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Asia-Pacific (APAC) LED Lighting Market Overview
The Asia-Pacific (APAC) LED lighting market is estimated to value $27.5 billion in 2018, and is expected to advance at a CAGR of 13.0%, during the forecast period. Various government initiatives for promoting energy efficiency and energy conservation, rising number of smart cities in the region, and greater life span of LED lights are the major factors contributing to the growth of the LED lighting market in the APAC region.
On the basis of product type, Asia-Pacific LED lighting market has been classified into lamps and luminaires. Among these, luminaires category is estimated to hold the largest share in the market in 2018, due to growing demand for LED lighting fixtures from construction of new residential houses, commercial buildings in the region. Additionally, based on installation type, Asia-Pacific LED lighting market is segmented into new installation and retrofit. Among these, new installation is estimated to hold largest of share in 2018. This is due to increasing government initiatives towards the installation of LED lights in the region primarily in India and China.
Based on application, indoor lighting category is estimated to hold dominating share in Asia-Pacific LED lighting market in 2018. This is due to increasing construction of residential buildings in India, and China. For instance, in March 2018, the construction of 321,567 affordable houses were sanctioned under Pradhan Mantri Awas Yojana (PMAY), an initiative launched by the government in 2015.
Based on country, China is estimated to hold the largest share in Asia-Pacific LED lighting market in 2018. This is attributed to the growing demand for energy saving and eco-friendly lighting products in application area such as roads, railways and buildings. For instance, in February 2019, the government announced that around $120 billion would be invested in railway construction to improve the rail network in the country.
APAC LED Lighting Market Dynamics
The key trend observed in Asia-Pacific LED lighting market is the growing popularity of smart LED lighting owing to their higher energy efficiency and the ability to control lights from anywhere at any time by using smartphones and tablets. In addition, automatic off/on, adaptive lighting, and motion activation technology would increase the cost savings for the households and businesses by reducing the power consumptions over traditional lights. Moreover, users can change the color of the lights as per their choice which can improve the indoor environment.
Several government initiatives toward energy efficiency in the region contributing immensely to the growth of the Asia-Pacific LED lighting market. In India, several government projects are on the line, to promote energy efficiency. For instance, in 2015, Indian government launched Unnat Jyoti by Affordable LEDs for All (UJALA) to promote energy efficiency in the country. Further, in 2015, the Indian government launched Street Light National Programme (SLNP) to promote energy efficiency in the country. SLNP aimed to replace 35 million conventional lights with LED lights. In addition, Chinese government is also promoting the adoption of energy efficient LED street light.
Moreover, in 2016, Australian government and Institute of Public Works Engineering Australasia (IPWEA) together launched a strategic Roadmap for Street Lighting and Smart Controls Programme (SLSC) to promote LED lights and smart controls to increase the energy efficiency. The overall cost of the project was around $1.1 billion, with an estimated energy saving of around $180 million per year. Thus, these initiatives are expected to reduce energy consumptions and in turn would provide healthy growth to Asia-Pacific LED lighting market.
A major opportunity for the growth of players operating in the Asia-Pacific LED lighting market lies in upcoming sports events in the region. Good quality illumination is essential for sports events like cricket, football, and hockey. Floodlights ensure good visibility enabling both spectators and players to follow the progress of a game. In addition to the visibility, outdoor lights also help to enhance the landscape of a country.
Sports events such as Olympic Games in 2020, ICC Cricket World Cup in 2023, Winter Olympics in 2022, and Asian Games in 2022 are scheduled to take place in APAC region, which would increase the demand for outdoor lighting in the region. As, LED lights are more durable, long lasting, and energy efficient than other lights, the demand for LED lights would increase during the forecast period. Hence, upcoming sports events in APAC would increase the demand for LED lighting in this region.
Value Chain Analysis
Asia-Pacific LED Lighting Market Competitive Landscape
Asia-Pacific LED lighting market is highly fragmented due to the presence of large number of global and regional market players. As the market is highly fragmented, the competition in the market is high. Signify N.V., Osram Light AG, Cree Inc., Zumtobel Group AG are the leading players in the market. Companies like Signify N.V. is strategically focusing on introducing new LED lighting products in the market. For instance, in 2017, the company introduced TrueForced Led and T5 LED tubes.
Key players in the Asia-Pacific LED lighting market include Koito Manufacturing Co. Ltd., Stanley Electric Co. Ltd., Osram Licht AG, Samsung Electronics Co. Ltd., Cree Inc., Signify N.V., LG Electronics Inc., Panasonic Corporation, Zumtobel Group AG, and Seoul Semiconductor Co. Ltd.