The global LED lighting market is experiencing a profound change, intelligent lighting, healthy light environment and green sustainable to drive the industry’s development of the three core driving force.
Lighting is no longer simply lighting up a space, but the art of integrating technology, health and design. 2025, the global LED lighting market presents a clear “dual-track” pattern: on the one hand, the traditional general lighting market growth is weak and fierce price wars, and on the other hand, the smart lighting, health lighting and other high value-added segments of strong growth. Strong growth.
This differentiation signals that the industry is shifting from purely pursuing scale expansion to a comprehensive shift to a new dimension of competition centered on technology density and scenario value.
01 State of the market: scale and structural differentiation
The global LED lighting market is expected to reach USD 158 billion by 2025, mainly due to the wide adoption of LED technology, smart lighting systems, and sustainability initiatives.
However, market researcher TrendForce Tibco expects the global LED lighting market size to decline 4.4% to $53.573 billion in 2025, reflecting the challenges the market is facing.
This decline stems mainly from the uncertainty of the global economic environment, the continuing downturn in the construction industry, and the slowdown in new installations and renovation and remodeling projects. Despite this, LED lighting has become absolutely dominant with a penetration rate of over 80% in the overall lighting market.
China’s market is pivotal in the global position, occupying 44% of the global LED lighting market, the world’s largest market. 2025 China’s LED market size is expected to exceed 200 billion yuan, with an annual growth rate of 10%.
02 Technology Trends: Intelligent and Healthy Lighting in Focus
2025 Guangzhou Light Asia Exhibition revealed six major trends in the LED lighting industry: simulation of the sun’s light spectrum of the “sky mirror light” has become the focus of AI technology to accelerate the development of intelligent lighting applications, backlighting and up and down the light design is favored, the product parameters of the dial adjustable function to the penetration of outdoor lighting, suitable for the elderly lighting market has been the attention of enterprises, Energy saving of lamps and lanterns is still an important issue.
Full-spectrum lighting technology is ushering in a critical year of large-scale land application in 2025. Numerous manufacturers showcased full-spectrum products for indoor lighting applications, with sky mirror lamps that mimic the sunlight spectrum becoming the focus of the show.
These products have 10,000 levels of adjustable color temperature and rich color variation, which can not only meet the main function lighting, but also support ambient mood lighting.
The rapid development of AI technology is empowering the lighting industry. By integrating sensors, cameras and smart devices, AI systems can create hyper-personalized lighting experiences.
Manufacturers are utilizing AI algorithm technology to automate light distribution and create various spectral application scenarios.
Elderly-friendly lighting has become a segmented scenario for companies to focus on. With the aging of the global population intensifying, the lighting market for the elderly shows a development potential that cannot be ignored.
Xinnofei, Prudent Optoelectronics, Foshan Lighting, Guoxing Optoelectronics and other companies have displayed a series of lighting products for the elderly.
03 Product Innovation: Fusion of Design Aesthetics and Functionality
New changes in product design appear in 2025. Many lamps and lanterns increase the backlight source and the design of the upper and lower light, which can increase the brightness of the space, but also create an atmosphere and enhance the sense of spatial hierarchy.
Luminaires with this type of design are mainly used in commercial and household ceiling lights and linear light products. For example, the C5 series ceiling light for children’s rooms presented by Leadsun has a dual light source that simulates natural light to care for eyesight and features intelligent voice control technology.
LED ceiling light market demand has surged and become a popular product in the home lighting market.LED ceiling light is widely recognized and favored for its energy saving, environmental protection, high brightness and other advantages.
First-tier brand LED living room lights have also become a new favorite in home decoration, with its unique design and energy-saving and environmental protection features, by more and more people.
04 Competitive Landscape: Head Concentration and Differentiated Breakout
International brands dominate the high-end market, Philips, Opple and other brands with technical advantages to occupy more than 30% of the high-end share, and accelerate the layout of the intelligent ecological.
Local enterprises seek to break out through differentiation strategies, TCL, Leishi and other cost-effective and channel sinking strategy, to maintain the advantage in the low-end market; SMEs are focusing on niche areas (such as art lamps and lanterns, special lighting).
In the first half of 2025, LED lighting industry mergers and acquisitions activity is active. Wood Forest announced that it intends to acquire 51% of the equity of Xinhang Technology, strategically targeting aviation lighting; its Lundvans signed an acquisition agreement with German lighting brand LOBLICH, deepening the layout of professional lighting.
Lighting companies are also accelerating the pace of capitalization. A number of enterprises to accelerate the process of listing, including Tongbao photoelectric into the inquiry stage, Yao Tai shares IPO application has been accepted, Hualai technology IPO application has been accepted, and so on.
05 Channel change: the deep integration of online and offline
E-commerce channels continue to expand, online sales scale is expected to reach 100 billion yuan in 2025, live bandwagon and social e-commerce contributes 40% increment.
The rise of experiential retail, physical stores transformed into “lighting experience hall”, providing light environment simulation and intelligent control system demonstration, to enhance the conversion rate.
Branding overseas has become a key strategy for lighting companies to expand their markets and enhance their competitiveness.2025 In the first half of the year, lighting companies continued to accelerate the pace of going overseas to further seize the overseas market.
06 Policy environment: energy conservation, environmental protection and green development
In the “dual-carbon” goal and the general trend of green development, energy saving lamps and lanterns is still an important topic of lighting. Lighting to meet the needs of the basic light source at the same time, the need to more intelligent, lower energy consumption, recyclable direction to accelerate the evolution.
China’s “dual-carbon” goal and green building policy promote the popularization of energy-saving products. For example, the Green Building Action Program explicitly requires that the energy efficiency of lighting in public buildings be improved by more than 20%.
Although the treaty on the phase-out of some mercury-containing lamps that will come into effect in 2025 has pushed up the cost of enterprise transformation in the short term, it has accelerated the process of technological iteration and prompted enterprises to turn the pressure of compliance into an opportunity for product upgrading.
07 Future outlook: challenges and opportunities
Looking ahead, the LED lighting industry will show three major trends: intelligent ecological, green and healthy, globalization and localization coexist.
Lighting system extends from single product to whole-house intelligence, and deeply integrates with smart city and low-altitude economy (e.g. drone lighting inspection). Zero-carbon factory certification, light health certification has become the new standard for brand competition, UV LED sterilization technology or become the next wind.
Enterprises need to balance the domestic consumption upgrade and overseas market expansion, through the “technology + culture” output (such as the new Chinese design overseas) to build brand barriers.
The smart lighting market is expanding rapidly at a CAGR of 19.2% and is expected to reach a global market size of USD 11,573 million by 2025.
The health lighting segment also performed well, with a 15% year-on-year increase in market share. And the plant lighting market also maintained growth driven by demand for energy efficiency in Europe, and is expected to reach $1,366 million by 2025.
The light in your home is no longer just illumination – it can mimic sunrise and sunset to promote your health, automatically soften when you wake up late at night, and even adjust the ambiance of the light color according to your mood.
These once sci-fi scenarios have now become the technological norm in the LED household lighting industry, which is quietly changing our way of life.