The report tracks general lighting, automotive lighting and backlighting as the three largest lighting-market sectors at present, with general lighting (broken down into numerous segments, of which residential is the largest) accounting for about 75% of the total market in 2010.
The worldwide lighting market will grow to approximately EUR 110 billion ($159 billion) in 2020, with 80% of that total from general lighting, according to a report from McKinsey & Company (Munich, Germany).
The global LED lighting market is expected to grow from EUR 7 billion in 2010 to EUR 40 billion in 2016 – a compound annual growth rate (CAGR) of 34%. Subsequently, growth is expected to slow down, with a CAGR of 13% from 2016 to 2020. The LED lighting market will amount to almost EUR 65 billion ($94 billion) by 2020, representing close to 60% of the total lighting market.
The significant differences in LED technology versus other lighting technologies will lead to a fundamental disruption of the lighting industry along the entire value chain. Standard lighting approaches are being challenged by entirely new possibilities enabled by LEDs, such as design flexibility, or the ability to dynamically change the color temperature of light. The controllability of LED-generated light enables intelligent lighting systems, and it is estimated that the revenue from control-system components will reach EUR 7 billion in 2020.
The residential LED lighting has slower market penetration, but is likely to be worth over EUR 20 billion by 2020. Architectural lighting has been an early adopter of LED lighting due to benefits such as color control, and is expected to see 85% LED penetration by 2020. Rapid growth in LED penetration is also expected in hospitality-, shop- and outdoor-lighting applications