19 November 2011

LED lamp and luminaire shipments to exceed 500 million units in Asia-Pacific by 2021

Sales of LED lighting systems will increase rapidly over the next 10 years, accelerating sharply after 2015, as unit shipments (including lamps and luminaires) will grow more than 700% from 66 million in 2011 to 542 million in 2021, according to the new report ‘Energy Efficient Lighting in Asia Pacific’ from market research firm Pike Research. Over the same period, sales of virtually all other forms of lighting - including incandescent, T8/T5, and compact fluorescent lamps - will decline steadily.

“High upfront costs and a lack of customer awareness remain issues for the Asia Pacific LED market,” says senior analyst Andy Bae. “But the news media has been touting recent price declines, and lighting manufacturers in the region are continuously expanding their product lineups to meet demand,” he adds.

While energy-efficient products are an expensive form of lighting for many customers in the Asia Pacific region, the higher costs are increasingly justified by the higher efficacy and performance compared with traditional lighting products. Indeed, some countries in the region have been early pioneers in developing energy-efficient lighting systems. As a result, demand for LED products is growing among customers in developed countries such as Japan and Korea. Moreover, a number of regional and national government programs are in place to promote LED lighting.

Japan revealed its plans to lead the LED lighting industry through its 21st Century Light Project more than a decade ago, and launched several LED subsidy and support programs not long after. For its part, Taiwan established a Next Generation Light Source Technology Development & Supply Strategy, which called for a greater reliance on LED lighting and material production and reduced focus on the nation’s traditional business of semiconductors.

Meanwhile, the commitment to LED lighting by China is enormous. For instance, the city of Shenzhen plans to install LEDs in more than 90% of public lighting applications, street lighting, and commercial spaces in the next decade.

These initiatives will serve as a key driver of the market in the coming decade, believes Pike Research. The LED is now viewed as an affordable and efficient technology with long-term benefits, the firm adds.

See related items:

LEDs to hit 70% lighting market penetration in Japan

Asia driving near-term adoption of LED lighting

Tags: LED lighting LEDs

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