Indian LED Lighting Market Outlook

According to recent industry assessments, the Indian LED lighting market size attained a value of USD 5.50 billion in 2024. Supported by the rising penetration of energy-efficient lighting systems, robust infrastructural developments, and government-led initiatives promoting LED adoption, the market is projected to grow at a CAGR of 13.00% between 2025 and 2034, reaching USD 18.67 billion by 2034. As India increasingly shifts toward sustainable energy solutions, LED lighting continues to emerge as a dominant segment of the broader lighting industry, redefining illumination standards across residential, commercial, and industrial applications.

LED (Light Emitting Diode) lights have gained substantial popularity in the Indian market due to their longer lifespan, higher energy efficiency, and lower environmental impact compared to traditional lighting technologies such as incandescent bulbs, CFLs, and fluorescent tubes. As the country intensifies its focus on energy conservation and carbon footprint reduction, LED technology has become central to national strategies for sustainable development and smart infrastructure.

The strong policy support from the Indian government—such as UJALA (Unnat Jyoti by Affordable LEDs for All), Street Lighting National Programme (SLNP), and various energy efficiency initiatives—has further accelerated LED adoption across rural and urban regions. These initiatives, combined with declining LED prices and growing consumer awareness of long-term cost savings, continue to drive the market expansion.

Indian LED Lighting Market Size and Share

In 2024, the Indian LED lighting market reached a valuation of USD 5.50 billion, accounting for a major share of the country's overall lighting sector. LED products dominate the market, capturing an overwhelming majority of the total lighting sales owing to their superior performance, durability, and energy efficiency. Among product categories, LED bulbs and tube lights command a significant share owing to their wide use in residential spaces, while LED streetlights, panel lights, and industrial luminaires exhibit strong demand across institutional and commercial settings.

The residential segment accounts for the highest market share due to widespread adoption of LED bulbs and lamps, fuelled by affordability and government distribution programmes. The commercial segment—including retail outlets, office buildings, educational institutions, and hospitality establishments—is also witnessing rising LED uptake driven by the demand for aesthetically pleasing and energy-saving lighting solutions. Meanwhile, the industrial segment is increasingly adopting LED high bay and floodlights to enhance illumination quality and improve operational efficiency.

With continuous price declines and expanding manufacturing capabilities, India has emerged as one of the fastest-growing LED lighting markets globally, attracting significant participation from domestic manufacturers and international players.

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Indian LED Lighting Market Trends

The Indian LED lighting market is characterised by several transformative trends that are reshaping the competitive landscape and influencing consumer preferences:

  • Rising Adoption of Smart LED Lighting Solutions:
    Smart bulbs, connected lighting systems, and IoT-enabled solutions that allow remote operation, automation, and customisation are rapidly gaining popularity, especially in urban and premium residential sectors.

  • Shift Toward Sustainable Lighting Technologies:
    Growing emphasis on reducing carbon emissions and adopting energy-efficient technologies is driving LED usage in both public and private infrastructure projects.

  • Integration of LEDs in Smart Cities:
    As India continues to develop smart cities, LED lighting is becoming integral to streetlighting, public spaces, smart homes, and commercial complexes.

  • Declining Cost of LED Products:
    The sharp decline in LED prices due to large-scale manufacturing and technological advancements has made LED lighting accessible to a wider consumer base.

  • Increasing Preference for Advanced Aesthetic Lighting:
    Architectural lighting, mood lighting, and decorative LED solutions are gaining traction among consumers seeking visually appealing home and office interiors.

  • Growth of Domestic Manufacturing:
    Under the “Make in India” initiative, several domestic manufacturers are expanding production capacity, reducing dependence on imports, and strengthening supply chains.

These trends collectively reflect India’s ongoing transformation toward efficient, smart, and sustainable lighting systems.

Drivers of Growth

The Indian LED lighting market is being propelled by several key growth drivers:

1. Government-led Energy Efficiency Initiatives:
Programmes such as UJALA and SLNP have significantly increased nationwide LED deployment, replacing millions of inefficient bulbs with energy-saving alternatives.

2. Rapid Urbanisation and Smart City Projects:
Urban development and infrastructural improvements are creating extensive demand for LED streetlights, architectural lighting, and commercial luminaires.

3. Growing Consumer Awareness:
Consumers increasingly recognise the long-term cost benefits of LED lighting, including energy savings, lower maintenance expenses, and extended product lifespan.

4. Expansion of Real Estate and Construction Activities:
The booming residential, commercial, and industrial construction sectors drive substantial demand for LED luminaires, panel lights, ceiling lights, and outdoor lighting systems.

5. Technological Advancements in LED Manufacturing:
Improvements in semiconductor technology, chip efficiency, and thermal management enhance LED performance and fuel adoption.

6. Reduction in LED Prices:
Mass production and technological innovations have led to significant price reductions, making LED products more accessible across rural and urban markets.

These drivers continue to shape the strong market trajectory, supporting widespread adoption across diverse sectors.

Indian LED Lighting Market Segmentation

The market can be divided based on product, application and region.

The market on the basis of product is segmented into:
  • Panel Lights
  • Down Lights 
  • Street lights  
  • Tube Lights
  • Bulbs
  • Others

It finds applications in the following sectors:

  • Commercial
  • Residential
  • Institutional
  • Industrial

On the basis of region, the market is divided into:

  • North Region
  • East and Central Region
  • West Region
  • South Region

Competitive Landscape

Some of the major players explored in the report by Expert Market Research are as follows:

  • Bajaj Electricals Limited
  • Havells India Ltd
  • Wipro Limited
  • Goldmedal Electricals Pvt. Ltd
  • Syska LED Lights Pvt Ltd
  • Signify Holding
  • Crompton Lamps Ltd
  • Finolex Cables Ltd
  • Corvi LED Pvt Ltd
  • Halonix Technologies Private Limited
  • Others

Challenges and Opportunities

Challenges

  • High Penetration of Unorganised Players:
    The presence of low-cost, low-quality products in the market affects the growth of organised, premium LED brands.

  • Dependency on Imported Components:
    Although domestic manufacturing is rising, significant reliance on imports for LED chips and electronic drivers persists.

  • Price Sensitivity in Rural Regions:
    Price-conscious consumers in rural and semi-urban markets continue to rely on cheaper alternatives, limiting premium product penetration.

  • Quality Concerns and Counterfeit Products:
    The market is still battling proliferation of substandard LED products that compromise brand credibility and user trust.

Opportunities

  • Growing Demand for Smart Lighting:
    Expansion of smart homes and IoT applications creates lucrative opportunities for advanced lighting solutions.

  • Rural Electrification Initiatives:
    Government efforts toward increasing electrification in rural areas open new markets for affordable LED products.

  • Expansion in Industrial and Commercial Sectors:
    LED lighting is increasingly becoming a standard in warehouses, airports, commercial complexes, and manufacturing plants.

  • Sustainability and Green Building Certification:
    Green building projects heavily emphasise LED adoption, creating significant market opportunities.

  • Export Potential:
    India’s growing manufacturing capabilities position the country as a future hub for LED product exports.

Indian LED Lighting Market Forecast (2025–2034)

The Indian LED lighting market is expected to witness robust growth over the forecast period of 2025–2034. With the market valued at USD 5.50 billion in 2024, it is projected to grow at a CAGR of 13.00%, reaching USD 18.67 billion by 2034. The residential sector will continue to dominate due to the widespread acceptance of LED bulbs and lamps, while the commercial and industrial sectors will experience accelerated growth owing to large-scale infrastructure and smart city projects.

Smart lighting, solar-powered LED systems, and IoT-integrated luminaires are expected to emerge as key growth areas. The push toward domestic manufacturing, coupled with supportive government policies and declining component costs, will further solidify India’s position as one of the fastest-growing LED markets globally.

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