February 21, 2024
LED Rental Market

LED Rental Market is expected to be Flourished by Growing Demand for Special Events Lighting

The LED rental market provides innovative and energy-efficient lighting solutions for various indoor and outdoor applications. LED lights are rented for special events such as concerts, exhibitions, trade shows, and corporate events for decorative lighting, dance floors, stages, beams, and wash lighting. Other major applications include film & television shoots, architectural installations, advertising displays, and commercial productions. The global LED rental market offers temporary and flexible lighting solutions to enhance the visual experience and ambiance. LED lights consume less power compared to traditional lighting solutions and generate minimal heat, thereby lowering energy costs substantially for events.

The global LED rental Market is estimated to be valued at US$ 21.89 million in 2024 and is expected to exhibit a CAGR of 5.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
Growing Demand for Special Events Lighting: The increasing frequency of large-scale events such as outdoor concerts and exhibitions boosts the demand for specialty lighting rentals. Some key factors driving the growth of the special events industry include growing disposable incomes, rapid urbanization, and changing lifestyles. The flexible and affordable rental model offers various lighting options to event organizers and production companies to customize their lighting needs as per the theme and atmosphere of the event.

Economic Feasibility of LED Rental Solutions: Renting LED lights offers significant financial benefits compared to outright purchases for both commercial and individual clients. It eliminates upfront capital costs and provides variable payment options. The temporary rental model suits applications that require lighting solutions for short-term projects and events. Maintenance, repairing, and upgrading services are taken care of by the rental companies, further improving the economic feasibility for clients.

Segment Analysis
The global LED rental market is dominated by the corporate segment which holds more than 35% share. With increasing number of corporate events, product launches, exhibitions and conferences conducted by various private as well as public sector companies, the demand for LED walls, video walls, light boxes and other LED lighting equipment from this segment continues to rise. The corporate segment seeks rental services to create a unique ambience and enhanced customer experience during such events without incurring huge capital expenditure.

PEST Analysis
Political: Growth of LED rental market is positively impacted by various government initiatives and policies promoting adoption of energy efficient lighting solutions. Many nations offer subsidies and tax incentives for use of LED lights.
Economic: Strong GDP growth, rising disposable incomes and expansion of corporate sector in developing regions is driving greater spend on decorative and customized LED lighting solutions for corporate events, thereby benefitting market growth.
Social: Changing lifestyle and rising consumer awareness about environmentally sustainable products is increasing preference for LED lights over traditional lights. Further, social media is promoting various indoor and outdoor events requiring customized LED lighting.
Technological: Continuous advancement in LED technology such as higher lumen output, versatile designs, smartphone connectivity and lower power consumption is promoting wider use of rented LED lights among residential and commercial users.

Key Takeaways
The Global LED Rental Market Size is estimated to be valued at US$ 21.89 Mn in 2024 and is expected to exhibit a CAGR of 5.1% over the forecast period 2024 to 2031.

Regional analysis indicates North America is currently the largest as well as the fastest growing regional market. The US and Canada account for more than 30% share due to strong corporate, media & entertainment sectors demanding advanced LED lighting solutions for various temporary setups. Asia Pacific region is also emerging as a major LED rental market led by China, India and Japan. Growing middle class population, improving standards of living and expansion of domestic events industry is propelling demand.

Key players operating in the LED rental market are BASF S.E., Bayer Cropscience AG, FMC Corporation, DowDuPont, Monsanto Company, Nufarm, SinoHarvest Corporation, Syngenta A.G., Sumitomo Chemical, and United Phosphorus. Key players are focusing on expanding their product portfolio and rental fleet to capitalize on the lucrative opportunities across Asia Pacific and MEA regions.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it