India LED Lighting Market By Type (LED Bulbs & Lamps, Batten Lights, Downlights, Spotlights, Others), By End Use Sector (Commercial, Residential, Institutional, Industrial), By Application (Outdoor Lighting, Indoor Lighting, Automotive Lighting, Others), By Region, Competition, Forecast & Opportunities, 2021-2031F

Market Overview

India LED Lighting Market was valued at USD 3.79 Billion in 2025 and is expected to reach USD 7.46 Billion by 2031 with a CAGR of 11.95% during the forecast period. LED (Light Emitting Diode) lighting in India refers to the use of energy-efficient lighting solutions in homes, offices, streets, and industries, replacing traditional incandescent and fluorescent lights.

LED technology offers significant advantages such as low energy consumption, longer lifespan, and minimal maintenance, making it an attractive solution for both rural and urban lighting needs. In India, LEDs are used extensively for residential illumination, public infrastructure, automotive lighting, and smart city projects.

The India LED Lighting Market is witnessing rapid growth, fueled by government programs like UJALA (Unnat Jyoti by Affordable LEDs for All) and Street Lighting National Programme, which have distributed millions of LED bulbs and streetlights nationwide. In addition, supportive regulatory frameworks promoting energy conservation and reduced carbon emissions are encouraging adoption among households, corporations, and municipalities. Declining LED prices and growing awareness of cost savings have also made the technology more accessible to the masses.

The market is expected to rise steadily due to continued infrastructure development, increasing electricity access in rural areas, and rising demand for smart and connected lighting systems. With the push towards sustainable development, Indian manufacturers are investing in advanced LED technologies, including tunable lighting and IoT-integrated systems. As consumer preferences shift towards energy-conscious and eco-friendly solutions, the LED lighting industry in India is set to remain on a strong upward trajectory.

Key Market Drivers

Government Initiatives and Policy Support

The Indian government has aggressively promoted energy-efficient lighting across the country through flagship programs such as UJALA and the Street Lighting National Programme. By facilitating mass distribution of LED bulbs and streetlights, these initiatives are aimed at reducing energy consumption, curbing carbon emissions, and lowering public electricity bills. This has established an expansive foundation for market penetration, especially in tier‑II and tier‑III cities, where government-backed deployment acts as a catalyst for private-sector participation.

Regulatory mandates such as the Bureau of Energy Efficiency’s Minimum Energy Performance Standards (MEPS) and mandatory labelling requirements for LED products are pushing manufacturers to innovate and improve efficiency. Manufacturers are compelled to offer higher-quality, standardized luminaires, raising consumer confidence and driving wider adoption. These policies are increasingly aligning industry growth with national sustainability targets, reinforcing investor and stakeholder interest in LED lighting. Since 2018, India’s UJALA and Street Lighting National Programme have deployed over 250 million LED bulbs and 1.6 million LED streetlights across 30 states. This large-scale adoption has collectively reduced electricity consumption by around 16 gigawatt-hours per day, easing grid pressure and significantly lowering nationwide lighting-related carbon emissions and electricity costs in public infrastructure.

Energy Cost Savings and Total Cost of Ownership Advantages

For commercial buildings, industrial facilities, and even residential consumers, the financial calculus of LED lighting is compelling. While initial procurement costs of LED systems are higher, the lower operational energy consumption and significantly longer lifespans drastically lower the total cost of ownership. Compared to legacy lighting sources such as halogens and fluorescent tubes, LEDs deliver energy savings of 50–70%, translating into substantial annual reductions in electricity bills for high-usage environments like retail outlets, warehouses, and high-rise apartments.

Maintenance savings from LED’s typical life expectancy of over 40,000 hours contribute to reduced operational disruption and replacement labor costs. Facility managers increasingly favour LED retrofits in their CapEx planning cycles, appreciating the predictable return on investment and the reduced burden on maintenance teams. Over time, these cost efficiencies are reinforcing LED’s role as the preferred sustained lighting solution across commercial and industrial segments. A logistics hub in Pune installed 1,200 LED fixtures, leading to a 62% drop in lighting energy usage and a 37% annual electricity bill reduction. The total investment was recovered in just 2.4 years, showcasing how LED systems, despite higher upfront costs, deliver significant long-term operational savings and reduced maintenance for industrial and commercial buildings.

Rapid Urbanisation and Infrastructure Expansion

India’s accelerated urbanisation—spurred by smart city initiatives, metro rail expansions, expressway developments, and urban renewal projects—is generating massive demand for reliable, efficient lighting. Integrated lighting is a cornerstone of smart infrastructure, vital for street illumination, public facilities, and transit hubs. Municipal bodies and infrastructure developers are increasingly specifying LED systems for new city sectors, bridges, highways, and railway stations to ensure long-term operational efficiency.

Simultaneously, commercial real estate growth, including malls, office parks, and hospitality facilities, is driving demand for aesthetic, functional, and branded lighting. LEDs offer design flexibility (in terms of colour temperature, dimming capability, and grouping), enabling architects and contractors to enhance user experience while meeting energy efficiency targets. This infrastructure-led demand is expected to scale rapidly as urban centres across India continue to evolve. From 2020 to 2024, over 550,000 LED streetlights were installed across 25 major Indian cities, replacing outdated sodium-vapour fixtures. This transition led to an average 42% drop in municipal lighting costs annually, while also enhancing illumination quality. The initiative reflects how urban infrastructure upgrades are directly driving mass LED adoption across India’s public lighting networks.

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Key Market Challenges

Market Saturation and Price Competition

As LED lighting adoption has expanded across urban and semi-urban India, the market is now approaching saturation in major consumption clusters. Rapid penetration, especially in residential and public infrastructure segments, has led to a commoditization of basic LED products such as bulbs, tube lights, and panel lights. This saturation has intensified competition among manufacturers and distributors, resulting in aggressive price wars. While this benefits consumers in the short term, it exerts downward pressure on profit margins for manufacturers, particularly domestic players operating on tighter financial and operational bandwidths. In the absence of robust brand differentiation or proprietary technology, many companies struggle to maintain financial viability amid shrinking margins.

Low-cost imports from countries like China have flooded the market, often undercutting local manufacturers on pricing. These imported products, sometimes of substandard quality, dilute overall consumer confidence in LED technology. The inability to enforce consistent quality standards across the fragmented supply chain exacerbates the issue. Domestic manufacturers must invest in R&D, branding, and product differentiation to maintain competitiveness—an endeavor that requires capital and long-term commitment. In this crowded, cost-sensitive environment, only players with economies of scale, technological innovation, or strong brand recall are likely to sustain profitability. Without strategic consolidation and innovation, the Indian LED lighting market risks becoming unsustainably price-driven and fragmented.

Lack of Consumer Awareness and Technical Standardization

Despite the growing footprint of LED lighting, a significant segment of Indian consumers—especially in rural and semi-urban regions—remains unaware of its full benefits, particularly regarding energy efficiency, long-term savings, and environmental impact. Many end users continue to view lighting products as short-term utility items rather than long-term investments. This mindset results in price-driven decisions, leading to the purchase of inferior or non-standard LED products that fail prematurely. Poor consumer experiences due to such low-quality alternatives hinder market trust and slow broader adoption of high-grade, certified LED solutions.

Compounding this issue is the lack of consistent technical standards and labelling enforcement across the LED ecosystem. While regulatory frameworks like the Bureau of Indian Standards and energy labelling guidelines exist, adherence and inspection at the ground level remain limited. Numerous manufacturers—especially unorganized players—market products with misleading claims regarding wattage equivalency, brightness (lumens), or lifespan. This leads to confusion among buyers, reduced effectiveness of government energy-saving initiatives, and a diluted market reputation. Standardization, both in product quality and consumer education, is critical for driving sustained, responsible growth in the India LED Lighting Market. Without institutional mechanisms to ensure accountability and awareness, consumer trust will remain fragile, limiting the sector’s ability to scale inclusively across the country.

Key Market Trends

Growing Demand for Smart and Connected Lighting Solutions

The India LED Lighting Market is experiencing a significant shift toward smart and connected lighting systems, particularly in urban residential, commercial, and institutional settings. Consumers and businesses alike are increasingly seeking lighting solutions integrated with Internet of Things (IoT) capabilities, allowing remote control, automation, and energy optimization through mobile apps and sensors. Features such as motion detection, dimming control, color tuning, and programmable scheduling are now being embedded into modern LED luminaires, driven by evolving user expectations for convenience and energy efficiency.

This trend is further accelerated by the rollout of smart city initiatives and green building certifications, which mandate efficient lighting infrastructure as part of their criteria. Builders and architects are incorporating connected lighting in new construction to enhance user experience and operational efficiency. Furthermore, integration with voice assistants and smart home ecosystems is making these solutions more mainstream. As digital infrastructure improves and consumer tech adoption rises, the market is set to witness continued momentum in this space, transforming LEDs from standalone hardware into intelligent systems that offer enhanced utility and data-driven functionality.

Surge in Domestic Manufacturing and Localization Efforts

Amid global supply chain disruptions and increasing focus on self-reliance, India is witnessing a surge in domestic LED manufacturing. Government initiatives like “Make in India” and the Production Linked Incentive (PLI) scheme for electronics have encouraged local production of LED components such as drivers, chips, housings, and printed circuit boards. This shift is helping reduce dependency on imports, particularly from China, and enabling Indian manufacturers to build cost-effective supply chains suited to local market demands.

The push for localization is also improving product customization and innovation tailored for Indian consumers, such as voltage fluctuation-resilient LEDs and climate-adapted outdoor lighting. Additionally, it supports job creation, enhances export competitiveness, and fosters R&D capabilities. Several small- and mid-scale enterprises are emerging in tier-II and tier-III cities, contributing to the decentralization of manufacturing. As India moves towards becoming a global electronics manufacturing hub, the LED lighting segment stands to benefit substantially from these structural shifts, positioning it for long-term, sustainable growth.

Segmental Insights

Type Insights

In 2025, LED Bulbs & Lamps emerged as the dominant segment in the India LED Lighting Market, holding the largest share in terms of both volume and revenue. This leadership position can be attributed to the widespread household adoption of LED bulbs due to their affordability, long lifespan, and compatibility with existing fixtures. Government initiatives such as the UJALA (Unnat Jyoti by Affordable LEDs for All) scheme have played a vital role in accelerating nationwide distribution, especially across rural and semi-urban areas. The simplicity of installation, widespread availability, and low power consumption make LED bulbs the most preferred lighting solution for residential, small commercial, and institutional purposes. Additionally, the increasing consumer shift from incandescent and CFL lighting to energy-efficient alternatives further strengthens the segment's dominance.

LED Bulbs & Lamps are expected to retain their leading position during the forecast period. Growth is projected to be driven by replacement demand, increasing awareness about energy savings, and improved affordability as manufacturing scales up. Furthermore, product innovation—including smart LED bulbs with adjustable color temperatures and remote control via mobile apps—is attracting urban consumers seeking smart home integration. The low initial cost and quick return on investment also make bulbs and lamps more accessible compared to other lighting types like downlights and spotlights, which are typically used in specialized or commercial applications. As infrastructure and housing development continues across India, especially in tier-II and tier-III cities, the demand for basic and efficient lighting will further reinforce this segment’s stronghold in the overall LED lighting landscape.

End Use Sector Insights

In 2025, the residential segment dominated the India LED Lighting Market, driven by widespread adoption of LED bulbs, tube lights, and decorative fixtures across households. Government programs promoting energy-efficient lighting in homes, along with increasing awareness about cost savings, have accelerated penetration in urban and rural areas alike. The affordability and ease of installation of LED products continue to make them the first choice for residential users.

This dominance is expected to persist during the forecast period, supported by ongoing housing development, rising electrification in rural regions, and growing consumer preference for smart lighting. As more households upgrade to efficient lighting solutions, the residential segment will remain the primary driver of volume growth in the India LED Lighting Market.

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Regional Insights

In 2025, South India emerged as the region with the largest market share in the India LED Lighting Market, driven by strong urban infrastructure, high electrification rates, and proactive state-level energy efficiency programs. States like Tamil Nadu, Karnataka, Telangana, and Andhra Pradesh have consistently led in implementing smart city initiatives, public lighting upgrades, and mass LED adoption programs. These efforts have created robust demand across both public and private sectors. Additionally, the region’s strong presence of information technology parks, educational institutions, and organized retail spaces has accelerated the use of commercial and residential LED lighting systems.

The region's growth is further supported by rising awareness about energy savings and increased consumer preference for modern, aesthetically appealing lighting products. South Indian cities have shown higher adoption of smart and connected lighting systems, further enhancing the value proposition of LED solutions. With favorable policies, a tech-savvy population, and increasing construction activity in both metro and tier-II cities, South India is well-positioned to maintain its leadership in the LED lighting space throughout the forecast period. Its balanced mix of commercial, residential, and institutional demand will continue to fuel sustained market expansion.

Recent Developments

• In May 2025, under the Brand Bengaluru initiative, 160 Metro pillars across 10 key junctions will feature dynamic, programmable LED facade lighting over a 5km stretch of Namma Metro. Aimed at enhancing visual appeal, the project covers areas like MG Road and Jayanagar. BMRCL has floated a tender, tasking contractors with installation, cabling, and compliance with technical specifications.
• In March 2025, Signify and Dixon Technologies announced plans to form a joint venture to manufacture lighting products in India, pending regulatory approvals. Combining Signify’s global lighting expertise with Dixon’s manufacturing capabilities, the 50:50 venture will produce LED bulbs, downlights, strips, and accessories. It aims to drive innovation and deliver cost-effective, high-quality lighting solutions for the Indian market.
• In September 2024, Christie® surpassed 250 installations of its direct-view LED video walls across India, marking a significant milestone. The Core Series III led this growth, with over 60 units installed in corporate, education, and government sectors. This achievement reinforces Christie’s strong market presence and continued leadership in delivering high-performance, versatile visual solutions for diverse applications nationwide.

Key Market Players

• Signify N.V.
• Havells India Limited
• Syska E-Retail Pvt. Ltd.
• Bajaj Electricals Limited
• Wipro Enterprises Private Limited
• Crompton Greaves Consumer Electricals Limited
• Osram
• Orient Electric Limited

Report Scope:

In this report, the India LED Lighting Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• India LED Lighting Market, By Type:

o   LED Bulbs & Lamps

o   Batten Lights

o   Downlights

o   Spotlights

o   Others

• India LED Lighting Market, By End Use Sector:

o   Commercial

o   Residential

o   Institutional

o   Industrial

• India LED Lighting Market, By Application:

o   Outdoor Lighting

o   Indoor Lighting

o   Automotive Lighting

o   Others

• India LED Lighting Market, By Region:

o   South India

o   North India

o   West India

o   East India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India LED Lighting Market.

Available Customizations:

India LED Lighting Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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