
The International Energy Agency’s (IEA) latest commentary argues that lighting is entering a second major transition after the global shift to LEDs. The first wave was defined by rapid efficiency gains, falling costs, and long lifetimes that helped LEDs dominate global markets and curb electricity demand, energy bills, and emissions. Now, the IEA says the next wave will be shaped by smarter systems, higher-performing components, and circular design principles that extend product life and reduce waste.
That shift matters because lighting remains a significant electricity load. The IEA notes that buildings and outdoor lighting still account for a meaningful share of global power use, while demand for illuminated spaces and infrastructure continues to rise. Even so, LEDs have helped keep lighting electricity consumption broadly stable over the past decade despite growth in floor area and activity, underscoring how much impact efficiency policy and technology adoption can have at scale. The agency also points out that the first generation of installed LEDs is now approaching end of life, creating a replacement cycle that could accelerate the move to newer, more efficient products.
A key theme in the commentary is that the next round of gains will come from the full system, not just the light source. The IEA highlights controls, sensors, building-management integration, predictive maintenance, and other connected features as tools that can cut wasted energy, especially in commercial spaces. At the same time, the agency emphasizes that products need to be easier to repair, upgrade, disassemble, and recycle if lighting is to become truly circular. Modular luminaires, replaceable components, and better material recovery are presented as practical ways to reduce raw-material demand while also lengthening service life.
The article also stresses that policy remains central. Strong standards, bulk procurement, and retrofit programs have already driven LED adoption in leading markets, and similar measures will be needed to close remaining regional gaps, globally. For the industry, the message is clear: the LED era is no longer just about lumens per watt. The next competitive frontier is smarter operation, longer product life, and designs that fit a circular economy from the outset.
The full IEA article can be found here.








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