Hazardous location LED lighting is specially designed lighting fixtures suitable for use in hazardous locations where flammable gases or vapors, combustible dusts or fibers may be present. LED lights for hazardous locations provide superior safety in hazardous areas due to their low heat and shock/impact-resistant properties. The global hazardous location LED lighting market is gaining traction owing to its advantages over traditional lighting such as long life, energy efficiency, vibration and impact resistance. Used widely in oil refineries, gas processing plants,chemical industries and mining facilities, hazardous location LED lights help ensure process safety in hazardous areas. The global hazardous location LED lighting market is estimated to be valued at US$ 527.02 Mn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing Oil and Gas Industry Operations (as referred in the heading): Rising energy demand globally is fueling growth in the oil and gas industry. According to International Energy Agency, natural gas will account for nearly 50% of total global energy demand growth from 2018 to 2040. This is expected to increase exploration and production activities in the oil and gas sector. With increasing operations in refineries, offshore rigs and LNG terminals, the need for safe lighting solutions in hazardous areas is also growing. Hazardous location LED lights being more efficient and durable are ideal replacements for traditional hazardous lighting systems in oil and gas facilities.
Growing Adoption Due to Performance and Cost Advantages: LED hazardous location lights have longer lifespan than traditional fluorescent and HID lamps used in hazardous areas. They also consume up to 90% less energy, resulting in significant cost savings over the lifetime. LED lights do not emit ultraviolet or infrared radiation and generate little heat, making them intrinsically safe for use in explosive gas atmospheres. Their compact size allows easy installation even in confined hazardous spaces. Owing to these advantages, LED lighting is increasingly supplanting traditional lighting options across industries involving hazardous processes.
Segment Analysis
The hazardous location LED lighting market is dominated by the oil & gas sub-segment due to increased usage of LED lights in oil rigs, refineries and gas extraction sites. LED lights are durable, energy efficient and have longer lifespan making them suitable for hazardous environments in oil & gas industry where maintenance is difficult.
PEST Analysis
Political: Regulations around workplace safety and emission norms promote use of energy efficient LED lights. Strict safety standards boost demand.
Economic: Growing industrialization and infrastructure development increase investments in oil, mining and utility sectors driving lights usage. Lower operational costs appeal industries.
Social: Rising health and environmental awareness increase preference for pollution free LED lights over traditional halogen lamps.
Technological: Continuous LED technology advancement leads to higher luminosity, lower failure rates and versatile designs suiting diverse hazardous conditions.
Key Takeaways
The Global Hazardous Location LED Lighting Market Size is expected to witness high growth during the forecast period of 2023 to 2030.
Regional analysis: The hazardous location LED lighting market in North America region accounted for around 35% share in 2024 led by US and Canada. Rapid industrialization and presence of major oil producers have heightened the need for workplace safety compliance boosting lights adoption.
Key players operating in the hazardous location LED lighting market are Clasado Biosciences, VW-Ingredients, Shandong Longli Biotechnology Co., Ltd, Prenexus Health., Ingredion, Tate & Lyle, Roquette Frères, Cosucra, International Flavors & Fragrances Inc., Nestlé S.A., Renew Life, Mimi’s Rock Corp, Procter & Gamble. Key players such as Clasado Biosciences, Ingredion, Renew Life are focusing on developing innovative and energy efficient LED lighting solutions for hazardous areas.