by The LED rental market comprises rental of light-emitting diode (LED) based lighting products and solutions for various temporary and event-based lighting applications. LED lights are energy efficient and consume less power as compared to traditional lighting technologies. They come with benefits such as longevity, durability, color consistency, and versatility. LED lights can withstand vibrations and offer high light output even in extreme weather conditions. They play a crucial role in enhancing the experience of live concerts, sports events, film shoots, and other similar events by illuminating stages, backdrops, and surrounding areas.
The global LED Rental Market is estimated to be valued at US$ 19 Bn in 2023 and is expected to exhibit a CAGR of 4.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
One of the key trends in the LED rental market is the growing adoption of smart LED lighting control systems. These systems leverage IoT and cloud solutions to allow centralized monitoring and control of LED lights. They enable remote configuration, scheduling, dimming and switching of lights according to predefined programs. This enhances energy savings and operational efficiency. Another notable trend is the increasing popularity of energy-efficient LED moving heads and interactive LED displays for live concerts and shows. Their programmable features and ability to dazzle audiences are spurring their adoption among event organizers. Manufacturers are also focusing on developing waterproof, dustproof and vandal-proof LED lights to expand their usage in outdoor applications such as theme parks, sports complexes, and construction sites. Such product innovations are expected to open new growth avenues for market players over the forecast period.
Porter’s Analysis
Threat of new entrants: Low capital requirements and ready availability of technologically advanced LED lights has reduced the threat of new entrants. However, established players have strong relationships with event organizers and reputation of quality service.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitute rental services and possibility of renting equipment from multiple rental companies. However, specialized large scale events require trusted suppliers.
Bargaining power of suppliers: Suppliers of LED lights have low bargaining power as there are numerous suppliers in the market and rental companies can source equipment from multiple suppliers.
Threat of new substitutes: Threat of substitute is moderate as other rental options like traditional lighting are still used. However, the adoption of LED is increasing due to benefits like energy efficiency, durability and versatility.
Competitive rivalry: Rental market is highly fragmented with presence of numerous regional and global players. Intense competition keeps rental rates low and forces companies to offer high quality services.
Key Takeaways
The global LED Rental Market Size is expected to witness high growth. North America dominates the LED rental market currently due to strong economy and high adoption of LED lighting solutions for events. Early technological advancements and presence of major rental companies in the US and Canada support market growth.
Europe follows North America in terms of market share led by countries like Germany, UK and France. Large number of entertainment, music and sports events drive demand for rented LED lights. The presence of Liebherr and other regional players cater to varying needs.
Asia Pacific is expected to be the fastest-growing market during the forecast period led by China, Japan and India. Increasing disposable income, rapid urbanization, and growth in industrial and construction activities are the major factors for market growth. Key local players like Shanghai Zhenhua and Sany Group have a strong foothold in China and other Asian countries.
Key players operating in the LED rental market are Liebherr-International AG, Shanghai Zhenhua Heavy Industries Co., Ltd., Wison Group, Konecranes, Kalmar, Kranunion GmbH, Sany Group Co., Ltd., Noell Crane Systems (China) Limited, Anupam Industries Limited, and MAC PORT Macchine Operatrici Portuali s.r.l. The LED rental market is consolidated with top players occupying major market share. Companies are focusing on expansions, partnerships, and offering specialized lighting packages to different industries to gain competitive advantage.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
