China LED Market Report

China LED Market Overview:

The China LED market size reached USD 35.4 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 161.2 Billion by 2033, exhibiting a growth rate (CAGR) of 17.42% during 2025-2033. The growing technological progress, rising use in various sectors like residential, commercial, and industrial due to environmental consciousness, supportive government policies, and increasing focus on cost reduction are some of the factors impelling the market growth.

China LED Market Analysis:

• Major Market Drivers: The market is experiencing robust growth owing to government policies supporting energy conservation and green building practices. Additionally, advancements in light-emitting diode (LED) technology, which offer greater energy savings and longer lifespans compared to traditional lighting solutions, are supporting the market growth.
• Key Market Trends: There is a shift towards smart and connected lighting systems, driven by the internet of things (IoT) revolution. This is enhancing the functionality of lighting solutions through features, such as remote control, color changing, and integration with smart home systems, attracting a tech-savvy user base.
• Competitive Landscape: There is intense competition among established players who are expanding their production capacities and investing in new technologies. Mergers and acquisitions (M&A) are common as companies aim to enhance their market reach and technological capabilities.
• Challenges and Opportunities: Price competition and standardization issues are influencing the China LED market revenue. However, there are opportunities due to the growing environmental awareness among individuals and the focus on urban and rural infrastructure development.

China LED Market Trends:

Increasing Demand in the Automotive Sector

LED technology in the automotive sector is gaining traction over the traditional method of lighting. LEDs have been advantageous due to their great longevity, energy efficiency, and a minute size that enables design creativity and promotes safety. There is an increase in the use of LEDs in cars for headlights, taillights, signal lights, and interior lighting, with all of them maximizing visibility and power savings. Additionally, the rise in popularity of electric vehicles (EVs), which require more energy efficiency to prolong battery longevity, is driving LED demand in China. For instance, in 2023, the Chinese electric truck market was valued at US$ 2.4 billion. The IMARC Group projects that the market will expand at a compound annual growth rate (CAGR) of 23.26% from 2024 to 2032, reaching US$ 15.6 billion in 2032.

Infrastructure Development and Urbanization

The rapid construction of infrastructure in China is driving the need for LED lighting. The rate of urbanization for people living in one place all year increased by more than three times since 1982, reaching 66.2% in 2023, as per the China in Numbers (2023) report by the United Nations Development Programme (UNDP). There is a heightened demand for long-lasting and energy-saving lighting options in residential, commercial, and public areas with the construction of new cities. LEDs, with their long lifespan and high energy efficiency, are perfectly suited to meet these demands. Government efforts are also vital as they aim to improve the aesthetic appeal and safety of urban areas by enhancing public lighting systems. Moreover, LEDs are being utilized in smart city initiatives like advanced traffic management and enhanced public safety elements, supporting the China LED market growth.

Technological Advancements and Cost Reduction

Local businesses are investing in research and development (R&D) to enhance the quality and effectiveness of LED lighting, leading to notable progress compared to conventional lighting methods. These improvements consist of better color accuracy, increased brightness efficiency, and extended durability in LED items. Furthermore, the increased production scale and improved manufacturing processes in China are lowering the price of LEDs, allowing a wider range of individuals to afford them. This important price decrease allows for extensive use among residential, commercial, and industrial users, supported by the growing recognition of energy efficiency and sustainable behaviors among the people.

China LED Market Segmentation:

IMARC Group provides an analysis of the key China LED market trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on product type, application and installation type.

Breakup by Product Type:

• Panel Lights
• Down Lights
• Street Lights
• Tube Lights
• Bulbs
• Others

Panel lights accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the product type. This includes panel lights, down lights, street lights, tube lights, bulbs, and others. According to the report, panel lights represented the largest segment.

Panel lights are identified as the most significant segment in the market as per the China LED market forecast. Their widespread use in commercial, residential, and industrial areas contributes to their prominence. The key selling point of the panel lights is energy efficiency ideal for even light allocation that is easy to integrate into modern architectural motifs. They are typically used in office buildings, retail stores, and urban settings, where there is a need for extensive and uniform lighting options. For instance, in May 2023, Luminis launched its Inline family of exterior luminaires, including bollards and columns with independently adjustable LED light modules, designed to enhance urban and landscaped environments. The luminaires offered various heights, beam angles, and lumen outputs, providing flexible and impactful illumination for spaces such as parks and plazas. Moreover, their versatility is increased by the ability to be used in various sizes and installation methods like recessed, suspended, or surface-mounted, which makes them suitable for a wide range of projects, including both new builds and remodels.

Breakup by Application:

• Commercial
• Residential
• Institutional
• Industrial

Residential holds the represent the leading market segment

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes commercial, residential, institutional, industrial. According to the report, residential accounted for the largest market share.

Residential holds the largest market share among the segments. This is primarily attributed to the increasing population and urbanization, which lead to higher demand for residential construction and, as a result, residential lighting. In China LED market recent developments, Aculux’s AX series brought in WarmDim® and Tunable White technologies in March 2023, offering personalized lighting options for homes with gradual adjustments in color temperature resembling halogen lighting and real-time color changes to fit different activities and moods. These improvements gave homeowners the opportunity to design comfortable surroundings and personalized lighting in their homes. Homeowners are looking for energy-saving and smart lighting options to improve their comfort and save on electricity costs. The increasing trend of home automation and smart homes is contributing to the acceptance and usage of advanced lighting systems that could be remotely controlled and can be tailored as per individual needs. Further, aesthetic features are a major criterion in the choice of lighting for homes since fixtures would act as adornments to enrich the preferred ambiance and in turn, improve the overall living space.

Breakup by Installation Type:

• New Installation
• Retrofit Installation

Retrofit installation hold the biggest China LED market share

The report has provided a detailed breakup and analysis of the market based on the installation type. This includes new installation and retrofit installation. According to the report, retrofit installation represented the largest segment.

Retrofit installation stands out as the biggest segment in market segmentation based on installation type. The increasing focus on energy efficiency and sustainability worldwide is a major factor behind the shift for upgrading lighting systems to advanced technologies like LED, for both commercial and residential users. In April 2023, Luminaire LED's Vandal Resistant Downlight (VRDL) series, featuring IK10 impact resistance and IP66 water and dust resistance, provided reliable illumination in high-abuse commercial environments. Furthermore, updating lighting through retrofitting is a budget-friendly option to improve lighting quality and decrease energy usage without requiring a total overhaul of current electrical systems. Government regulations and incentives that focus on reducing carbon footprints and promoting green building practices are also strengthening the market growth. The combination of these factors, along with the declining price of LED technology, makes retrofit installations a very appealing choice for property owners seeking to update their lighting systems and realize ongoing energy cost savings.

Breakup by Region:

• Guangdong
• Jiangsu
• Shandong
• Zhejiang
• Henan
• Others

Guangdong dominates the market

The report has also provided a comprehensive analysis of all the major markets in China, which include Guangdong, Jiangsu, Shandong, Zhejiang, Henan, and others. According to the report, Guangdong represented the largest segment.

Guangdong province dominates the LED lighting market due to its strong manufacturing sector and leadership in technology innovation, especially in electronics and lighting. Guangdong is home to numerous leading manufacturers and suppliers in the lighting industry, benefiting from its modern infrastructure, strategic location close to major export ports, fosters a conducive business environment. This region plays a pivotal role in shaping the China LED market outlook, leveraging its robust industrial base to meet both domestic and international demands efficiently. Furthermore, the vast industrial network in Guangdong not just fulfills local needs but also functions as a key export hub for lighting products worldwide, positioning it as a critical region in the lighting industry.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market.
• Major participants in the market are proactively implementing tactics, such as advancements in technology, increasing production capabilities, and engaging in mergers and acquisitions (M&A) in order to enhance their market presence. For example, in August 2023, Signify inaugurated a new LED lighting production facility in Jiujiang, China, to manufacture branded LED products for the Chinese and global markets. Businesses are concentrating on creating LED solutions that are more energy-efficient and affordable to meet the increasing demand in both local and international markets. Moreover, leading China LED companies are broadening their range of products to incorporate intelligent and linked lighting options, utilizing IoT technology to provide improved features like remote management and compatibility with household automation systems. To maintain a competitive edge in the market, these tactics are enhanced through partnerships with tech companies and investments in R&D.

China LED Market News:

• April 2024: NVC Lighting, a subsidiary of NVC International Holdings improved its PRO line of commercial LED lighting products, which now feature upgraded versions of the Addison PRO and Yale PRO.

China LED Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecast, and dynamics of the China LED market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and China LED market recent opportunities.
• The study maps the leading, as well as the fastest-growing, markets. It further enables stakeholders to identify the key country-level markets within the region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the China LED industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.