Consumers in Africa are embracing LED lighting technology, leading to a projected expansion of the continent’s smart lighting market to approximately $5.49 billion by 2028.
SPECIAL REPORT | BIRD AGENCY | The demand for LED lighting in Africa is expected to experience substantial growth over the next five years, driven by government initiatives that encourage the use of energy-efficient and environmentally-friendly lighting solutions.
LEDs, or light-emitting diodes, utilize a microchip to emit light when an electric current passes through, differing from the traditional wire filament approach. LEDs are significantly more efficient, boasting around 90% greater energy efficiency compared to older incandescent bulbs.
According to the United Nations’ recent Africa Environment Outlook for Business forecast, the LED market in Africa is projected to expand from $3.71 billion in 2023 to approximately $5.49 billion by 2028. This translates to an annual growth rate slightly exceeding 8% within the forecasted period, creating attractive business opportunities within the lighting sector.
Governments across Africa are actively endorsing the adoption and sales of LED lighting through a range of policies and initiatives. A notable example is a proposed amendment from African representatives to the Minamata Convention on Mercury in May 2021. This global treaty seeks to safeguard human health and the environment from mercury’s adverse effects. The proposed amendment aims to curtail specific exemptions for mercury use in lighting, facilitating wider acceptance and energy-efficient benefits of LED technology.
The report highlights that despite these positive developments, limited access to electricity remains a significant impediment to a more substantial demand for LED lighting. To address this challenge, governmental bodies and private organizations are exploring avenues to expand electricity access through off-grid power alternatives and by enhancing conventional and renewable energy generation projects, extending their benefits to a larger population.
East Africa, as analyzed by IMARC Group, is witnessing a flourishing LED lighting landscape, propelled by government-endorsed reductions in LED product prices and an increase in consumer awareness. Kenya stands out as a leader in the region, achieving a 75% electricity access rate, which encompasses both grid and off-grid solutions – the highest in East Africa.
The commercial sector predominantly drives LED adoption, particularly in areas such as street lighting. Retail stores serve as the principal distribution channels across East Africa.
In South Africa, as per a report by Bonafide Research, the LED lighting market is anticipated to increase in value by approximately $1.24 billion by 2028. The market’s growth will be fueled by decreased LED prices, energy savings, and a growing acceptance of LED lighting across sectors like industrial buildings.
Nigeria is projected to achieve significant cost savings of around $2.47 billion by phasing out fluorescent lighting by 2025. Farouk Salim, Director General of the Standards Organisation of Nigeria (SON), emphasized the crucial role of lighting in promoting energy efficiency, sustainability, and its direct link to mitigating the impact of climate change.