The next wave of LED lighting: smarter, circular and more efficient

As the world enters the Age of Electricity, lighting remains one of the most visible - and widespread - parts of our energy use.

The IEA estimates that lighting in buildings and outdoor applications accounts for the majority of overall lighting electricity demand. In 2024, around 8% of global electricity demand - or about 2 200 terawatt hours (TWh) - was attributed to lighting in buildings and outdoor applications, excluding industry and agriculture. These figures reflect the latest available data and define the scope of the analysis presented in this commentary. Estimates from industry and experts1 place global electricity consumption for lighting, including industrial lighting, between 2 500 and 3 500 TWh in recent years.

Over the past two decades, lighting has seen major efficiency gains thanks to the rapid uptake of the light-emitting diode (LED). A typical halogen lamp produces about 20 lumens per watt2 (lm/W), while a compact fluorescent lamp (CFL) reaches around 50 lm/W. Meanwhile, LEDs sold today average close to 100 lm/W - with some premium and professional LEDs exceeding 200 lm/W. Supported by strong policies and innovation, LEDs have become one of the biggest energy efficiency success stories of recent years, with long lifetimes and falling costs helping them dominate global markets. The efficiency gains have contributed to improved energy security, reduced energy bills and avoided higher emissions.

Yet the global LED transformation is not over, and a second wave of deployment is now taking shape. Uptake remains uneven across regions, while demand for brighter spaces and illuminated infrastructure continues to rise around the world. Moreover, the first generation of already-installed LEDs is approaching end-of-life, creating an opportunity for the next phase of LED adoption - one that is focused on higher performance, longer lifetimes and smarter systems.