United Kingdom LED Lighting Market By Type (LED Bulbs & Lamps, Batten Lights, Downlights, Others), By Application (Outdoor Lighting, Indoor Lighting), By Installation Type (New Installation and Retrofit Installation), By End Use (Commercial, Residential, Others), By Region, Competition, Forecast and Opportunities, 2020-2030F

Market Overview

United Kingdom LED Lighting Market was valued at USD 1.78 Billion in 2024 and is expected to reach USD 2.72 Billion by 2030 with a CAGR of 7.15% during the forecast period.

The United Kingdom LED lighting market has experienced significant growth over the past decade and continues to expand steadily, driven by the nation’s increasing focus on energy efficiency, sustainability, and government-led decarbonization initiatives. The transition from traditional lighting solutions to LED systems has been accelerated by policies aimed at reducing carbon emissions and improving energy consumption across sectors. The UK government's strict regulatory framework, including the ban on halogen bulbs and initiatives promoting smart city infrastructure, has catalyzed the widespread adoption of LED technology in residential, commercial, and industrial environments. As of 2024, the UK LED lighting market is valued at approximately USD 6.94 billion and is projected to reach around USD 10.38 billion by 2030, registering a healthy CAGR of around 7.4%.

The market is segmented by product type into LED lamps and LED luminaires, with luminaires accounting for the majority of market share due to their extensive application in infrastructure projects, public lighting, and commercial establishments. However, LED lamps—especially retrofit bulbs—are witnessing faster growth owing to their affordability and ease of installation in older buildings. In terms of application, indoor lighting dominates, especially in industrial and commercial sectors, where lighting efficiency translates directly into cost savings. The residential sector is also expanding rapidly, driven by growing consumer awareness and favorable utility rebate programs. Outdoor applications, such as street lighting and architectural lighting, are growing in prominence as local authorities and municipalities modernize public lighting systems to reduce long-term operational costs.

Sales channels in the UK LED market are diverse, with physical retail and wholesale stores still maintaining strong presence, especially for small-scale purchases. However, e-commerce platforms are gaining significant traction, particularly for residential consumers and small contractors, due to wider product availability and competitive pricing. The market is also segmented by installation type into new installations and retrofits, with retrofitting dominating the landscape as property owners upgrade legacy lighting systems to meet new energy standards.

The rise of smart lighting and Internet of Things (IoT)-enabled systems further adds momentum to the market, as integrated lighting controls and automation become more accessible. Key players such as Signify, Osram, Zumtobel Group, and local suppliers are actively innovating with intelligent lighting products to stay competitive. With strong policy support, technological advancements, and rising environmental consciousness, the UK LED lighting market is set to maintain its growth trajectory in the coming years.

Key Market Drivers

Regulatory Phase-Out and Energy Efficiency Mandates

The UK government’s focus on sustainability has led to the phasing out of inefficient lighting systems. Halogen bulbs were officially banned in September 2021, and fluorescent bulbs are being phased out by September 2023. These regulatory changes are designed to promote the adoption of LED lighting, which uses significantly less energy. LED lighting now accounts for over 65% of bulb sales in the UK and is expected to reach nearly 85% in the coming years. By switching to LEDs, the country is set to reduce CO₂ emissions by 1.26 million tonnes annually, equivalent to removing over 500,000 vehicles from the roads. Households that transition to LED lighting can save between euro75 and euro250 annually on electricity bills. Lighting represents approximately 11–15% of residential electricity use, which demonstrates the strong impact of efficiency gains. Additionally, labeling requirements and minimum energy performance standards for lighting products ensure that only energy-efficient lighting options reach consumers. These government actions have triggered massive shifts in purchasing behaviors across residential, commercial, and municipal sectors.

Rising Energy Costs and Carbon Reduction Pressure

With energy prices increasing and pressure mounting to meet net-zero targets, the demand for energy-efficient solutions like LED lighting is growing. Switching to LED in commercial and public spaces can reduce electricity use by up to 80%, offering major savings. The transition to LED lighting can save up to 16.1 terawatt-hours of electricity annually—enough to power over 4.3 million homes. Such a shift can result in an annual cost reduction of more than £3 billion for public and private stakeholders. Additionally, these changes reduce carbon emissions by up to 3.9 million tonnes annually, which equals planting about 175 million trees. Commercial buildings dedicate nearly 40% of their electricity consumption to lighting, highlighting LED’s potential in lowering operational costs. Major infrastructure upgrades, including the replacement of 70% of traditional highway lighting, are ongoing across the UK. These efficiency-focused investments help organizations manage costs and align with long-term sustainability targets.

Growth of Smart and IoT-Based Lighting Systems

Technological advancements have enabled LED lighting systems to integrate with Internet of Things (IoT) infrastructure, making lighting smarter, automated, and more energy-efficient. Smart LED systems that include motion sensors, timers, daylight harvesting, and remote controls can reduce energy consumption by 30–40%. Occupancy sensors alone contribute to energy savings of up to 30%, especially in office buildings and warehouses. Despite this, only around 20% of UK commercial buildings are currently equipped with smart lighting solutions, presenting a major growth opportunity. Smart lighting can reduce overall electricity use from 12% to as low as 8% when fully deployed. The UK smart lighting segment in home applications is forecast to grow by more than 11% annually over the next few years. In larger buildings, integrated lighting control systems not only improve efficiency but also enhance safety and customization. The integration of cloud analytics and AI-enabled lighting control is expected to significantly reshape the building automation landscape.

Emergence of Lighting-as-a-Service (LaaS)

Lighting-as-a-Service (LaaS) is becoming increasingly popular in the UK due to its cost-effective and flexible approach to lighting upgrades. Under this model, businesses avoid large upfront investments and instead pay a monthly fee for lighting systems, including maintenance, upgrades, and energy management. Adoption of LaaS models has grown rapidly, especially in commercial and municipal sectors, where budget constraints often delay large capital expenditures. More than 60% of commercial building owners now consider LaaS as a viable option for lighting retrofits. The model can reduce operating costs by 20–30% while improving lighting quality and performance. LaaS contracts often include performance guarantees, ensuring energy savings and system uptime over the service period. This model has gained popularity in smart city projects, where outdoor lighting upgrades are financed through long-term service contracts. As more businesses seek sustainable solutions with predictable cash flows, the LaaS market is becoming a critical enabler for widespread LED adoption.

Technological Innovation and Falling Costs

The LED lighting industry in the UK continues to benefit from rapid technological advancements that improve performance while lowering costs. The average cost of LED bulbs has declined by more than 35% over the past five years. Modern LEDs can now produce over 170 lumens per watt—compared to just 70 lumens per watt from fluorescent tubes. LEDs also last significantly longer, with average lifespans exceeding 25,000 hours, compared to just 1,000 for incandescent and 8,000 for fluorescents. LEDs consume up to 90% less electricity than traditional bulbs, making them among the most energy-efficient lighting options available. R&D efforts from manufacturers are leading to new product designs with better thermal performance, more compact form factors, and higher color rendering indexes (CRI). Additionally, integration with controls and sensors is now standard in many LED product lines. These ongoing innovations continue to make LED lighting more accessible and attractive to a wide range of users, from individual homeowners to national infrastructure providers.

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Key Market Challenges

High Initial Costs for Smart and Commercial LED Systems

Although LED lighting provides long-term cost savings, the initial investment remains high, particularly for smart or integrated systems in commercial and industrial environments. Upgrading entire facilities with LED luminaires, smart sensors, dimmers, and control software can be cost-prohibitive for small businesses and local councils with limited capital expenditure budgets. In public infrastructure projects, budget approvals often delay implementation timelines by months or years. While residential LED bulbs have become affordable, commercial-grade LED luminaires and smart control systems still carry a high price tag, especially when integrated with building automation systems. Additionally, installation and retrofitting expenses—such as rewiring, removing old fixtures, or modifying ceilings—add to total system cost. Some small enterprises prefer to continue using older lighting technologies due to the longer payback period of smart LED systems. Moreover, businesses in leased properties may hesitate to invest in lighting upgrades they won’t benefit from in the long term. Even though Lighting-as-a-Service (LaaS) is emerging as a solution to upfront cost barriers, adoption remains relatively low due to lack of awareness or trust in service-based models. Without wider financial incentives or funding mechanisms to reduce entry costs, initial pricing will continue to be a barrier in the market’s acceleration—particularly among cost-sensitive customers and public-sector entities.

Lack of Skilled Professionals for Installation and Integration

The rising complexity of LED systems, especially those involving IoT and automation, has exposed a shortage of skilled professionals in the UK lighting industry. Traditional electricians may lack the knowledge required to install advanced lighting systems with motion sensors, daylight harvesting, and programmable dimming. With the increasing use of cloud-connected lighting and AI-based analytics, the demand for professionals who understand both electrical systems and IT networking is growing. However, vocational training programs have been slow to adapt to evolving LED technologies, leading to a shortage of specialized labor. This shortage can result in delays, errors, and increased costs in large-scale commercial and municipal installations. In addition, poorly installed or calibrated systems can underperform, reducing expected energy savings and shortening the lifespan of the LEDs. The lack of trained support staff also affects post-installation maintenance and upgrades, especially for smart lighting systems that require firmware updates or troubleshooting. Furthermore, facility managers often lack training in optimizing smart controls, leading to underutilization of intelligent features. This gap in skilled labor presents a bottleneck for rapid LED adoption, particularly in the commercial and industrial sectors. To address this, there is a pressing need for training partnerships between manufacturers, educational institutions, and certification bodies to upskill the workforce and expand nationwide LED deployment capabilities.

Disposal and Recycling Concerns for Old Fixtures

As LED lighting rapidly replaces traditional lighting technologies, the issue of waste management has become increasingly pressing in the UK. Fluorescent tubes and compact fluorescent lamps (CFLs), commonly replaced by LEDs, contain hazardous materials like mercury, requiring special handling and disposal procedures. The large-scale retrofitting of commercial and public infrastructure has resulted in growing volumes of lighting waste, putting pressure on recycling centers and disposal systems. Unfortunately, not all waste is properly recycled—illegal dumping or improper disposal of lighting waste remains a challenge, contributing to environmental contamination. Moreover, while LED lamps themselves are considered less harmful, their electronic components—including printed circuit boards, driver chips, and metal heat sinks—fall under the category of e-waste. Inconsistent e-waste recycling regulations across different UK councils complicate recycling logistics. Additionally, recycling LED fixtures can be expensive due to the cost of separating components and processing mixed materials like plastics and metals. Many consumers and small businesses lack awareness about proper LED disposal, and return/recycle schemes offered by retailers are underutilized. The environmental benefits of LED lighting risk being offset if recycling challenges are not addressed effectively. Developing standardized take-back programs, incentivizing recycling, and investing in advanced e-waste processing facilities are essential to minimize the environmental impact of lighting upgrades.

Compatibility Issues with Legacy Electrical Infrastructure

Many buildings in the UK—particularly in historical cities—feature legacy electrical systems that are incompatible with modern LED lighting. Installing LED fixtures in these settings may require rewiring, upgrading transformers, or replacing dimmer switches, which increases installation time and cost. Incompatibility is a common issue in retrofit projects where old fittings do not support LED drivers or flicker-free operation. Dimmer switches designed for incandescent bulbs, for example, may not work properly with low-wattage LED lamps, resulting in flickering, buzzing, or premature lamp failure. In commercial and public buildings, centralized lighting systems may lack the flexibility needed to integrate newer LED and smart lighting technologies. In some older buildings, cabling may not support the low-voltage wiring preferred for LED control systems, further complicating integration. This problem is especially pronounced in listed or heritage buildings, where modifications are restricted. Even when retrofits are possible, they may be limited to partial upgrades rather than full-scale LED conversions, reducing the overall benefits. These compatibility issues slow down the transition to LED lighting, particularly in the UK’s aging infrastructure. Addressing them requires flexible LED retrofit kits, universal dimmer compatibility standards, and professional audits to assess upgrade feasibility without compromising safety or architectural integrity.

Market Saturation in Basic Residential Segments

While the residential sector was among the first to adopt LED lighting in the UK, basic LED bulb adoption has reached near saturation. Most consumers have already replaced older incandescent or halogen bulbs with basic LED alternatives, limiting future growth opportunities in this segment. This has intensified competition among suppliers, driving down margins and leading to a commoditization of the market. Retailers often engage in aggressive pricing strategies to maintain volume, which squeezes profit margins further. At the same time, innovation in the residential segment—such as smart home lighting or tunable white lighting—is relatively slow to penetrate due to cost sensitivity and limited consumer awareness. Many households still view lighting as a low-priority upgrade and are reluctant to invest in advanced features unless bundled with other home automation services. Additionally, the shorter replacement cycle of LED bulbs due to their long lifespan (often 15–20 years) means that repeat purchases are low, restricting recurring revenue streams. As a result, companies targeting the residential segment must now shift toward value-added features like smart integration, color customization, and app-based control to maintain relevance. However, such innovations face adoption barriers unless consumers perceive clear utility and value. The challenge now lies in expanding consumer interest beyond basic LED functionality to justify future product development and sustain market momentum.

Key Market Trends

Growth in Demand for Human-Centric Lighting (HCL)

Human-centric lighting (HCL) is gaining traction in the UK as both scientific research and public awareness highlight the impact of lighting on health, mood, and productivity. HCL uses dynamic LED systems to mimic natural daylight cycles, adjusting color temperature and intensity throughout the day to align with the human circadian rhythm. This lighting approach is especially relevant in environments where people spend extended periods indoors, such as offices, hospitals, care homes, and educational institutions. For instance, cooler tones in the morning can stimulate alertness, while warmer tones in the evening help promote relaxation. As mental health and wellness become core concerns in workplace and healthcare design, HCL is seen as a tool to enhance well-being and reduce fatigue. In schools, studies have shown improvements in student focus and behavior under dynamic lighting conditions. Companies are increasingly incorporating HCL into their workplace wellness strategies as part of ESG initiatives. LED manufacturers are responding by developing tunable white luminaires and advanced control systems that enable HCL applications. Although HCL remains a premium segment, falling costs and growing health awareness are expected to drive broader adoption in coming years, making it a key trend in the UK’s lighting evolution.

Urban LED Retrofitting and Smart Street Lighting Initiatives

Across the UK, city councils and local governments are undertaking major retrofitting projects to replace outdated street lighting with energy-efficient LED systems. These initiatives are driven by the need to reduce energy costs, cut carbon emissions, and improve urban safety. Many retrofits are now incorporating smart lighting features, such as adaptive brightness based on traffic flow, motion sensors, and remote diagnostics. Cities like London, Manchester, and Glasgow have rolled out large-scale smart street lighting programs to achieve sustainability goals under the UK’s Clean Growth Strategy. Smart poles with integrated LED luminaires are also being used to support other urban technologies, such as public Wi-Fi, environmental sensors, and surveillance cameras. These projects often receive central or EU co-funding, which accelerates their implementation. The benefits extend beyond energy savings—reduced light pollution, improved public safety, and better asset management are key outcomes. As part of smart city development plans, many local authorities have made LED street lighting retrofits mandatory in new infrastructure projects. The UK’s push toward intelligent urban infrastructure makes municipal lighting a key growth driver and innovation hub for the LED industry.

Shift Toward Circular Economy and Sustainable Lighting Design

Sustainability is no longer a secondary concern—it is now at the forefront of product development and policy in the UK LED lighting market. There is a growing shift toward circular economy principles, where lighting products are designed for repairability, reusability, and recyclability. Manufacturers are reducing the use of non-recyclable materials, offering modular designs, and creating return schemes for end-of-life fixtures. LED lighting companies are also beginning to track product lifecycles and emissions using Environmental Product Declarations (EPDs) and Digital Product Passports, ensuring transparency in carbon footprints. The EU Ecodesign and WEEE (Waste Electrical and Electronic Equipment) directives influence UK regulations even post-Brexit, pushing the industry toward more sustainable practices. Commercial buyers increasingly demand fixtures that meet green building certifications like BREEAM or LEED, and some contracts require vendors to demonstrate carbon reduction in manufacturing and transport. These trends are encouraging innovation in material sourcing, logistics, and extended product warranties. Additionally, more public procurement tenders include circularity clauses, requiring suppliers to take back old lighting and repurpose components. As the UK strengthens its climate commitments, circular design is expected to become a central pillar of the lighting value chain.

Segmental Insights

Type Insights

LED Bulbs & Lamps segment dominated in the United Kingdom LED Lighting market in 2024 due to a combination of cost-effectiveness, ease of installation, energy savings, and widespread consumer adoption. These lighting products are the most accessible and practical for both residential and small commercial users, making them the default choice for lighting upgrades and replacements across the UK.

One of the primary reasons for this dominance is their high compatibility with existing fixtures. LED bulbs are designed to be direct replacements for traditional incandescent, halogen, and compact fluorescent bulbs. This plug-and-play feature allows homeowners and businesses to retrofit spaces without the need for complex rewiring or structural changes, unlike integrated LED luminaires. As a result, millions of older fixtures in homes, offices, and public buildings are being upgraded quickly and at low cost.

Moreover, regulatory actions have accelerated this transition. The UK government’s ban on halogen bulbs and the planned phase-out of fluorescent lamps have pushed consumers toward LED alternatives. These regulatory measures, combined with energy labeling schemes, have made LED bulbs the obvious energy-saving choice.

LED bulbs and lamps also offer significant cost and energy advantages. They use up to 90% less energy than incandescent bulbs and can last over 15,000 to 25,000 hours, compared to just 1,000 hours for traditional incandescent lamps. This translates into lower utility bills and reduced maintenance, both of which are highly attractive to price-sensitive users.

Retail availability also contributes to their popularity. LED bulbs are widely stocked in supermarkets, DIY stores, and e-commerce platforms, making them easily accessible to UK consumers. Their affordability, now comparable to older bulb types, further fuels mass-market appeal.

Application Insights

Outdoor Lighting segment dominated the United Kingdom LED Lighting market in 2024 due to widespread infrastructure upgrades driven by sustainability goals, energy efficiency mandates, and smart city initiatives. Local councils and municipalities have prioritized replacing traditional streetlights with LED systems to reduce energy consumption and maintenance costs. Smart LED streetlights with adaptive brightness, motion sensors, and remote monitoring are being widely adopted. Major retrofit projects across cities like London, Manchester, and Birmingham have accelerated this transition. Additionally, outdoor applications in public spaces, transportation hubs, and commercial exteriors further support this segment’s leading position in the market.

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Region Insights

Largest Region

England dominated the United Kingdom LED Lighting market in 2024 due to its large population base, higher concentration of urban infrastructure, and aggressive sustainability programs at both national and local levels. As the most populous and economically active region in the UK, England accounts for the majority of demand across residential, commercial, industrial, and public infrastructure sectors, making it the primary driver of LED lighting adoption.

Urban centers such as London, Manchester, Birmingham, Leeds, and Liverpool have led extensive LED retrofitting projects for streets, public buildings, and transport infrastructure. For instance, London’s borough councils have actively implemented smart LED streetlight upgrades, supporting both energy efficiency and data-driven urban management under smart city frameworks. Additionally, commercial real estate development is most prominent in England, where office buildings, shopping centers, and industrial parks increasingly demand LED solutions for cost and energy savings.

The residential market in England has also rapidly embraced LED lighting, supported by greater access to retail and e-commerce channels and growing public awareness of energy efficiency benefits. Utility companies and local governments offer rebate programs and awareness campaigns encouraging households to replace traditional bulbs with LEDs. England’s early adoption of building energy standards has further accelerated the transition to efficient lighting.

Moreover, England hosts the largest number of lighting manufacturers, distributors, and solution providers, ensuring strong supply chain availability and faster deployment of advanced lighting technologies. The region’s well-developed construction industry and investment in building modernization projects also contribute to sustained demand.

Emerging Region

Scotland was the emerging region in the United Kingdom LED Lighting market in the coming period due to its strong focus on sustainability, government-backed energy transition programs, and increasing adoption of smart infrastructure. While historically overshadowed by England in terms of volume, Scotland is gaining momentum as it intensifies efforts to modernize its public and private lighting systems.

One of the primary drivers is the Scottish Government’s commitment to net-zero emissions by 2045, which is five years ahead of the UK-wide target. This aggressive timeline has accelerated the rollout of energy-efficient solutions, including large-scale LED streetlight replacement projects across cities such as Glasgow, Edinburgh, and Aberdeen. Local councils are actively investing in intelligent outdoor lighting systems that reduce energy use, support public safety, and offer remote monitoring capabilities.

Recent Developments

• In January 2025, Applelec Group announced a strategic partnership with GENLED Brands, a global leader in premium LED lighting solutions with operations across three continents. This collaboration enhances Applelec’s product portfolio by incorporating Acolyte’s architectural lighting and AgiLight’s signage solutions. As a dual UK distributor, Applelec strengthens its commitment to delivering bespoke, high-quality lighting systems tailored to diverse project requirements, aligning with its strategy to meet evolving customer needs through innovation and global partnerships.
• In April 2025, Panasonic Industry Europe partnered with RED Horticulture, a leading innovator in smart greenhouse lighting. The collaboration integrates Panasonic’s Bluetooth wireless modules into RED’s advanced horticultural systems, enhancing energy efficiency and crop performance. By combining cutting-edge hardware and agronomic expertise, the partnership supports sustainable agriculture and optimized yields. This alliance reflects Panasonic’s growing role in enabling smart, resilient agricultural technologies through high-performance wireless solutions designed for challenging greenhouse environments.
• In July 2024, Signify launched Ecolink, a competitively priced over-the-counter LED lighting range developed in the UK for electrical professionals. Tailored to meet the demands of everyday installations, Ecolink offers reliable, energy-efficient luminaires with the trusted quality of the world’s largest lighting company. Backed by over 130 years of innovation, the brand addresses the UK market’s need for practical, value-driven solutions, reinforcing Signify’s commitment to delivering performance lighting for professional trade environments.
• In March 2025, Lumesca Group announced its official UK distribution partnership with Newell Technology Co., Ltd., introducing Newell’s range of batteries, chargers, power stations, LED lighting, and accessories to the UK photography and videography market. Known for dependable performance and competitive pricing, Newell’s solutions offer enhanced power efficiency and reliability. This partnership supports Lumesca’s objective to provide creative professionals with high-quality tools essential for dynamic production environments.

Key Market Players

• Philips Lighting UK        
• General Electric Company
• Bamford Lighting
• EGLO UK
• Liteplan Limited
• Dextra Lighting Ltd
• Signify Commercial UK Ltd
• FW Thorpe plc
• Thorn Lighting Ltd
• Crompton Lamps Limited     

Report Scope:

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

• United Kingdom LED Lighting Market, By Type:

o   LED Bulbs & Lamps

o   Batten Lights

o   Downlights

o   Others

• United Kingdom LED Lighting Market, By Application:

o   Outdoor Lighting

o   Indoor Lighting

• United Kingdom LED Lighting Market, By Installation Type:

o   New Installation

o   Retrofit Installation

• United Kingdom LED Lighting Market, By End Use:

o   Commercial

o   Residential

o   Others

• United Kingdom LED Lighting Market, By Region:

o   England

o   Scotland

o   Wales

o   Northern Ireland

Competitive Landscape

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

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