LED bulbs are electric lamps that produce light through light emitting diodes and are used in lighting fixtures. These contain a cluster of LEDs, which are mounted on a single base and are packed in diffuser lenses in order to spread light across a defined space. LED bulbs produce light approximately 90% more efficiently than incandescent bulbs.
These bulbs are based on solid-state lighting, which emits the light from semiconductor chip, thereby generating lesser heat than incandescent bulbs. The useful life of these lamps is defined differently than other light sources such as compact fluorescent light (CFL) or incandescent bulbs. LED bulbs do not fail or burn out, instead they face lumen depreciation in which the brightness of the bulb decreases over time.
The global LED bulbs market is expected to expand at a significant growth rate owing to the strict regulation norms regarding the banning of inefficient light bulbs. In some regions, governments have passed laws that restrict the usage of incandescent bulbs for general lighting purposes, thereby replacing them with more efficient bulbs.
However, lower awareness and dominance of fluorescent bulbs amongst the users are likely to hamper the LED bulb market. LED bulbs have a higher purchase price than other lamps; however, they require less operational costs due to high durability and reduced energy consumption. The decreasing cost of energy-efficient lamps is prompting organizations to utilize these bulbs in large-scale projects.
Therefore, several governments are supporting the manufacturing and sale of LED lamps by offering various subsidies at different levels. For instance, the Government of India has launched the UJALA scheme that provides these lamps at a lower price, thereby saving energy. The Government of China has also launched intensive promotion of energy-saving and eco-friendly products.
Numerous countries have initiated projects such as building of better roadways, smart cities and flyovers for developing infrastructure. The adoption of LED bulbs in these projects has been increasing due to their benefits such as low heat, high efficacy, and longer life.
In terms of product, the global LED bulb market can be classified into general purpose LEDs, specialty LEDs, decorative LEDs, and others. Increasing demand for LED bulbs in general purpose lighting is expected to increase at a significant pace during the forecast period. Decorative LED lamps are employed primarily in residential lighting applications such as pools, gardens, statues, and fountains. These are also utilized for functional applications such as landscaping and building facades.
Based on application, the LED bulb market can be segregated into indoor and outdoor. The indoor application segment can be further sub-segmented into residential, commercial, hospitality, retail, healthcare, industrial, and others. The outdoor application segment can be further split into highways and public places.
LED bulbs are utilized to provide similar aesthetics similar to those provided by traditional incandescent lamps accompanied by energy-saving capabilities. This, in turn, is propelling the demand for LED bulbs in the residential application segment. These lamps are widely adopted by numerous commercial spaces such as hospitality, retail, and healthcare, due to their dimmable color temperature capabilities and color temperatures, thereby delivering enhanced illumination capabilities and offering direction to end-users.