Indian LED lighting market expected to grow at a CAGR of 45.53% until 2015, notes Frost & Sullivan
Date Announced: 13 Dec 2011
Mumbai, Maharashtra, India - Energy-efficient lighting technologies and the need to develop alternate technologies is gaining importance in India due to issues of energy deficiency, electrification of remote rural regions, and energy sustainability. Light Emitting Diode (LED) Lighting is considered the key emerging segment in the Indian lighting market, driven by the move towards energy-efficient lighting solutions.
According to Frost & Sullivan Research, the LED lighting market in India was USD 73.3 million in 2010 and will continue growing at a CAGR 45.53 percent till 2015. This market is expected to grow considerably in the future and the growth is attributed to short-term drivers namely, street light applications and the railway sector. Over 60 percent of the total demand in 2012 will be attributed to these two applications.
Frost & Sullivan is confident that LED lighting is expected to grow significantly in the future, replacing traditional lighting technologies, but its penetration largely depends on standardization, Government support, awareness, and affordability. Keeping in perspective the challenges faced by the LED lighting suppliers and end users, Frost & Sullivan’s Automation & Electronics Practice recently hosted its 2nd Annual Executive Congress on LED Lighting in association with Semiconductor Equipment and Materials International (SEMI).
According to Niju V, Deputy Director, Automation & Electronics Practice, Frost & Sullivan, South Asia & Middle East, “The excitement around LED Lighting applications is helping it to move towards newer user segments, thus expanding this market considerably. The major challenges of absence of standards and lack of awareness are being mitigated by the efforts of the Bureau of Energy Efficiency (BEE) and the LED industry, thereby facilitating its usage in hitherto low-usage application areas. Phenomenal growth of the market is expected to make viable commercial volumes of local manufacturing that shall aid in driving down the prices of the products significantly. As energy conservation initiatives gain more prominence, this industry is all set to acquire a star status in the next couple of years.”
The LED lighting market also has its share of challenges. LED lighting installations require more complicated designs, spanning optical, thermal, and electronics domains. LED lamps continue to be quite expensive compared to conventional lamps; they rely on imports, as current economies of scale prevent indigenous manufacturing. Absence of uniform standards for different applications is also restraining LED adoption and is paving the way for sub-standard cheaper imports to flood the market.
The highly competitive factors affecting the Indian Lighting Market are price advantage and brand image. LEDs are garnering significant interest and playing a vital role in LEED certified buildings in India. The BEE is working with lighting associations to define standards, testing protocols, and certifying parameters for different lighting applications. Star rating labels are being made mandatory for luminaires/lamps for indoor commercial and outdoor lighting applications. Government backing for green technologies and thereby its adoption in high-value applications like street lighting is helping LED Lighting make inroads in the Indian lighting industry. The increasing awareness of LED lighting benefits is also influencing its slow and steady penetration.
Frost & Sullivan’s study provides an in-depth coverage of the LED lighting market in India by product and application segments. It discusses the key trends across applications and also analyzes the market opportunities in India for LED lighting to provide strategic recommendations based on findings from the electronics manufacturing industry.
The Gold Partner supporting the Event was Sujana, Silver Partners were Moser Baer and UL, and the Associate Partner was Kwality Photonics. The Media Partners supporting the Event were Electronics Bazaar, Electronics For You, Electronics Maker, and LED Professional.
If you are interested in more information on the Indian LED Lighting Market, please send an e-mail to Caroline Lewis/Nimisha Iyer, Corporate Communications, at email@example.comfirstname.lastname@example.org, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation, and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from 40 offices across six continents. To join our Growth Partnership, please visit http://www.frost.com
Caroline Lewis, Corporate Communications – South Asia
Frost & Sullivan
Web Site: www.frost.com