Market Forecast by Countries (Germany, United Kingdom, France, Italy, Russia, Spain, Rest of Europe), By Installation (New, Retrofit), By Product Type (Lamps, Luminaires), By Sales Channel (Retail/Wholesale, Direct Sales, E-Commerce), By Application (Indoor, Outdoor) And Competitive Landscape
| Product Code: ETC4610622 | Publication Date: Jul 2023 | Updated Date: Nov 2025 | Product Type: Report | |
| Publisher: 6Wresearch | Author: Ravi Bhandari | No. of Pages: 200 | No. of Figures: 90 | No. of Tables: 300 |
According to 6Wresearch internal database and industry insights, the Europe LED Lighting Market was valued at USD 10.8 billion in 2024 and is projected to reach nearly USD 18.4 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 7.9% during the forecast period (2025-2031).
Below mentioned are the evaluation of year-wise growth rate along with key drivers:
| Years | Est. Annual Growth (%) | Growth Drivers |
| 2020 | 6.5 | Increased demand for energy-efficient solutions and smart lighting technologies. |
| 2021 | 7.1 | Rising awareness of environmental benefits and LED adoption in residential and commercial sectors. |
| 2022 | 7.3 | Stringent government regulations on energy consumption and sustainability. |
| 2023 | 7.5 | Increased demand for LED retrofit solutions in industrial and commercial applications. |
| 2024 | 7.7 | Technological advancements in LED lighting and growing smart city initiatives. |
Europe LED Lighting Market report thoroughly covers the market by countries, installation type, product type, sales channel, and application. The market report provides an unbiased and detailed analysis of ongoing market trends, opportunities/high growth areas, and market drivers, which would help stakeholders devise and align their market strategies according to the current and future market dynamics.
| Report Name | Europe LED Lighting Market |
| Forecast period | 2025-2031 |
| CAGR | 7.9% |
| Market Size | USD 18.4 billion by 2031 |
| Growing Sector | Energy Efficiency |
The Europe LED lighting market is experiencing a strong uptrend primarily owing to the rising demand for energy-saving lighting in the residential and commercial sectors. Environmental awareness, government regulations aimed at energy saving, and increasing acceptance of smart lighting are the primary reasons for this market growth. LED lighting is becoming more preferred due to its lower initial investment, its longer operational life, and the perks it brings to nature. Besides that, the gradual development of smart cities and IoT-enabled solutions is likely to boost the demand for sophisticated LED lights, thus uplifting the entire region.
Below mentioned are some growth drivers and their impact on market dynamics:
| Drivers | Primary Segments Affected | Why It Matters |
| Energy Efficiency Regulations | Product Types (Lamps, Luminaires) | Reduces energy consumption, lowers electricity costs, and drives demand for LED solutions. |
| Technological Advancements | Product Types (Smart LED) | Innovations in smart LED systems enable energy monitoring and control via IoT integration. |
| Government Incentives for Sustainability | Installation Types (New, Retrofit) | Encourages energy-efficient retrofit projects, driving demand for LED technologies. |
| Adoption of Smart Lighting Systems | Application (Indoor, Outdoor) | Promotes the integration of smart lighting solutions in residential, commercial, and urban infrastructure. |
| Rising Urbanization & Infrastructure Development | Application (Outdoor) | Boosts demand for street and outdoor LED lighting solutions for cities and urban areas. |
Europe LED Lighting Market is expected to grow significantly, registering a CAGR of 7.9% during the forecast period of 2025-2031. Technological innovations in LED lighting, regulatory measures favouring energy efficiency, and increasing environmental consciousness among consumers and enterprises together are the main factors that drive the market. The trend of acquiring more and more smart and connected lighting systems is likely to give a push to the market growth even more. Moreover, replacement of common lighting installations with LEDs facilitated by the emergence of smart city projects, will together increase the demand for LED lighting solutions in the region.
Below mentioned are some major restraints and their influence on market dynamics:
| Restraints | Primary Segments Affected | What This Means |
| High Initial Costs | All Product Types | Initial investment in LED systems can be higher compared to traditional lighting, limiting adoption. |
| Lack of Skilled Workforce | Installation & Service Segments | Skilled labor shortages could delay the adoption and installation of advanced LED systems. |
| Supply Chain Disruptions | All Product Types | Impacts the timely delivery of components, increasing lead times and costs. |
| Technological Obsolescence | Product Types (Smart LED) | Rapid technological advancements may lead to older LED models becoming obsolete. |
Fluctuations in raw material costs, especially for semiconductors and LED chips, are affecting pricing in the LED lighting sector. Furthermore, the rapid pace of technological advancements poses a challenge for manufacturers to keep up with innovation while maintaining cost-efficiency. Stringent regulatory standards related to energy consumption and environmental sustainability require significant investments in research and development to meet evolving government requirements. Additionally, the high initial cost of LED systems remains a key barrier to widespread adoption, particularly in budget-sensitive markets.
Some major trends contributing to the development of Europe LED Lighting Market growth are:
Here are some investment opportunities in the Europe LED Lighting Industry:
Here are some top companies contributing to Europe LED Lighting Market Share:
| Company Name | Philips Lighting |
| Established Year | 1891 |
| Headquarters | Eindhoven, Netherlands |
| Official Website | Click Here |
Philips Lighting is a global leader in LED lighting solutions, offering a wide range of energy-efficient lighting systems for residential, commercial, and industrial applications. Their smart lighting technologies have been widely adopted in smart city and connected lighting projects.
| Company Name | Osram Licht AG |
| Established Year | 1919 |
| Headquarters | Munich, Germany |
| Official Website | Click Here |
Osram is a key player in the LED lighting market, offering innovative products and solutions across various sectors, including automotive, industrial, and general lighting. They specialize in energy-efficient LED solutions and advanced lighting technologies.
| Company Name | General Electric (GE) Lighting |
| Established Year | 1892 |
| Headquarters | Boston, Massachusetts, USA |
| Official Website | Click Here |
GE Lighting is a pioneer in the development of energy-efficient lighting solutions, including LED technologies. The company provides LED solutions for both residential and commercial markets, with a strong focus on sustainability and smart lighting integration.
| Company Name | Zumtobel Group |
| Established Year | 1950 |
| Headquarters | Dornbirn, Austria |
| Official Website | Click Here |
Zumtobel is known for its high-quality LED lighting solutions for commercial, architectural, and industrial applications. The company focuses on providing customizable, energy-efficient lighting systems integrated with advanced control technologies.
| Company Name | Acuity Brands |
| Established Year | 2001 |
| Headquarters | Atlanta, Georgia, USA |
| Official Website | Click Here |
Acuity Brands is a leading manufacturer of LED lighting solutions for commercial and industrial markets, with an emphasis on energy-efficient products and smart lighting technologies. They provide advanced, integrated lighting solutions that optimize energy usage.
European rules, including the EU Ecodesign Directive, establish obligatory energy efficiency criteria for lighting goods, advocating for a shift towards more energy-efficient alternatives. The EU’s Energy Labelling Regulation significantly promotes LED adoption by offering unambiguous energy labels that assist consumers in making educated choices. Furthermore, governmental initiatives such as the EU Green Deal seek to diminish the carbon footprint of lighting solutions, promoting the adoption of environmentally sustainable and energy-efficient technologies in both residential and commercial domains.
The Europe LED Lighting market's future is heralded by upcoming strong growth, which will be greatly supported by technological innovations, energy-efficient products, and increasing consumer demand for smart lighting systems. Consequently, as energy regulations become more stringent, it is anticipated that a larger number of organizations and private households will opt for LED lighting and thus avail of the dual benefit of sustainability and reduced operating costs. Besides, the urban migration trend and smart city initiative are likely to create a substantial demand for high-tech and integrated outdoor as well as street lighting solutions. In addition to that, the market will keep on changing with the gradual introduction of smart, IoT-enabled, and energy-efficient lighting solutions.
The report offers a comprehensive study of the subsequent market segments and their leading categories.
According to Guneet Kaur, Senior Research Analyst 6Wresearch, smart LED systems are expected to lead growth due to their integration with IoT, enabling energy management, remote monitoring, and enhanced user experience. Smart LED solutions are increasingly preferred for residential, commercial, and outdoor lighting applications.
Retrofit solutions are growing rapidly as building owners and managers look to upgrade their existing lighting systems to energy-efficient LEDs, which offer reduced operational costs and compliance with energy regulations.
The retail/wholesale channel remains the largest due to consumer preference for purchasing LED products through physical stores, supported by strong distribution networks and ease of access.
Indoor applications, especially in residential and commercial spaces, are expected to continue dominating as energy-efficient, customizable LED solutions become standard in modern architecture.
The United Kingdom is the fastest-growing market for LED lighting, driven by governmental sustainability initiatives, widespread retrofitting programs, and increasing adoption of smart lighting in residential and commercial projects.
The report subsequently covers the market by following segments and subsegments:
| 1 Executive Summary |
| 2 Introduction |
| 2.1 Key Highlights of the Report |
| 2.2 Report Description |
| 2.3 Market Scope & Segmentation |
| 2.4 Research Methodology |
| 2.5 Assumptions |
| 3 Europe LED Lighting Market Overview |
| 3.1 Europe Regional Macro Economic Indicators |
| 3.2 Europe LED Lighting Market Revenues & Volume, 2021 & 2031 |
| 3.3 Europe LED Lighting Market - Industry Life Cycle |
| 3.4 Europe LED Lighting Market - Porter's Five Forces |
| 3.5 Europe LED Lighting Market Revenues & Volume Share, By Countries, 2021 & 2031 |
| 3.6 Europe LED Lighting Market Revenues & Volume Share, By Installation , 2021 & 2031 |
| 3.7 Europe LED Lighting Market Revenues & Volume Share, By Product Type , 2021 & 2031 |
| 3.8 Europe LED Lighting Market Revenues & Volume Share, By Sales Channel , 2021 & 2031 |
| 3.9 Europe LED Lighting Market Revenues & Volume Share, By Application, 2021 & 2031 |
| 4 Europe LED Lighting Market Dynamics |
| 4.1 Impact Analysis |
| 4.2 Market Drivers |
| 4.3 Market Restraints |
| 5 Europe LED Lighting Market Trends |
| 6 Europe LED Lighting Market, 2021 - 2031 |
| 6.1 Europe LED Lighting Market, Revenues & Volume, By Installation , 2021 - 2031 |
| 6.2 Europe LED Lighting Market, Revenues & Volume, By Product Type , 2021 - 2031 |
| 6.3 Europe LED Lighting Market, Revenues & Volume, By Sales Channel , 2021 - 2031 |
| 6.4 Europe LED Lighting Market, Revenues & Volume, By Application, 2021 - 2031 |
| 7 Germany LED Lighting Market, 2021 - 2031 |
| 7.1 Germany LED Lighting Market, Revenues & Volume, By Installation , 2021 - 2031 |
| 7.2 Germany LED Lighting Market, Revenues & Volume, By Product Type , 2021 - 2031 |
| 7.3 Germany LED Lighting Market, Revenues & Volume, By Sales Channel , 2021 - 2031 |
| 7.4 Germany LED Lighting Market, Revenues & Volume, By Application, 2021 - 2031 |
| 8 United Kingdom LED Lighting Market, 2021 - 2031 |
| 8.1 United Kingdom LED Lighting Market, Revenues & Volume, By Installation , 2021 - 2031 |
| 8.2 United Kingdom LED Lighting Market, Revenues & Volume, By Product Type , 2021 - 2031 |
| 8.3 United Kingdom LED Lighting Market, Revenues & Volume, By Sales Channel , 2021 - 2031 |
| 8.4 United Kingdom LED Lighting Market, Revenues & Volume, By Application, 2021 - 2031 |
| 9 France LED Lighting Market, 2021 - 2031 |
| 9.1 France LED Lighting Market, Revenues & Volume, By Installation , 2021 - 2031 |
| 9.2 France LED Lighting Market, Revenues & Volume, By Product Type , 2021 - 2031 |
| 9.3 France LED Lighting Market, Revenues & Volume, By Sales Channel , 2021 - 2031 |
| 9.4 France LED Lighting Market, Revenues & Volume, By Application, 2021 - 2031 |
| 10 Italy LED Lighting Market, 2021 - 2031 |
| 10.1 Italy LED Lighting Market, Revenues & Volume, By Installation , 2021 - 2031 |
| 10.2 Italy LED Lighting Market, Revenues & Volume, By Product Type , 2021 - 2031 |
| 10.3 Italy LED Lighting Market, Revenues & Volume, By Sales Channel , 2021 - 2031 |
| 10.4 Italy LED Lighting Market, Revenues & Volume, By Application, 2021 - 2031 |
| 11 Russia LED Lighting Market, 2021 - 2031 |
| 11.1 Russia LED Lighting Market, Revenues & Volume, By Installation , 2021 - 2031 |
| 11.2 Russia LED Lighting Market, Revenues & Volume, By Product Type , 2021 - 2031 |
| 11.3 Russia LED Lighting Market, Revenues & Volume, By Sales Channel , 2021 - 2031 |
| 11.4 Russia LED Lighting Market, Revenues & Volume, By Application, 2021 - 2031 |
| 12 Spain LED Lighting Market, 2021 - 2031 |
| 12.1 Spain LED Lighting Market, Revenues & Volume, By Installation , 2021 - 2031 |
| 12.2 Spain LED Lighting Market, Revenues & Volume, By Product Type , 2021 - 2031 |
| 12.3 Spain LED Lighting Market, Revenues & Volume, By Sales Channel , 2021 - 2031 |
| 12.4 Spain LED Lighting Market, Revenues & Volume, By Application, 2021 - 2031 |
| 13 Rest of Europe LED Lighting Market, 2021 - 2031 |
| 13.1 Rest of Europe LED Lighting Market, Revenues & Volume, By Installation , 2021 - 2031 |
| 13.2 Rest of Europe LED Lighting Market, Revenues & Volume, By Product Type , 2021 - 2031 |
| 13.3 Rest of Europe LED Lighting Market, Revenues & Volume, By Sales Channel , 2021 - 2031 |
| 13.4 Rest of Europe LED Lighting Market, Revenues & Volume, By Application, 2021 - 2031 |
| 14 Europe LED Lighting Market Key Performance Indicators |
| 15 Europe LED Lighting Market - Opportunity Assessment |
| 15.1 Europe LED Lighting Market Opportunity Assessment, By Countries, 2021 & 2031 |
| 15.2 Europe LED Lighting Market Opportunity Assessment, By Installation , 2021 & 2031 |
| 15.3 Europe LED Lighting Market Opportunity Assessment, By Product Type , 2021 & 2031 |
| 15.4 Europe LED Lighting Market Opportunity Assessment, By Sales Channel , 2021 & 2031 |
| 15.5 Europe LED Lighting Market Opportunity Assessment, By Application, 2021 & 2031 |
| 16 Europe LED Lighting Market - Competitive Landscape |
| 16.1 Europe LED Lighting Market Revenue Share, By Companies, 2024 |
| 16.2 Europe LED Lighting Market Competitive Benchmarking, By Operating and Technical Parameters |
| 17 Company Profiles |
| 18 Recommendations |
| 19 Disclaimer |