The global work light market size to cross USD 44 billion by 2020, growing at a CAGR of 6% during the forecast period. The global work light market growth is driven by ongoing demand for the replacement of conventional lighting systems in developed economies, along with the need to develop globally-built modern infrastructure. The market is witnessing a transition from old lighting technology to energy-efficient and integrated lighting infrastructure. Government agencies across the globe constantly strive to phase out the use of incandescent lights and halogen lamps, which are expected to drive the demand for energy-efficient and high-performance lighting systems. The availability of tax discounts and subsidies by regulatory bodies to promote the use of efficient lighting technology is another driver for the growth.
The global work light market has been vastly hit by the COVID-19 pandemic. It is widely affected as associated sectors such as infrastructure development, stage events, hospitality has been severely influenced due to the outbreak of the virus. As a short-term impact, China-dependent countries have started witnessing the rise in LED prices. In a major commercial region such as India, the price of LED bulbs and lights has witnessed a rise of 11% from March 2020 as manufacturers face a supply shortage of electronic components due to the coronavirus outbreak in China.
- The floodlight segment is expected to grow at a CAGR of over 8% during the period 2019–2025 on account of substantial development in infrastructure, including stadiums and sport creational centers.
- The LED technology segment is projected to observe a revenue of $31 billion by 2025. The growth can be attributed to the replacement of conventional lighting systems by LED lighting solutions.
- The offices' segment is likely to achieve a revenue of $10.5 billion by 2025, growing at the highest CAGR of over 9%. The office lighting segment constitutes one-third of global electricity consumption and compensates for about one-fourth of global greenhouse gas (GHG) emissions.
- The work light market share in India is expected to reach over $2.6 billion by 2025. The LED work light market size in India is expected to grow due to the increasing adoption of LED lighting in commercial and residential sectors, government projects, and upcoming smart building projects.
GLOBAL WORK LIGHT MARKET SEGMENTATION
This research report includes a detailed segmentation by
INSIGHTS BY PRODUCT
The flashlight segment has been witnessing significant innovations. The market demand for flashlights across the globe has witnessed impressive growth in the last five years. However, the demand is likely to decline moderately due to the outbreak of the COVID-19 pandemic in 2020, which has immensely affected the supply chain of the market. As the utility of flashlights is significant in hunting such as locating hunting posts, reading maps in dark, tracking animal paths, and handling weapons safely, the growth in hunting activities is likely to push the demand for portable lights.
Spotlights provide strong benefits in the commercial sector such as outdoor light intensity, fishing, high-speed night ride, and unique outdoor activities because the core is bright with a focus on the long-range effect, which is ideal for long-distance lighting. The presence of these advantages acts as one of the key drivers for demand across the globe. Therefore, the increase in end-user applications is expected to augur well for industry standards. The market is gradually shifting to LED-based spotlights from conventional spotlights, which is likely to drive growth during the forecast period.
INSIGHTS BY TECHNOLOGY
The conventional lights market continues to grow as these lights are economical and cost-effective. The segment is witnessing the demand as LED lights are associated with high costs. However, the cost analysis suggests the incremental cost of LED will continue to decline during the forecast period. Factors such as energy and construction laws, service rebates, and consumer demand for goods that can offer low energy and maintenance costs often drive the segment. However, the rare earth crisis has forced producers to move some of their emphasis from value-added to cost-effective solutions.
The work light market has witnessed significant changes in terms of technology. The introduction of light-emitting diode (LED) in 2008 gradually disrupted the market globally. The growing penetration of LEDs can be considered due to the growing advantages, including high brightness and energy efficiency. The demand is likely to drive via replacement versus a new implementation competition. All these factors are likely to propel the growth of LED work lights during the forecast period.
INSIGHTS BY END-USERS
The concept of the smart factory has been implementing in the developed regions such as the US and European regions. With lighting being one of the key components of the manufacturing industry, commercial lightings have moved from conventional lighting solutions to smart lighting solutions. Vendors have been focusing on the industrial IoT revolution through its cloud-based IIoT platforms. Thus, they have combined intelligent lighting, smart sensors, and software to develop new efficiencies and real-world ROI for industrial environments worldwide. The increased focus to decrease carbon emissions is diversifying energy dependency and decreasing the cost. This transaction is likely fueling the demand for innovative work light products. Vendors catering to the global work light market can consider building a strategic network channel along attractive and revenue efficient packages to meet new lighting demands.
Hospitality is one of the key end-user segments, which is a prominent user of work lights for decoration and soothing effects. It plays a vital role in the attraction and retention of the customer base. Hospitality, a major contributor to the tertiary sector in India, is currently emerging as a thriving industry as the country has become a preferred destination for numerous local and foreign tourists. The increase in tourism has also boosted opportunities for the lighting industry as the market for modern and creative lighting fixtures and lamps have tripled.
INSIGHTS BY GEOGRAPHY
The APAC region is expected to reach a revenue of over $22 billion by 2025. Being the most diverse area in the world, the region has high prospects for work light market participants. A booming real estate sector, favorable policy policies, and expanded support for high-efficiency lighting, together with the ongoing replacement of established outdoor lighting, are projected to push the demand dynamically. The Asia Pacific region would continue to become a major consumer of lighting products, and it is expected to become a major supplier of LED chips and packages, complemented by increasing demand for products and components. China held the largest share in the APAC lighting market in 2019. This is due to the increasing need for energy efficiency and environmentally sustainable lighting goods in the field of operation, such as highways, railways and houses.
INSIGHTS BY VENDORS
The global work light market share is fragmented due to the presence of local and global players. Philips Lighting, Osram, and HARMAN International (Samsung) are the key leading vendors. The market is highly concentrated in developed countries, such as the US and other Western European countries, while it is in its nascent stage in developing economies such as China and India. As global players increase their footprint, regional vendors will find it increasingly difficult to compete with them, especially in terms of technology and customer base. Key players compete in terms of products, technology, and reach. Therefore, vendors must expand their geographical presence, while reviving domestic demand to achieve sustained growth.
The work light market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Segmentation by Product Type
- Festoon Lights
- North America
- South Korea
- Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia