Report Details

Market Overview:

Market Introduction:

The Global Light Engine Market reached a value of USD 27.3 billion in 2022 and is projected to reach USD 82.16 billion by 2032, growing at an annual rate of 13.1% during this period.

A light engine is a complete lighting system that includes all the necessary components for generating light. In the context of LED and Solid-State Lighting, a typical light engine consists of an LED or solid-state module along with essential components like a driver, a heat sink, optics, and control electronics to ensure optimal performance. These components work together to deliver efficient and controlled illumination. Key elements encompass optics, electronics, systems for managing heat, and control mechanisms. These Light Engines offer several advantages, including high energy efficiency, a longer lifespan, and the ability to tailor lighting settings according to specific needs. The light engine market is poised for continued growth in the upcoming years. This growth is driven by factors such as a growing demand for energy-efficient lighting solutions, government regulations that promote the use of LED lighting, and the increasing adoption of smart lighting systems. Furthermore, ongoing technological advancements and decreasing prices of LED components are contributing to the market's expansion.

Key Takeaways:

Long Lifespan and Energy-Efficient Lighting:

LED light engines are constructed using solid-state technology, making them exceptionally durable and resistant to shocks, vibrations, and external impacts. Unlike traditional lighting options like incandescent or fluorescent bulbs, LED light engines lack delicate components such as filaments or glass tubes that are prone to breaking. This durability ensures that LED light engines can withstand various environmental conditions, resulting in a long operational life. LED bulbs can last up to 23 times longer than incandescent bulbs. This prolonged lifespan reduces the need for frequent bulb replacements, leading to lower maintenance costs and minimal disruptions to lighting systems. These lights also enable users to create customized lighting scenarios to enhance the ambiance and mood of a space. This includes adjusting brightness, color temperature, and even the color itself.

Sustainable and Cost-Effective System:

Light engines significantly consume less electricity compared to traditional incandescent or fluorescent bulbs, resulting in substantial energy savings. For instance, LED bulbs are renowned for their high efficiency and have the potential to reduce electricity consumption by up to 80% compared to incandescent bulbs. This translates into lower electricity bills for households, businesses, and industries. Reduced energy consumption also leads to lower greenhouse gas emissions, contributing to efforts to mitigate climate change. Moreover, the cost of LED technology has significantly decreased over the past 8-10 years. Ongoing research and development (R&D) endeavors in the LED industry have led to enhancements in LED technology. These R&D efforts have improved LED manufacturing processes and materials, making them more efficient and cost-effective.

Supply Chain Challenges:

Basic components required for light engines, particularly LED-based systems, include semiconductors, phosphors, substrates, and packaging materials. The sourcing of these various components, raw materials, and manufacturing methods relies heavily on a complex global supply chain. Natural disasters, trade disputes, and other disruptions in the supply chain can lead to shortages, increased costs, and production delays. These disruptions hinder market growth by limiting the availability of light engines.

Growing Demand Across Various Sectors:

LED light engines are exceptionally energy-efficient compared to traditional lighting technologies, consuming less power while delivering bright and focused illumination. This energy efficiency helps reduce the overall power consumption of automotive lighting systems. The increasing 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 offer precise control over light parameters such as wavelength, intensity, and duration. This capability enables the development of targeted therapies, including photodynamic therapy and optogenetics, where light selectively activates specific cells or tissues. Additionally, it provides bright, focused, and adjustable lighting that enhances visibility for medical professionals during procedures, examinations, and treatments.

Report Coverage:

Product Type Outlook:

Regarding product types, the global light engine market is divided into two main categories: lamps and luminaires. The lamp category is further broken down into LED A-shape lamps, reflectors, decorative lighting, and specialty lamps. Similarly, the luminaire category is split into ceiling fans, chandeliers, and high-bay light fixtures. Light-emitting diode (LED) lamps find application in various sectors, including automotive, healthcare, furniture, and consumer electronics, thanks to their dynamic functionality.

Installation Type Outlook:

In terms of installation type, the global light engine market can be categorized into two groups: new installations and retrofit installations. Unlike retrofit installations, new installations involve replacing traditional lighting systems with energy-efficient alternatives, such as LED bulbs that consume significantly less electricity compared to traditional systems.

Power Capacity Outlook:

When considering power capacity, the global light engine market is segmented into four groups: up to 5W, 5 - 10W, 10 - 15W, and above 15W. The power capacity of light engines depends on various factors, including the type of LED technology used, thermal management capabilities, and the design and construction of the light engine. Light engines with a power capacity of above 15W are designed for applications requiring intense illumination and coverage over large areas. They are often utilized in high-intensity applications like outdoor area lighting and industrial lighting.

End Use Outlook:

In terms of end-use, the global Light Engine market is divided into indoor lighting and outdoor lighting. The indoor lighting segment further consists of three sub-segments, specifically residential, industrial, and commercial. The outdoor lighting segment is also subdivided into three sub-segments, including highways, architectural lighting, and other outdoor commercial spaces. In the indoor lighting segment, light engines offer numerous advantages across various applications. They facilitate the shift from traditional lighting technologies to advanced and sustainable LED-based lighting systems, enabling improved lighting experiences in diverse indoor environments.

Regional Outlook:

Asia Pacific is expected to experience the most significant growth in the light engine market, with an estimated gain of 32% during the forecast period. This growth is attributed to the rapid population increase and the increasing adoption of light engine lighting solutions, which are poised to boost the region's market in the years ahead.

In 2032, Europe is projected to secure the second-largest share of the market's revenue. This growth can be attributed to the thriving IT industry and the construction sector, which is benefiting from rising investments and new infrastructure development initiatives. The construction industry plays a pivotal role in the European Union's economy. Furthermore, architectural consultancy is expected to thrive throughout the projection period due to the resumption of construction on multiple data center facilities, which had been temporarily halted due to the COVID-19 pandemic. Additionally, Germany is anticipated to experience the highest Compound Annual Growth Rate (CAGR) during the estimated timeframe, owing to its significant production capacity for smart home devices.

Competitive Landscape:

Manufacturers operating in the global Light Engine market include 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, and MLS CO, LTD.

These market players are actively pursuing various strategies to capitalize on untapped opportunities in the global Light Engine market.

Some Leading Market Companies Listed in the Report:

• Wipro Enterprises
• ACUITY BRANDS, INC.
• Fulham Inc.
• Fusion Optix
• Bajaj Electricals Ltd
• Hubbell Incorporated
• Maxlite, Inc.
• Havells India Ltd.
• Suzhou Opple Lighting Co., Ltd.
• Crystal IS, Inc.
• Other key players

Light Engine Industry Recent Developments:

• In June 2021, Acuity Brands, Inc. entered into an agreement to acquire the North American operations of Ams Osram's digital systems business. This acquisition encompasses the manufacturing of LED drivers, LED light engines, and components for internet connectivity.
• In June 2022, DEDO Lights, a manufacturer specializing in LED lighting and solutions, in collaboration with its partner firm Prolycht, unveiled the innovative RGBLAC LED lighting system. This LED system is capable of producing a spotlight beam with a remarkable 6:1 variation in light intensity.

The Global Light Engine market has been segmented based on Product type, Installation, Power Capacity, End Use, and Region.

Light Engine Segment By Product Type

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

Light Engine Segment By Installation Type

• New Installation
• Retrofit Installation

Light Engine Segment By Power Capacity

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

Light Engine Segment By End Use

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

Light Engine Segment by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Russia
  • Nordic Countries
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Southeast Asia
  • India
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Mexico
  • Brazil
  • Rest of Latin America
• Middle East & Africa
  • Turkey
  • Saudi Arabia
  • UAE
  • Rest of MEA

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