Germany Indoor LED Lighting - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)

Increasing development in the industrial sector and an increase in the number of residential houses are expected to drive the growth of LED lighting market

• In terms of value, industrial and warehouse lighting was expected to hold the largest share in 2023, followed by residential, commercial, and agricultural lighting. German industrial companies make a significant contribution to the country's prosperity at around 60% of total R&D expenditure. Companies are also involved in strategic development. For instance, in 2023, Osvětléní Černoch s.r.o. built a new production and storage hall to increase its industrial production capacity. This indicated an increase in the number of industries and storage areas and an increase in the use of LED lighting.
• In terms of volume, residential lighting accounted for the largest share in 2023, followed by commercial, industrial and warehouse, and agricultural lighting. From 2017 to 2020, Germany's homeownership rate declined slightly. About 49.1% of the population lived in apartments in 2021, and in 2022 it reached 46.7%. This made Germany one of the countries with the lowest home ownership rates and the largest market for rental apartments in Europe. This marked the growth of rental accommodation, which also accelerated the adoption of LEDs in the country.
• In the area of innovation, Philips unveiled the new Philips TrueForce LED high bay universal lamp in 2023. It is easy to install, has a low initial investment, saves energy, and is especially suitable for industrial applications in warehouses and retail areas. In 2019, the company expanded its presence in the cathedral city of Cologne with the opening of the TRILUX Light Campus. These developments are driving the growth of the LED lighting market.

Germany Indoor LED Lighting Market Trends

Rise in number of immigrants and high purchasing power of consumers to drive the growth of LEDs

• Germany's population increased by 1.3% (+1,122,000 people) in 2022, following only 0.1% (+82,000 people) the year before. At the end of 2022, there were about 84.4 million people living in Germany. This development is due to a substantial increase in net immigration to 1,455,000 people (2021: 329,000), mainly caused by the refugee movements from Ukraine. Thus, the growing number of immigrations and population is expected to create more LED penetration for the need for illumination in the country. Between 2017 and 2020, the homeownership rate in Germany decreased slightly. In 2021, about 49.1% of the population lived in an owner-occupied dwelling, and in 2022, it reached 46.7%. This makes Germany one of the countries with the lowest homeownership rate and the biggest rental residential real estate market in Europe. This indicates the growth of rental accommodations, which also surges the LED penetration in the country.
• In Germany, disposable income is high, which results in the rising spending power of individuals and affording more money on new residential spaces. Germany’s per Capita income reached USD 48,562.1 in December 2022, compared to USD 51,202.9 in December 2021. Compared to some developed nations, it has high purchasing power even though per capita income was decreasing compared to the previous year. For instance, as of 2021, Brazil had USD 7732.4, and France had USD 25,337.7. In January 2021, the “Federal Funding for Efficient Buildings” program was launched in Germany. Anyone who owns property in Germany or who is looking to buy property in Germany can apply for the funding. The energy efficiency program also includes lighting energy efficiency building. Such instances are further expected to surge the demand for LED lighting in the country.

Increase in green buildings and certification scheme to drive the growth of LED lights

• The development of the commercial and industrial sectors has been aided by the expansion of the IT and automobile industries. Turnover in building construction increased by 8.2% in Q1 2020 compared to Q1 2019. In 2018, the construction sector saw EUR 4.7 billion (USD 5.07 billion) of total investments, out of which 20.3% were directed toward the construction of residential and non-residential buildings. However, compared to March 2022, there was a decline in building permits of 10,300. Since May 2022, fewer permits have been issued for new homes than were issued during the same month a year earlier. Despite the decline in new construction, the chances to design green buildings could be very large. By the end of 2022, there were already over 2,800 certified buildings, up from only 550 in 2013. In 2022, deals of EUR 11.2 billion (USD 12.08 billion) were made with buildings that had earned sustainability certification. Consequently, the rise in construction indicates more houses and buildings to be built, thus increasing the demand for LED.
• Electricity demand in the commercial sector tends to be around 8-10 hours. Electricity use in the industrial sector tends not to fluctuate through the day or year. Electricity demand in the residential sector varies for about 7 to 9 hours. Additionally, a test experiment in Bad Hersfeld, Germany, in 2022 allowed locals to modify the settings for the streetlights to suit their individual preferences. The pilot connected sensors and AI-based controls to replace 154 streetlights with LEDs. These activities fuel the market expansion for LED lighting.

Germany Indoor LED Lighting Industry Overview

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