022
Historic Data	2016–2021
Forecast Period	2023–2031
Segmentation	by Product Type (Lamp, Luminaire), by Installation Type (New Installation, Retrofit Installation), by Power Capacity (Up-to 5 W, 5 - 10 W, 10 - 15 W, Above 15 W), by End Use (Indoor Lighting, Outdoor Lighting), by Sales Channel (Retail, Wholesaler, and Distributor)
Regional Scope	Regions (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa)
Report Coverage	Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered	ACUITY BRANDS, INC., Bajaj Electricals Ltd, Fulham Inc., Fusion Optix, Havells India Ltd., Hubbell Incorporated, Leedarson IoT Technology Inc., Cree Lighting Europe S.p.A., Maxlite, Inc., Wipro Enterprises, Suzhou Opple Lighting Co., Ltd., Crystal IS, Inc., OSRAM Licht Group, Signify Holding, Zumtobel Group, MLS CO, LTD

 

By Product Type

Based on product type, the global light engine market is segmented into lamp and luminaire. The land segment is further divide into LED A-shape Lamps, Reflectors, Decorative Lighting, and Speciality land. Similarly, Luminaire segment is bifurcate into Ceiling Fans, Chandeliers, and High-bay Lightings. Light-emitting diode (LED) lamps use in various sector such as Automotive, Healthcare, Furniture and Consumer Electronics due to its dynamic functionality.

By Installation Type

Based on installation type, the global light engine market is segmented into new installation and retrofit installation. Unlike Retrofit Installation, New Installation replacing the traditional lighting system due to the energy-efficient lighting options, such as light-emitting diode (LED) bulbs, consume significantly less electricity compared to traditional system. `

By Power Capacity

Based on power capacity, the global light engine market is segmented into up-to 5W, 5 - 10W, 10 - 15W, and above 15W. The power capacity of light engines depends on various factors, including the LED technology used, thermal management capabilities, and the design and construction of the light engine. Above 15 W is designed for applications that require intense illumination and large coverage areas. They are often used in high-intensity applications, such as outdoor area lighting and industrial lighting.

By End Use

On the basis of End Use the global Light Engine market bifurcate indoor lighting and outdoor lighting. Furthermore, the indoor light segment is divided into three sub-segments, explicitly residential, industrial, and commercial. The outdoor lighting segment is further divided into three sub-segments, which are highways, architectural lighting, and other outdoor commercial spaces.

In the indoor lighting segment, light engines offer several advantages in various applications. It contributes to the transition from traditional lighting technologies to advanced and sustainable LED-based lighting systems, enabling enhanced lighting experiences in various indoor environments.

By Sales Channel

In terms of Sales Channel, the Global Light Engine Market is segmented into Based on sales channel, the global light engine market is segmented into retail, wholesaler, and distributor. The retail segment is further bifurcate into online and offline. Retail sales in the light engine market involve physical retail stores as well as online retail platforms such as third-party e-commerce websites and companies websites.

Based on regions, the market is fragmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific accounted for a significant share of the market in 2022, due to the growth attributed to rapid industrialization and urbanization, especially in countries such as China, India, and Southeast Asia. Furthermore, The Availability of low-cost labor and raw materials, makes the region an attractive location for manufacturers and is driving the market growth.

Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Light Engine Market
• Historical, Current, and Projected Market Size in Terms of Value
• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
• Industry Drivers, Restraints, and Opportunities Covered in the Study
• Recent Industry Trends and Developments
• Competitive Landscape & Strategies of Key Players
• Neutral Perspective on Global Light Engine Market Performance

Segments

By Product Type

• Lamp
  • A-shape
  • Reflectors
  • Decorative
  • Specialty
• Luminaire
  • Ceiling Fan
  • Chandeliers
  • Highway Lightings
  • Recessed Luminaries
  • Others

By Installation Type

• New Installation
• Retrofit Installation

By Power Capacity

• Up-to 5 W
• 5 - 10 W
• 10 - 15 W
• Above 15 W

By End Use

• Indoor Lighting
  •  Residential
  •  Commercial
  •  Industrial
• Outdoor Lighting
  •  Highways
  •  Architectural Lighting
  •  Other Outdoor Commercial Spaces

By Sales Channel

• Retail
  •  Online
    • Third Party E-Commerce Platforms
    •  Company Websites
  •  Offline
    •   Specialty Stores
    •   Supermarkets/Hypermarkets
• Wholesaler
• Distributor

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Key Market Players Profiled in the Report

• ACUITY BRANDS, INC.
• Bajaj Electricals Ltd
• Fulham Inc.
• Fusion Optix
• Havells India Ltd.
• Hubbell Incorporated
• Leedarson IoT Technology Inc.
• Cree Lighting Europe S.p.A.
• Maxlite, Inc.
• Wipro Enterprises
• Suzhou Opple Lighting Co., Ltd.
• Crystal IS, Inc.
• OSRAM Licht Group
• Signify Holding
• Zumtobel Group
• MLS CO,LTD

Competitive Landscape

• Manufacturers operating in the global Light Engine market are ACUITY BRANDS, INC., Bajaj Electricals Ltd, Fulham Inc., Fusion Optix, Havells India Ltd., Hubbell Incorporated, Leedarson IoT Technology Inc., Cree Lighting Europe S.p.A., Maxlite, Inc., Wipro Enterprises, Suzhou Opple Lighting Co., Ltd., Crystal IS, Inc., OSRAM Licht Group, Signify Holding, Zumtobel Group, MLS CO, LTD.

• Market players are pursuing strategies such as acquisitions, product launches, collaborations, and geographic expansion to leverage untapped opportunities in the global Light Engine market.