UK LED Lighting Market

UK LED Lighting Market Overview:

The UK LED lighting market size reached USD 2.9 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 6.0 Billion by 2033, exhibiting a growth rate (CAGR) of 8.30% during 2025-2033.The market is being fueled by a growing emphasis on energy efficiency and sustainability, aided in part by the UK's net-zero ambitions. Significant technology developments and innovation, together with strong regulatory and governmental backing, continue to alter the business. The expanding use of smart and connected lighting systems, particularly those linked with IoT, is gaining pace, aided by rapid urbanization and continuous infrastructure development in the residential, commercial, and public sectors.

UK LED Lighting Market Trends:

Rapid Urbanization and Infrastructure Development

As per the UK LED lighting market forecast, urbanization and infrastructure development significantly influence the growth of the market. As cities expand and new infrastructure projects emerge, there is a growing need for efficient and durable lighting. In 2019, 56.3 million individuals resided in urban areas across England. The fast expansion of metropolitan areas increases demand for street lighting, public space illumination, and commercial facility lighting. LED technology, with its high energy efficiency and extended lifespan, is ideal for these applications. Urban planners and local governments are increasingly using LEDs for street lights, roads, and public parks to save money on maintenance and energy while enhancing illumination quality. Infrastructure development initiatives, such as the construction of new residential, commercial, and industrial buildings, drive the demand for innovative lighting solutions. LED lighting is frequently used for new developments due to its ability to fulfill high energy efficiency criteria and adapt to a variety of design specifications.

Rise of Human-Focused Lighting Solutions

Lighting setups that match the body's natural rhythms are gaining traction in the UK. These systems adjust colour temperature and brightness to support people’s sleep, focus, and well-being throughout the day. Demand is especially strong in offices, schools, hospitals, and care homes, where improving mood and productivity is a priority. Developers and architects are now working with lighting specialists earlier in the planning phase to build HCL into project designs from the start. Smart LED control systems that personalise lighting based on time of day or user preferences are also becoming more common. What used to be a niche feature is now being treated as an essential element of healthier indoor spaces.

Lighting-as-a-Service Model Gaining Ground

Instead of buying LED lighting systems outright, more UK businesses are switching to subscription-style contracts. Under this model, companies pay a monthly fee for installation, maintenance, and upgrades. It’s especially appealing to those looking to cut upfront costs and improve energy efficiency without taking on long-term technical responsibilities. Government-backed energy-saving initiatives are also encouraging take-up. Lighting vendors benefit too; they lock in long-term clients and recurring revenue. With buildings under pressure to meet environmental targets, this shift is helping owners act faster. It also opens the door to regular technology updates without the hassle of buying new hardware every few years. This trend is becoming especially popular in the commercial lighting segment.

Digital Channels Driving Market Reach

Online sales of LED lighting products in the UK have surged, driven by wider product availability, better pricing, and quick delivery options. Both consumers and business buyers are increasingly turning to e-commerce platforms to compare features, check reviews, and order in bulk. Manufacturers and distributors are investing in their own online storefronts, digital catalogues, and targeted ad campaigns to capture this demand. B2B platforms and procurement tools have also become more sophisticated, offering tailored recommendations, account-based pricing, and automated reordering. As traditional sales channels face growing competition from digital-first players, the pressure to improve online presence is forcing a rethink of how lighting products are marketed and sold. These shifts are contributing to new lighting industry trends across the region.

UK LED Lighting Market Growth Factors:

Increasing Focus on Energy Efficiency and Sustainability

The drive toward energy efficiency and sustainability is a major factor propelling the growth of the lighting market in the UK. As the UK aims to meet its ambitious environmental targets, including a net-zero greenhouse gas emissions goal by 2050, there is a significant push to reduce energy consumption across various sectors. LED lighting technology aligns perfectly with this goal, as it offers substantial energy savings compared to traditional incandescent and fluorescent lighting. LEDs are known for their lower energy consumption and longer lifespan. They use up to 80% less energy than incandescent bulbs and have a lifespan of up to 25,000 hours compared to just 1,000 hours for traditional bulbs. This efficiency translates into reduced carbon emissions and lower electricity bills, making LED lighting an attractive option for both residential and commercial users. The UK government has implemented various policies and incentives to encourage the adoption of energy-efficient technologies. The Energy Savings Opportunity Scheme (ESOS) mandates large organizations to undertake energy assessments and identify opportunities for savings, including switching to LED lighting. The Green Deal and Energy Company Obligation (ECO) schemes provide financial support for energy efficiency improvements in homes, including LED retrofitting.

Significant Technological Advancements and Innovation

Technological advancements and innovation are crucial drivers of the LED industry in the UK. The continuous development of LED technology has led to improvements in efficiency, brightness, and functionality, making LEDs more appealing to a broader range of applications. Recent innovations include advancements in smart lighting solutions that integrate with home automation systems and allow users to control lighting remotely via smartphones and voice assistants. Features such as tunable white light, which adjusts the color temperature based on the time of day or user preferences, and color-changing LEDs have expanded the versatility of LED lighting. Improvements in chip technology and thermal management have enhanced the performance and durability of LEDs. The development of more energy-efficient and longer-lasting LEDs contributes to their increasing adoption in both residential and commercial sectors. The introduction of high-output LEDs suitable for UK industrial lighting and high-quality options for retail and hospitality environments shows the range of possibilities offered by continued innovation in the field. This progress also supports a more accurate LED forecast for emerging use cases.

UK LED Lighting Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on product type, installation, and application.

Product Type Insights:

• LED Lamps and Modules
• LED Fixtures

The report has provided a detailed breakup and analysis of the market based on the product. This includes LED lamps and modules and LED fixtures.

Installation Insights:

• New Installation
• Replacement

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes new installation and replacement.

Application Insights:

• Residential
• Outdoor
• Retail and Hospitality
• Offices
• Industrial
• Architectural
• Others

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes residential, outdoor, retail and hospitality, offices, industrial, architectural, and others.

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UK LED Lighting Market News:

• In April 2025, UK-based Lazer Lamps Ltd launched its AIR LED light bar, showcasing British design, engineering, and manufacturing. Though introduced in Australia and New Zealand, the AIR series highlights the UK's expertise in vehicle lighting innovation. Built for heavy trucks, it features corrosion-resistant coatings, a lifetime-guaranteed lens, an IP68 rating, and advanced thermal management. The product reinforces the UK’s position in premium LED exports and durable lighting solutions for global commercial vehicle markets.
• In February 2025, Transport for London retrofitted 6,000 LED lights at King’s Cross St Pancras, reducing carbon emissions by nearly 300 tonnes and saving GBP 455,000 annually. The LEDs, mostly UK-sourced, cut energy use by 1,400 MWh per year, enough to power 500 homes. Over 40% of the Tube network now uses LED lighting, helping London target net-zero carbon by 2030 and boosting local supply chains in the UK lighting sector.
• In July 2024, Signify launched a new Ecolink range of competitively priced LED lighting designed specifically for the UK market to meet the needs of electrical professionals. The Ecolink range includes a variety of LED luminaires for day-to-day projects, offering quality, energy efficiency, and flexibility in ordering.

UK LED Lighting Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK LED lighting market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK LED lighting market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK LED lighting industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.