Asia-Pacific Outdoor Lighting Market Overview
The Asia-Pacific (APAC) outdoor lighting market is estimated to value $5.6 billion in 2018 and is forecasted to witness a CAGR of 11.1% during 2019–2024. Declining prices of light emitting diodes (LEDs), development of smart cities, and increasing government initiatives toward energy conservation are the key factors driving the market growth.
Based on lighting type, the market is classified into high intensity discharge (HID) lamps, LED lights, fluorescent lights, and plasma lamps . Among these, LED lights category is estimated to hold the largest revenue share in 2018; wherein during the historical period, China contributed the largest revenue share in the Asia-Pacific outdoor lighting market. This can be attributed to the increasing penetration of LEDs as a light source in outdoor lighting applications such as street lighting, parking lots, and stadiums. The demand for LED lights is increasing, due to the fact that LED enables effective use of light intensity controls and increases energy saving potential.
Based on component, the Asia-Pacific outdoor lighting market is bifurcated into fixture and control. Out of these, the fixture category is estimated to hold larger revenue share in 2018. This is attributed to the mass installation and legacy acceptance as outdoor lighting technology to generate artificial light through the use of various lighting sources such as LEDs, fluorescent lights, and others. However, the market for control category is expected to register faster CAGR during the forecast period. This can be attributed to rapid development and advancements in lighting system controls, particularly in countries such as China, Japan, and India.
On the basis of application, the Asia-Pacific outdoor lighting market is categorized into street lighting, highways, parking lots, stadiums, tunnel lights, and others; wherein others category includes gardens, parks, business parks, and agriculture. The highways category is estimated to hold the largest revenue share in 2018, owing to increasing highway projects, mainly in countries such as India, China, and Japan. On the other hand, development of smart cities and installation of smart street lights, across the APAC region, are projected to drive the demand for street lighting application in the coming years.
Asia-Pacific Outdoor Lighting Market Dynamics
Solar power has emerged as one of the reliable sources for powering street lights. It is suitable for remote areas where transmission of electricity through traditional ways is not feasible. Additionally, in developing countries such as China and India, with advancements in solar power technology, components of solar power system including luminaires and inverters are experiencing a huge price reduction, which results in higher adoption. Moreover, subsidies and other incentives provided by governments to end users and solar component manufacturers, in order to increase the use of solar power in countries such as China and India.
Rising number of passenger vehicles is one of the major factors for traffic congestion in the APAC region, which is fueled by the growing urbanization and rising disposable income. To reduce traffic jams, governments in several countries, predominantly China and India are investing in road infrastructure development. Therefore, this is one of the major growth drivers for the development of new highways and streets, which in turn, boost the demand for outdoor lighting systems.
Additionally, increasing adoption of LED lights is supporting the growth of the Asia-Pacific outdoor lighting market. This is due to the fact that LED lights consume low energy and are economical for businesses in the long term, unlike other lighting technologies. In addition, LED emergency lights have longer life span and are less fragile and much brighter than other types of lights. Furthermore, declining prices of LED lamps led to rise in demand for these lights. As a result, adoption of LED lights in outdoor lighting is increasing and is supporting the growth of the market in the APAC region.
Rising number of smart city projects in the APAC region is posing an opportunity for the Asia-Pacific outdoor lighting market. For instance, in 2015, the Government of India launched Smart City Mission to develop 100 cities with all modern facilities across the country, and is still currently in process. Further, China started piloting national smart city development in 2012 to build smart cities with modern technology. From 2016 to 2020, the Chinese government aimed to nurture 100 new smart cities to lead its urban planning and development. As a result, to enhance the urban landscape and increase energy efficiency, the APAC region to post positive demand for smart outdoor lighting systems during the forecast period.
Asia-Pacific Outdoor Lighting Market Competitive Landscape
The Asia-Pacific outdoor lighting market is highly competitive and fragmented, with the strong presence of few major players such as, Signify N.V., Osram Licht AG, Cree Inc., and Zumtobel Group AG. The major companies are focusing more on research and development in order to accelerate rolling out of new products to boost their respective market shares.
Some of the key players operating in the Asia-Pacific outdoor lighting market include Cree Inc., Zumtobel Group AG, Osram Licht AG, Eaton Corporation plc, Syska LED Lights Pvt. Ltd., Virtual Extension, Dialight plc, General Electric Company, Signify N.V., and Hubbell Incorporated.