by The LED rental market has been gaining traction over the years owing to the various advantages associated with LED lights such as energy efficiency, durability, flexible installation, and minimal maintenance. LED lights consume around 90% less energy as compared to traditional incandescent or halogen lights and last 25 times longer. They also emit less heat and are highly durable making them an excellent option for outdoor application and harsh environmental conditions. With various governments implementing stringent policies and regulations towards energy conservation and efficiency, the demand for energy-efficient lighting solutions is growing rapidly.
The global LED Rental Market is estimated to be valued at US$ 19 Bn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The key trend gaining traction in the LED rental market is the increasing adoption of intelligent lighting control systems. These systems leverage IoT and wireless technologies to efficiently control lighting through centralized control and automation. They offer various benefits such as remote monitoring and adjustment of light intensity, scheduling and grouping lights as per usage, automated on/off according to occupancy sensors, and integration with other smart building systems. Intelligent LED lighting controls help in achieving over 30% energy savings. Driven by these benefits, lighting retailers and rental companies are increasingly offering customized intelligent lighting control solutions to their corporate and government clients. The market is also witnessing growing demand for LED lighting solutions integrated with advanced sensing technologies such as proximity, motion, and image sensors.
Porter’s Analysis
Threat of new entrants: The LED rental market requires high R&D investment which creates a barrier for new players to enter.
Bargaining power of buyers: Buyers have moderate bargaining power as there are many suppliers offering competitive prices for rental services.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power as there are many players offering rental services.
Threat of new substitutes: There exists low threat of substitution as LED solutions provide better features compared to traditional lighting alternatives.
Competitive rivalry: The market has high competitive rivalry with players focusing on technology innovations and service quality to gain market share.
Key Takeaways
Global LED Rental Market Demand is expected to witness high growth over the forecast period of 2023 to 2030.
Regional analysis: North America holds the largest share in the global LED rental market currently. The US and Canada are major countries contributing to the regional growth. Growth can be attributed to presence of leading rental companies and large customer base from live entertainment industry.
Key players: Key players operating in the LED rental market are BASF S.E., Bayer Cropscience AG, FMC Corporation, DowDuPont, Monsanto Company, Nufarm, SinoHarvest Corporation, Syngenta A.G., Sumitomo Chemical, and United Phosphorus. These companies are focused on expanding their product portfolio and rental network coverage to cater to growing demand.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
