The LED lighting industry has grown over the past decade and only continues to spur at rapid rate hereon, owing to its numerous benefits over the older technology. Declining LED prices coupled with favorable government initiatives shall drive LED Lighting market in India until 2020. Increasing adoption of LED lighting is being witnessed across commercial and residential sectors, government projects, upcoming smart building projects, etc.
Key factors that are expected to boost the market include declining LED prices coupled with favorable government initiatives to provide LED lights at subsidized cost and LED installation projects for streetlights. Moreover, rising consumer awareness about cost-effectiveness and eco-friendliness of LED lights would continue to drive volume sales from the residential and well as commercial sectors.
While the demand for a smart and connected, lifestyle is a driving force behind the LED lighting industry, the industry faces a number of challenges.
In terms of challenges, since the LED lights range from a much lower price, local manufacturers receive low margins which in turn brings intense competition from Chinese Players, as their products are available at cheaper price points though of substantial quality. Essentially the levy of GST on LED lights and raw materials range nearly between 18 to 28 per cent which causes heavy revenue leakage. Lack of technical standardized norms for the lighting industry is also another factor. Due to the adoption of the perfectionist policy by most countries, local manufacturers are facing a major setback in their process and thereby affecting the LED lighting industry.
There’s a lot of innovation that is still happening and is untapped. So, the LED lighting industry is going to constantly keep evolving, which makes it difficult for me to give you a list of it but to name a few notable innovations; here are some. LEDs have become notably mainstream, though it has taken time but it’s only going to go a notch higher every time. The next thing we foresee in LED’s would be controlled lighting which has already set in, but still is not as mainstream which is connected and smart way of living. IOT shall be next where several devices shall be linked to one as lighting has become like data. Technologies such as Li-Fi, which is basically like wifi but with light and indoor positioning which tracks people’s positions to use luminaries are on the basis of visible light communication. So there’s more to come, and let’s hope the market is ready for it.
Currently, the demand for LED lighting in India is largely driven by Metros, because of stronger awareness. However, we foresee in future the demand is also expected to grow from Tier II and Tier III Markets especially on Street lighting/Industrial Lighting categories. Further expansion of Government initiatives will open up new markets for the LED lighting industry.
Smart Cities/National LED Programme and several other government initiatives have but LED Market in spotlight and also have led to a stronger growth. Not only have the prices reduced drastically, but also better acceptance among the audience. With growing awareness and there is a massive growth opportunity for the next 5-10 years. The demand will be mostly dominated around outdoor lighting like streets and roads.
The sector will grow in full swing, due to the expansion in infrastructure development such as roads etc, adding to which with socio economic growth and growing preference of people towards energy efficient and innovative lighting solutions, the next steps are well defined. Consumers too have become very environment friendly, which has further built the push. The journey is very exciting, though has its own share of challenges. Lastly, Government’s programs such as ‘Power for all’ etc will keep the momentum going.
—By Mahesh Bellad, Director Online Instruments (Orange LED Plus)...