12 December 2011

Indian LED lighting market to grow at 45.5% till 2015

The LED lighting market in India was $73.3m in 2010 and will continue to rise at a compound annual growth rate (CAGR) of 45.53% till 2015, according to Frost & Sullivan Research. This market is expected to grow considerably in the future, and growth is attributed to short-term drivers, namely street-light applications and the railway sector. Over 60% of the total demand in 2012 will be attributed to these two applications.

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. LED lighting is considered the key emerging segment in the Indian lighting market, driven by the move towards energy-efficient lighting solutions.

Frost & Sullivan says it is confident that LED lighting will 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 trade organization Semiconductor Equipment and Materials International (SEMI).

“The excitement around LED Lighting applications is helping it to move towards newer user segments, thus expanding this market considerably,” says Niju V, deputy director, Automation & Electronics Practice, Frost & Sullivan, South Asia & Middle East. “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,” they add. “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, notes Frost & Sullivan. 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. Also, the absence of uniform standards for different applications is 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, says Frost & Sullivan. 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 market analyst firm adds. The increasing awareness of LED lighting benefits is also influencing its slow and steady penetration.

Tags: LED lighting market

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