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

Increased tourism and government initiatives in public places in Japan to boost the demand for LED lights in the country

• In terms of value share, in 2023, public places accounted for the majority of the share, followed by streets and roadways and others. Public places in Japan have grown over the years with increasing travel and tourism. The Government of Japan (GOJ) has been gradually lifting travel restrictions since the start of the COVID-19 pandemic. Given these positive developments in border controls and the industry's efforts to encourage Japanese consumers to travel abroad, now is the perfect time for the US travel industry to promote its destinations and services to the Japanese market. Thus, the growth in tourism creates an opportunity for the country to display its public places in a beautified manner. Amusement parks and parking lots in airports and railway stations have gone through various developments due to increased tourism, thus increasing the penetration of LED lights in this segment.
• In terms of volume share, in 2023, public places accounted for the majority of the share, followed by streets and roadways and others. The majority of LED lights are used in the public places segment due to the overwhelming response from tourism and the growth in technological advancement. The Tokyo government launched a campaign to promote energy-saving activities by converting home lighting to LEDs. Under the 2020 Action Plan formulated in 2016, the Tokyo Metropolitan Government aims to become a "Smart City Tokyo" that is constantly evolving, dynamic, open to the world, and has excellent environmental performance.
• Japanese government-led initiatives are expected to develop new roadways and redevelop existing national highways and other roadways. These factors are also propelling the demand for LED lights in the outdoor segment in Japan.

Japan Outdoor LED Lighting Market Trends

Construction of new stadiums and installation of LED lights to drive the growth of the market

• The number of stadiums segment is expected to witness growth from 105 units in 2022 to 128 units in 2030, exhibiting a CAGR of 2.5%. The sports sector has undergone several changes in recent years. For instance, the Toyota Stadium in Aichi, Japan, where Signify installed its connected lighting system Interact Sports in 2019. Before the Rugby World Cup 2019 and the Tokyo Olympic Soccer matches slated for 2020, Total Light Control - TLC for LED technology was installed at the International Stadium Yokohama (Nissan Stadium) in Yokohama City, Japan. Ahead of the 2019 Rugby World Cup Japan, Signify installed LED lights in Kobe Misaki Stadium. These elements support the expansion of the LED market in the area.
• The nation is helping to build stadiums for numerous sports. For instance, work on Nagasaki Stadium City will start in 2022. The project was previously projected to cost JPY 70 billion (GBP 427.4 million or EUR 493.6 million). Still, it is now anticipated that the total cost will exceed JPY 80 billion due to changes in the planning and increased material costs. To save energy, the stadium will also have LED lighting installed. According to a contract awarded by the Japan Sport Council, a new stadium will be built in central Tokyo in 2022 to replace the Chichibunomiya Rugby Stadium. The new stadium is expected to break ground in 2024. After 2027, it will start operating. Additionally, Kanazawa Stadium will be constructed by 2023 and opened before the start of the 2024 season. These factors will drive the LED market in the coming years.

The increasing number of households drives the growth of the LED lighting market

• The overall population of Japan was estimated to be 125.51 million in 2021. In Japan, there are 1.3 children for every woman in 2021. Around 811.6 thousand live births were registered in Japan in 2021. The market will expand due to the rise in residential space availability. Approximately 859.5 thousand home starts were started in Japan in 2022. Increased government spending, housing program subsidies, and the government's anticipated focus on major infrastructure projects will all contribute to Japan's residential market expansion, ultimately resulting in higher LED sales. Consequently, more commercial land will be purchased as a result of the drop in the price of commercial real estate, and thus, will contribute to the greater use of LEDs in coming years.
• Around 55.7 million private households existed in Japan as a whole in 2020. About 54.2% of those were nuclear families, and 38.1% were single-person households. In 2022, there were 2.2 household members on average. Japan had 4.4 rooms per home, on average. In 2021, Japan had 55.6 million homes. In the same year, the indicator showed a 0.6% year-over-year growth. The indicator increased by 8.5% from 2010 to 2021. The expansion of LEDs in Japan will be fueled by an increase in the number of households.
• Nearly 46.1% of households in Japan had at least one passenger car as of August 31, 2020. The number of newly registered motor cars in Japan fell from roughly 4.45 million the year before to about 4.2 million in 2022. Additionally, in 2022, Japan saw the registration of almost 4.2 million new cars. These registrations show that there is a growing market for LEDs in the automobile sector.

Japan Outdoor LED Lighting Industry Overview

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