According to a new market report published by Credence Research Inc “LED Tube Lights Market – Growth, Share, Opportunities, Competitive Analysis, and Forecast, 2016 – 2026,” the global LED Tube Lights market worldwide was valued at US$ 3,705.0 Mn in 2017 and is set to cross US$ 13,000.0 Mn by 2026, growing with a CAGR of 15.2% during the forecast from 2018 to 2026.
The market for LED tube lights is increasing considerably as these tubes provide a quick, continuous and transparent supply of light and consume less power. Due to their long life and higher efficiency, these lighting tubes are increasingly replacing conventional fluorescent tube lights in residential and commercial applications. One of the most important factors driving the growth of the global market for LED lights is the stringent energy consumption regulations that are being enforced in all major countries around the world.
In addition, the fact that LED tube lights offer high efficiency is another important factor leading to increased adoption. Accordingly, these factors are expected to drive the demand for LED tube lights from 2018 to 2026 during the forecast period. However, the high initial cost of LED tube lights is one of the limiting factors that negatively impact market growth.
In 2017, the residential segment had the largest share in the overall market for tube lights. Strong consumption regulations introduced by major countries around the world, coupled with incentives offered to reduce energy consumption, are expected to drive demand for LED tube lights. In addition, shorter payback time is another key factor that has led to the increasing adoption of LED tube lights across the residential segment.
Accordingly, on the basis of the factors mentioned above, the residential segment is expected to remain dominant throughout the forecast period from 2018 to 2026. With new commercial construction projects, the segment will show robust growth during the forecast period. The architectural field is the early introduction of LED tube lights in the U.S. and European countries. With steadily declining LED tube light prices, the architectural sector has reached more than 70% of the share of commercial LED lighting usage.
The U.S. in 2017. The demand for LED tube lights was dominated by the’ up to 5′ foot category. In addition, the segment is expected to continue to dominate over the forecast period from 2018 to 2026. One of the most important factors leading to the growth of the’ up to 5 feet ‘ category is the fact that these tube lights are primarily used for lighting purposes in comparatively smaller areas.
Such tube lights are used in offices, residences, educational institutions and retail stores, among others. The segment of 5 to 10 inches, due to its ability to be used for both smaller and larger areas, is projected to be the fastest growing segment during the forecast period.
The internal competition between LED light tube manufacturers is high given the similar type of product offering. In contrast, similar price offers further increase competition and often lead to price warfare. In addition, with an increasing share of LED lighting in the overall lighting industry, internal competition among competitors is expected to be strong during the forecast period. Given the enormous potential of the LED lighting industry, an increasing number of manufacturers are expected to enter the market in the coming years.
Some major players operating in the global LED tube light industry include Koninklijke Philips N.V., Cree, Inc, LG Electronics Inc., GE Lighting, Hubbell Incorporated, Cooper Industries, Samsung LED, Acuity Brands, Inc, Lighting Science Group Corp, Panasonics Corp, Eaton Lighting and OSRAM Licht AG among others.