Asia Pacific APAC LED Lighting Market Size, Share, Trends Analysis Report 2020-2027
The Asia Pacific LED lighting market is anticipated to grow at a cagr of 15.5% between 2017 to 2027, the market was valued at USD 24.5 billion in 2019. The APAC LED lighting industry is one of the largest exporters of all types of LED lightings and components worldwide. Asian countries such as China, Taiwan, Japan, and India I have highly advanced LED lighting manufacturing facilities and skilled labor available economic cost, therefore most of the Western LED lighting companies to outsource their parts manufacturing to Asia.
The coronavirus that emerged from the Chinese city of Wuhan, spread at significant speed across the world resulting in the closure of most of the major countries for a prolonged period of 2 to 3 months. This lockdown deserted in substantial losses in almost every business sector including lighting industries. As most of the manufacturing facilities in China were shut down, the Global supply chain of LED lightings, parts, and components was significantly affected as the transportation was halted for a prolonged period as per the directive of governments.
As most of the construction projects were paused during this period, LED lighting significantly decreased resulting in overstock of LED lamps and underutilization of the manufacturing facilities. The Government of various Asian countries is announcing economical packages for small and medium industries in order to prevent economic crisis and slow down.
On the basis of LED lighting product type, the market has been segmented into lamps and luminaires. The lamp segment accounted for greater than 55% market share in 2019, as the construction of the residential building has increased substantially in developing countries such as India, Indonesia, and China. The Chinese government has launched many Megaprojects including industrial, commercial, and government construction such as roads. They opposed the China LED lighting market growth is expected to reach a cagr of 17.2 % over the forecast period.
Indoor and outdoor lighting is the key segment based on the LED lighting application. The APAC indoor LED lighting market accounted for the largest Market share in 2019 owing to high demand from the commercial and industrial segments. China is leading the construction of large manufacturing facilities, therefore supporting the demand for indoor lighting segments for industrial usage.
Supportive policies and program by the Indian government for adoption of LED lights in the region is expected to boost the Indian LED lighting market growth. For instance, in 2015, the Indian government has launched the Domestic Efficient Lighting Program (DELP) in order to promote the adoption of LED lamps. The government is targeting to replace more than 77 crores of traditional incandescent and CFL lamps by 2020, which is expected to reduce the load of 20000 MW per annum equivalent to INR 400 Bn in electricity.
Residential, commercial, and industrial are the key end-use segment for LED lights. The residential segment accounted for more than 47 % of the market share in 2020, significant growth in the construction sector combined with increasing per capita income in the Asian countries which leads to an increase in demand for residential Constructions is expected to boost the Asia Pacific LED lighting market growth.
China is the leading LED lighting manufacturer in the world, the Chinese LED lighting market accounted for greater than 67% market share in 2019. The availability of technologically advanced manufacturing facilities, skilled labor, and worldwide demand for Chinese manufactured lighting products is expected to boost China’s LED lighting market growth. In Asian countries such as Taiwan, South Korea, and Japan LED lighting market is growing at a moderate growth rate.
Growing geopolitical tensions between China and countries including the USA, India, Japan, and Taiwan has affected the export of Chinese manufactured LED lighting market significantly. The Western regions are considering India as a prominent substitute for China, and therefore the investment in the lighting sector in India has increased in recent few years.
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