Global LED lighting market to reach US $25.7 billion in 2015
Nov 4, 2014 —- The global LED lighting market will reach $25.7 billion dollars and its market penetration will increase to 31% in 2015 as the overall lighting market grows to $82.1 billion, according to a new report by LEDinside, a division of the Taiwan-based market intelligence firm TrendForce.
Europe is the largest LED lighting market. It comprises 23% of the global LED lighting market despite its high electricity prices and lack of large-scale subsidies for LED lighting users, said Joanne Wu, an assistant manager at LEDinside, adding that Europe’s demand for LED lighting for commercial and architectural lighting applications is increasing.
China comprises 21% of the overall LED lighting market. As the manufacturing base of most LED lighting producers, China boasts a complete LED supply chain and many cost advantages. Traditional lighting manufacturers, lighting OEMs, emerging LED lighting manufacturers, and LED packaging manufacturers all are expanding their LED lighting businesses. This year, developing viable channel distribution is a top priority for vendors in China. Looking ahead to 2015, the lighting market in China should continue to grow on the back of stable demand for lighting. However, since the market is highly competitive and there is little variation in product quality among different manufacturers, vendors will compete mainly on price, making the probability of a price war high, Wu said. At the same time, without proper distribution channels, manufacturers will be forced to exit the market, she added.
The United States holds 19% of the overall LED lighting market. Currently, there is a push in the industry to obtain certification from the US Environmental Protection Agency Energy Star and the DesignLights Consortium (DLC), a US-based non-profit organization. Firms which receive certification from these organizations are eligible for subsidies from local utilities providers. Additionally, LED lighting product quality is improving, helping commercial LED lighting in the US grow. The fastest-growing segment is light tubes.
Japan has just 9% of the global LED lighting market. Indeed, the Japanese LED lighting market is relatively mature. LED commercial lighting is already common in Japan’s schools, hospitals and retail chain stores. Still, the outdoor and industrial LED lighting segments have considerable potential to expand.
Emerging markets, including Asia Pacific, the Middle East, and Latin America, comprise 28% of the global LED lighting market. Looking ahead to 2015, growth prospects in these markets are especially promising because of rapid population growth, favorable government policies and an abundance of private-sector LED lighting projects.
Note: This article is cited from LEDInside.