Industrial Lighting: Value Reconstruction Amid Challenges
Amidst a price surge and industry downturn, LED industrial lighting giants are transforming challenges into opportunities through innovation and strategic shifts.
In the first week of September 2025, the global LED industrial lighting sector witnessed a significant event: over ten leading companies, including Signify, Schneider, Osram, and MLS Co., announced price increases ranging from 3% to 20%, with some implementing their second hike within the year.
This move signals a critical turning point for an industry grappling with prolonged decline but also striving to reinvent itself.
Industry Dynamics: Beyond Price Adjustments
The price surge reflects deeper industry dynamics. LED industrial lighting is transitioning from a cost-driven model to one emphasizing value creation and technological innovation.
The industry faces a stark reality: China’s LED industrial lighting scale decreased by 7.7% year-on-year in the first half of 2025, marking the fourth consecutive year of negative growth.
This downturn is attributed to weak global demand, overcapacity, and price deflation. Yet, within this challenge lies opportunity. The industry is responding to national policies like China’s Carbon Peak Implementation Plan, mandating that 80% of all lighting must be LED-efficient by 2030.
Companies are shifting from merely selling products to providing integrated solutions. Smart lighting systems that integrate intelligent scheduling, energy management, and data collection are becoming the new standard, offering comprehensive life-cycle light services for cities and industries.
Strategic Consolidation: Reshaping the Competitive Landscape
While large-scale M&A news wasn’t the headline this week, the industry’s consolidation is evident in the struggle for survival among smaller players.
The first five months of 2025 saw a 40% year-on-year increase in bankruptcy cases among lighting enterprises. This silent restructuring is creating a more concentrated market where technological capability and financial resilience determine survival.
The competitive landscape is being reshaped as leading companies strengthen their “value moats” through patent布局, brand building, and service ecosystems. Companies like MU Group are leveraging their OEM/ODM expertise and competitive pricing to gain market share.
Navigating the Downturn: Innovation as the Path Forward
The industry’s downturn pressures all players but hits small and medium enterprises hardest. Data shows that 64% of lighting companies saw revenue decline in H1 2025, with 66% experiencing lower gross margins.
The average capacity utilization rate dropped to 54%, well below the 75% warning line for manufacturing overcapacity.
However, the industry is finding paths forward through innovation:
· Technological Breakthroughs: Companies are developing industrial-grade LEDs that offer 100,000 hours of life and can withstand harsh environments like extreme temperatures and vibrations.
· Customization and Smart Integration: The trend toward customized, modular solutions continues, with IoT-enabled adaptive lighting that responds to occupancy and workflow needs.
· Sustainability Focus: Eco-friendly materials, solar integration, and energy-efficient designs are becoming standard expectations rather than premium options.
Emergence and Transformation
This week’s price hikes represent more than just adjusting to cost pressures—they signify the LED industrial lighting industry’s critical transition from price competition to value competition.
As policies worldwide push for greener solutions and businesses prioritize efficiency, companies that can deliver technologically advanced, integrated lighting solutions are finding opportunities even in a challenging market.
The future of LED industrial lighting will be defined not by mere illumination but by intelligent, sustainable visual solutions that enhance productivity, reduce energy consumption, and create smarter working environments. Those who transform pressure into innovation momentum will ultimately redefine the industry’s value coordinates.
