LED Manufacturers Should Emphasize Emerging Markets

Comparing with the weak performance in mature markets, LED lighting demands in emerging markets heat up, bringing new energy and opportunity to global LED market, said CPbay comprehensive information.

 

In fact, since 2012 when the entire LED industry suffered serious oversupply and continuously price cutting, emerging markets including Russia, India, Vietnam, Thailand, Africa and other regions began to drive the LED market, especially LED lighting field.

 

After joining WTO, Russia declined import tariffs, conductive to the expansion of LED products. CPbay comprehensive information said Russia will share 1-5% of the global market in the long term with annual compound growth rate expecting to reach 28-48%, driving by energy saving and optimizing electronics requirements. It is estimated Russia will see 300 million units of LED lighting by 2014.

 

Backed by strong activity on the policy reforms front, the LED Industry in India is seek to amount to around US $ 500 million by 2015; LED street light and LED solar light especially see significant surge in coming years. With Indian enlarging investment in energy efficient lighting systems, the price cutting of LED products as well as the continuous improvement in technology addressing new applications, India’s LED lighting industry will growth at 41.5% until 2015.

 

According to the analysis of the Kaitai Research Center, LED lighting accounted for 12% of the total lighting market of Thailand in 2012. It is expected the proportion to increase to 45% -50% by 2015. Just as all countries, government support plays an important in LED lighting promotion. The Thailand government issued Provincial Electricity Authority (PEA), preparing to replace one million street lights nationwide with LED bulbs. Other applications include LED automotive lighting, residential, hospital and commercial lighting.

 

Due to the accelerated urbanization, urban infrastructure, Vietnam lighting market has entered a golden age. In the next 10 years, Vietnam will invest over 60 billion U.S. dollars in the construction of roads, airports, ports and other public transport network; the corresponding utilization of LED lamps is expected to exceed 50% after 2014.

 

Despite the lagging economic environment, the rapid development and raised government support as well as international help enables Africa of board adoption space in LED lighting products. Africa has 15% of the world's population, and 10 million of 600 million is not available to lighting, generating huge market potential for global LED industry with the LED lighting products hitting sweet spot. In the future, LED industry in Africa will gain more and more traction.

 

Given the economic level, Chinese LED suppliers will be more competitive in emerging markets for the advantage of low cost. The opportunity is set to benefit ameliorating the oversupply situation in China.