The rise in the usage of LEDs and the stricter regulations for the marine industry with respect to safety lights, increasing demand for energy-efficient lighting will drive the market at a high CAGR during the forecast period.
The Marine Lighting Market was valued at USD 356.5 Million in 2020 and is expected to reach USD 526.2 Million by year 2028, at a CAGR of 4.90% CAGR during the forecast period (from 2018 – 2026). The growth of the market is majorly driven by increasing seaborne trade activities, growth of shipbuilding industry, and growing demand for cruise & commercial ships are the factors driving the market growth. However, price fluctuations of raw materials may hamper the market growth.
The compartment and utility segment is expected to grow continuously over the forecast period owing to its significance in commercial marine application. These lights are ordered by guidelines to be made of blast confirmation materials. Container and commercial ships are the key users of these lighting. Light-Emitting Diodes (LEDs) are estimated to hold the largest share of the market, by technology, LED lights have a higher lifespan and electrical efficiency than halogen and xenon lights. Shipyards across the globe are adopting LED lights as these lights are more energy efficient and have better luminosity. Hence, LEDs are projected to be the largest segment by technology.
The rising shipping activities in the countries of Latin America such as Mexico, Brazil, Panama, and Colombia is creating the marine lighting market of the Latin American region to hold significant share of the market. Further, the oil & gas industry of Middle East & Africa (MEA) region is playing crucial role in the transportation activities through waterways, which is further anticipated to make the Middle East & Africa a promising region for marine lighting market. Also, North America is one of the key regions of the global market and is also estimated to grow with decent growth rate over the forecast period.
As on date, many companies like Lumitec LLC, Quick S.p.A. unipersonale, OSRAM GmbH, Alpenglow Marine Lights, LLC, AZZ Inc., Marine Light Corp, Light Corporation Group, Imtra Corp., Innovative Lighting, Vision X Europe, Aqualuma LED Lighting, ENSTO GROUP, Savage Marine, Nemalux Inc., Shadow Caster, Inc., and others are operating in the marine lighting marketplace.
Comparatively economical nature of water transportation compared with other modes of transportation is boosting the growth of global shipping industry, which will positively impact the demand for marine lightings over the projected period of time.
Rising demand for commercial ships in APAC countries such as China, Indonesia, Japan, South Korea, and Russia is a major factor for the rising demand for functional lighting segment of the market.
Light-Emitting Diodes (LEDs) hold a significant share in the marine lighting market. LEDs do not emit heat radiations, which makes them safer for marine lighting applications. Shipyards across major ports of several countries are substituting other existing lighting technologies with LEDs due to the host of benefits they offer. Hence, LEDs are projected to be the rapid-growing segment by technology.
Component and utility lights are functional and authorized by regulations to be made of explosion-proof materials. Commercial ships such as oil tankers, container ships, bulk cargo, and general cargo, are the major users of these lights.
In passenger ships, usage of decorative lights is relatively higher to enhance the customer experience.
Almost all governments across the globe have specific lighting requirements defined for the marine industry. For example, the U.S. Coast Guard Navigation Rules, International-Inland, specifies lighting requirements for every type of watercraft. With the regulations being more critical about the use of the navigation and safety lights, ship-manufacturers are anticipated to demand more of such lights with properly defined specifications.
European shipbuilding industry is also anticipated to play a major role in the steady growth of the market.
The growth rate is majorly due to the presence of large fleet of ships in the European countries such as U.K., Germany, and Greece. Hence, with the increasing marine transportation activities tied with presence of huge fleet in the European region is expected to create major opportunities for the marine lighting manufacturers over the forecast period.