Chapter One Macro-environment Analysis
1.1 Policy Environment (Political)
Globally, green and low-carbon policies continue to drive the upgrading of the lighting industry. Major economies such as the European Union, the United States, and China have all established clear phase-out schedules for traditional incandescent lamps, accelerating the full transition to LED lighting. China’s “14th Five-Year Plan for Building Energy Efficiency and Green Building Development” explicitly requires accelerating the adoption of LED lighting products and will implement a dual-control evaluation system for total carbon emissions and emission intensity starting in 2026. Calculations show that replacing 10 million incandescent lamps with LED lamps annually can reduce carbon emissions by approximately 1.6 million tons per year.
In the smart home sector, countries are introducing standards and interoperability protocols for smart home systems. The adoption of the Matter protocol is helping to overcome the fragmented ecosystem of smart lighting. Implementation of Chinese standards such as “General Technical Requirements for Smart Homes” provides institutional support for product interoperability and market scalability in smart lighting.
1.2 Economic Environment (Economic)
The global lighting market was valued at approximately USD 142.5 billion in 2024 and is projected to reach USD 190.8 billion by 2030, representing a CAGR of around 6.0%. The global penetration rate of LED lighting has reached 66%, and LED products now account for 75% of China’s exported lighting products. Although China’s lighting industry contracted by 4.9% year-over-year in 2024 to approximately RMB 589 billion, robust growth of 4–5% annually is expected between 2027 and 2030, driven by intelligent upgrades and expansion into niche segments.
The recovery of the global construction market, accelerated urbanization in emerging markets, and replacement demand in commercial and industrial lighting are key drivers of growth for the lighting industry. Cross-border e-commerce exports continue to expand, with China’s cross-border e-commerce trade volume reaching RMB 2.75 trillion in 2025, offering new channels for lighting brands to enter international markets.
1.3 Social Environment (Social)
Consumer perception of lighting is shifting from basic illumination to “lighting for health.” Rapid global population aging is driving demand for age-friendly lighting solutions, while concepts such as healthy lighting and Human Centric Lighting (HCL) are gaining rapid adoption. Post-pandemic awareness of air purification and disinfection lighting has significantly increased, propelling the UV-C LED market into a period of rapid growth.
Younger consumers are showing significantly higher acceptance of smart home technologies, including whole-home smart lightingSolutions have become the standard in the new installation market. Growing environmental awareness has also made sustainable and low-carbon lighting key factors in consumer decision-making.
1.4 Technological Environment
LED technology continues to advance, with core metrics such as luminous efficacy, color rendering index (CRI), and lifespan steadily improving. Mini LED and Micro LED technologies, originally developed for displays, are now penetrating the lighting sector, delivering higher light quality and finer control capabilities. The maturity of IoT technologies (Bluetooth Mesh, Zigbee, Matter) has laid the foundation for the large-scale adoption of smart lighting.
The integration of AI with lighting is deepening, redefining product value through features like intelligent dimming, automatic scene recognition, and predictive maintenance. Li-Fi (Visible Light Communication) technology is also achieving breakthroughs in both laboratory and commercial settings, potentially becoming a significant growth driver for the lighting industry in the future.
Chapter Two Global Lighting Market Size and Forecast
2.1 Global Lighting Market Overview
According to data from multiple research firms including Grand View Research, the global lighting market was valued at approximately USD 142.5 billion in 2025 and is projected to reach USD 190.8 billion by 2030, growing at a compound annual growth rate (CAGR) of around 6.0%. This growth is primarily driven by the replacement of traditional lighting with LEDs, rising adoption of smart lighting, expanding demand in emerging markets, and energy-efficiency policies in the building sector.
2.2 Explosive Growth of the Smart Lighting Market
The global smart lighting market is experiencing explosive growth. Valued at approximately USD 9.86 billion in 2025, it is expected to reach USD 24.3 billion by 2030, with a CAGR of about 19.8%. Key drivers include rapid expansion of the smart home market, maturation of IoT technologies, ecosystem unification through the Matter protocol, and increasing demand for intelligent upgrades in commercial buildings.
Regionally, the Asia-Pacific region is the fastest-growing market, benefiting from demand surges in emerging economies and supportive government policies. China’s smart lighting penetration rate is expected to exceed 35% by 2026, with the market size potentially surpassing RMB 100 billion.
2.3 Regional Market Landscape
The Asia-Pacific region dominates the global lighting market with a market share of approximately 48.3%, with China, as the world's largest producer and consumer of lighting products, holding a significant position. North America accounts for 21.6%, benefiting from high smart home penetration and intelligent upgrades in commercial buildings. Europe holds 19.5%, primarily driven by stringent energy efficiency regulations and green building standards.
Chapter Three In-Depth Analysis of China’s Lighting Market
3.1 Industry Scale and Growth Forecast
In 2024, China’s lighting industry reached a scale of approximately RMB 589 billion, declining by 4.9% year-over-year, primarily due to weakening overseas demand and a sluggish domestic real estate market. However, driven by factors such as intelligent upgrades, the promotion of new-energy buildings, and expansion into niche segments, steady growth is expected to resume from 2027 onward, with the industry size projected to exceed RMB 745 billion by 2030.
China’s LED lighting market is expected to grow from USD 6.59 billion in 2024 to USD 11.8 billion by 2030, representing a CAGR of approximately 10.2%. This growth is primarily fueled by increasing smart lighting penetration, upgrading demand in commercial lighting, and the expansion of emerging application scenarios.
3.2 Export Trade and Cross-Border E-Commerce
China is the world’s largest exporter of lighting products, with LED products accounting for 75% of total exports. In 2024, photovoltaic lighting product exports reached approximately USD 1.8 billion, an increase of 35% year-over-year, representing 3% of the lighting industry’s total export value. Cross-border e-commerce is becoming an important new channel for lighting exports, with China’s cross-border e-commerce import and export volume reaching RMB 2.75 trillion in 2025, a 69.7% increase compared to 2020.
Countries along the Belt and Road Initiative and Southeast Asian markets have become key growth drivers for China’s lighting exports, with mid-range lighting products continuously expanding their global market share through competitive pricing and rapid product iteration capabilities.
3.3 LED Penetration and Intelligent Transformation
Global LED lighting penetration has reached 66% and is expected to rise to 88% by 2030. Smart lighting penetration currently stands at approximately 22%, but its growth rate significantly outpaces that of the LED replacement phase, with projections indicating it will reach 65% by 2030. The gap between these two figures represents a market transformation opportunity—from “simple replacement” to “value-added upgrade.”
Chapter Four In-depth Analysis of Niche Segments
4.1 Automotive Lighting: A Steady-Growth Segment
The global automotive lighting market is projected to reach approximately USD 39.5 billion in 2025 and grow to USD 88.3 billion by 2035, with a CAGR of about 8.7%. China’s automotive lighting market was valued at roughly RMB 80.9 billion in 2024, recording a CAGR of approximately 9.7% from 2020 to 2024. LED headlight penetration continues to rise, and new technologies such as adaptive headlights, aerodynamic spectrum lighting, and dynamic turn signals are becoming key differentiators. The rapid growth of new energy vehicles is also driving increased demand for intelligent lighting integration.
4.2 Human-Centric Lighting (HCL): A New Trend in Health-Oriented Consumption
The global human-centric lighting market is expected to reach approximately USD 4.75 billion in 2025 and grow to USD 22.5 billion by 2033, with a CAGR of around 21%. By simulating natural light cycles, HCL helps regulate circadian rhythms and is widely applied in office, healthcare, education, and elderly care settings. Accelerated global aging and rising health awareness will make this segment one of the fastest-growing areas in the lighting industry.
4.3 UV-C LED: A High-Growth Segment in the Post-Pandemic Era
The UV-C LED market is experiencing explosive growth, with an estimated market size of USD 1.39 billion in 2026, projected to reach USD 5.59 billion by 2031—a CAGR of 32.2%. Applications span air disinfection, water purification, and surface sterilization. As UV-C LED chip efficiency improves and costs decline, adoption is rapidly expanding from commercial to residential use.
4.4 Horticultural Lighting: A New Engine for Agricultural Modernization
The global LED horticultural lighting market was valued at approximately USD 1.315 billion in 2024. China’s market is expected to exceed RMB 10 billion by 2030. Driven by rapid advancements in space farming, vertical agriculture, and smart agriculture, horticultural lighting has evolved from basic supplemental lighting into an integrated solution combining spectral control, intelligent management, and biological response enhancement.
4.5 Comparative Analysis of Niche Segment Sizes and Growth Rates
Chapter Five Competitive Landscape Analysis
5.1 Global Competitive Landscape
The global lighting market exhibits a competitive landscape characterized by “concentration among top players and fragmentation among smaller ones.” Signify (formerly Philips Lighting) leads globally with a market share exceeding 18.6%, followed by other international giants such as Osram, GE Lighting, and Cree. Leading companies invest over 5% of their annual revenue in R&D, continuously driving technological innovation.
5.2 Competitive Landscape in China
The Chinese lighting market remains relatively fragmented, with significant room for leading enterprises to increase their market share. MLS Co., Ltd. ranks first in the industry with approximately RMB 19.8 billion in revenue, closely followed by Foshan Electrical and Lighting, Lida Xin, and Opple Lighting. The industry is transitioning from “price competition” to “value-based competition,” with intelligence, health-focused features, and scenario-specific solutions becoming key dimensions of differentiation.
5.3 Comparison of Key Companies’ Strategies
Company |
Revenue (RMB bn) |
Core Strategy |
Key Tracks |
MLS |
~198 |
LED Packaging + Full Lighting Industry Chain |
LED Packaging, Smart Lighting, Horticultural Lighting |
Foshan Lighting |
~105 |
Brand Diversification + Automotive Lighting |
General Lighting, Automotive Lighting, Marine Lighting |
Leding |
~82 |
Smart Manufacturing + IoT Ecosystem |
Smart Home, Commercial Lighting, Educational Lighting |
Opple Lighting |
69.7 |
Brand Upgrade + Intelligent Transformation |
Residential Lighting, Commercial Lighting, Health Lighting |
NVC Lighting |
~22 |
Channel Deepening + Brand Building |
General Lighting, Project Lighting, Commercial Lighting |
Chapter Six Six Core Trends
Trend 1: Full-Scenario Penetration of Smart Lighting
Intelligent lighting is expanding from residential applications to comprehensive scenarios including commercial, industrial, outdoor, and automotive. By 2030, global penetration of smart lighting is expected to reach 65%, with China’s market penetration potentially exceeding 70%. The adoption of the Matter protocol will address ecosystem fragmentation and lower user barriers to entry. Products supporting multiple protocols—such as Bluetooth Mesh, Zigbee, and Wi-Fi—are becoming mainstream, and devices enabling interoperability across DALI, Zigbee, and Bluetooth Mesh are now dominant in the market.
Trend Two: Shift from “Luminous Efficacy Competition” to “Light Quality and Intelligence Competition”
The focal point of technological competition in the lighting industry is undergoing a fundamental shift. Over the past decade, competition centered on LED luminous efficacy and cost; today, it has pivoted toward light quality (e.g., color rendering index, spectral continuity, flicker-free performance during power interruptions) and intelligent capabilities (e.g., dimming and color tuning, scene interconnectivity, AI-driven adaptability). This indicates that value creation in the industry is migrating from hardware to software and services.
Trend Three: Deep Integration of AI and Lighting
AI technology is redefining the value proposition of lighting products. Intelligent dimming can automatically adjust illumination parameters based on ambient light, user behavior, and circadian rhythms; automatic scene recognition can switch lighting modes according to activity types (e.g., work, rest, entertainment); and predictive maintenance can anticipate luminaire lifespan and failure risks using sensor data. Cost reductions in large AI models are making edge AI deployment in lighting products increasingly feasible.
Trend Four: Green, Low-Carbon, and Sustainable Development
Under carbon neutrality targets, the lighting industry is accelerating its green transformation. Beyond the ongoing replacement of conventional lighting with LEDs, circular economy principles are permeating the entire lighting value chain—from recyclable materials and modular design to luminaire recycling systems. In 2024, photovoltaic lighting product exports grew by 35% year-over-year, reflecting strong global demand for sustainable lighting solutions.
Trend Five: Vertical Deepening in Niche Markets
Growth opportunities in the lighting industry are increasingly concentrated in specialized segments. Professionalized demands in vertical applications—such as horticultural lighting, marine lighting, cleanroom lighting, medical lighting, and sports venue lighting—are unlocking substantial market potential. These niche segments share common characteristics: high technical barriers, strong customer loyalty, and profit margins superior to those of general lighting.
Trend Six: Servitization and Business Model Innovation
Lighting companies are transitioning from pure product manufacturers to lighting service providers.The Lighting as a Service (LaaS) model is rapidly gaining traction in commercial settings, where customers no longer purchase luminaires but instead pay monthly fees for lighting services. Value-added services—including design consulting, installation, intelligent operation and maintenance, and energy efficiency management—are emerging as new profit drivers. This transformation not only enhances customer retention but also provides companies with more stable recurring revenue streams.
Chapter Seven Investment and Financing Analysis
7.1 Global Investment and Financing Overview
Approximately 395 startups operate globally in the smart lighting sector, with 57 having secured funding and collectively raised around USD 231 million. Investment focus areas include smart lighting control systems, human-centric lighting, horticultural lighting, and UV-C disinfection lighting. The active involvement of specialized lighting investment firms such as Lam Capital reflects investor confidence in innovation within the lighting industry.
7.2 Investment Opportunities in the Chinese Market
Investment opportunities in China’s lighting industry primarily lie in the following areas: first, domestic substitution opportunities in smart lighting chips and control systems; second, growth potential in niche segments such as horticultural lighting, marine lighting, and medical lighting; third, channel opportunities through cross-border e-commerce brand globalization; and fourth, business model innovation driven by the transition toward lighting-as-a-service. The LED driver IC market, valued at approximately USD 4.7 billion in 2025, is projected to reach USD 8 billion by 2031, offering significant room for domestic substitution.
7.3 M&A and Integration Trends
Mergers and acquisitions (M&A) and integration activities remain highly active in the lighting industry, primarily focusing on three directions: first, large enterprises acquiring smart lighting startups to rapidly address technological gaps; second, cross-industry M&A, where international giants acquire Chinese lighting companies to gain manufacturing capacity and distribution channel advantages; and third, vertical integration, with lighting companies expanding upstream into chips, drivers, and control components.
Chapter Eight Summary and Outlook
8.1 Key Findings
● The global lighting market is projected to reach USD 190.8 billion by 2030E (CAGR 6.0%), with smart lighting expected to reach USD 24.3 billion by 2030E (CAGR 19.8%), making it the fastest-growing major segment.
● China's lighting industry is projected to reach RMB 745 billion by 2030E, with smart lighting penetration expected to reach 65% by 2030E, marking a strategic shift from "price competition" to "value competition."
● UV-C LED is the fastest-growing niche segment (CAGR 32.2%), while human-centric lighting (CAGR 21%), horticultural lighting, and automotive lighting are all experiencing double-digit growth.
● The integration of AI and lighting, green low-carbon initiatives, and servitization are reshaping the competitive landscape of the industry.
8.2 Recommendations
● Short-term focus: Domestic substitution of smart lighting control chips, cross-border e-commerce lighting brands, and LED driver ICs.
● Medium-term strategy: Vertical niche segments such as human-centric lighting, horticultural lighting, and marine lighting.
● Long-term tracking: AI + lighting integration, Li-Fi communication, and Lighting-as-a-Service (LaaS) business models.
● Risk Warning: Global economic uncertainty, fluctuations in raw material prices, trade barriers, and risks associated with technological iteration
8.3 Industry Outlook
Looking ahead to 2027–2030, the lighting industry will undergo a profound transformation from “hardware manufacturing” to “intelligent lighting services.” Intelligence, health orientation, and sustainability will become the three dominant themes of industry development. Companies that seize opportunities in technological innovation, deep scenario penetration, and service-oriented transformation will gain the greatest growth dividends from this industry shift. For Chinese enterprises, the core strategy for capturing the critical five-year window lies in reinforcing their manufacturing advantages while accelerating brand building, technological innovation, and international expansion.
Reprinted from: Murphy Business Insights
Link: https://mp.weixin.qq.com/s/ydYWsYQ7gVSmbeGcbLsE4g