Market Trends of asia pacific indoor led lighting Industry
The market is driven by increasing population, increasing per capita income, and government subsidy to promote the use of LED lights
- Asia-Pacific is home to 59.7% of the world’s population, which is around 4.7 billion people, and includes the world’s most populous countries, such as China and India, and 46.3 % of the population is urban (2.14 billion people in 2019). The region's overall fertility rate is close to 2.1 births per woman. Family size has decreased to 1.7 children per woman in East Asia while maintaining a high of 2.5 children per woman in South Asia. Further, two out of every five people in the region currently live in urban areas. This ratio will increase significantly in the coming as millions move from the countryside to towns and cities in search of employment and better opportunities. Thus, the increase in the number of households in urban areas is expected to create more LED penetration for the need for illumination in the region.
- This region includes several developing nations, and despite the pandemic, disposable income is growing in developing countries. China's per capita income reached USD 12,732.5 in December 2022, compared to USD 12,615.7 in December 2021. India’s per capita income reached USD 2301.4 in March 2022, compared to USD 1971.6 in March 2021. Japan's per capita income reached USD 33,911.2 in December 2022, compared to USD 39,916.1 in December 2021. Such instances result in the rising spending power of individuals and affording more money for new residential spaces. For households, in 2012, the Chinese government offered a subsidy of CNY 2.2 billion for the use of energy-conserving light bulbs and LEDs. The Japanese government introduced a consumer rebate program known as the "Eco-Point" program in April 2010. Users may use their Eco-Points to purchase LED lamps at a 2 to 1 Eco-point ratio, which is further expected to surge the demand for LED lighting.
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Initiatives related to infrastructure development and increasing use of energy-efficient lighting to drive the growth of LED lights
- The industrial sector in the Asia-Pacific had planned to have the biggest energy consumption in 2021, followed by the residential and commercial sectors. Additionally, Asia-Pacific is known for its ongoing and future infrastructure initiatives, notably smart city projects, which could generate demand for building operations. The industrial and commercial sector is also expanding quickly. Tokyo and India will collaborate on global infrastructure development projects in 2022. In countries like Nepal, where both countries are already working on projects, joint planning, design, and implementation of infrastructure projects might help New Delhi and Tokyo maximize their impact. The demand for LED in the area is anticipated to rise as a result of these developments.
- Electricity demand in the commercial sector tends to be around 11-13 hours. Electricity use in the industrial sector tends not to fluctuate through the day or year. Electricity demand in the residential sector tends to be highest in the evenings, when lights are turned on, and the average lighting time varies for about 6 to 8 hours. Additionally, Cochin Smart Mission Limited (CSML) is preparing an INR 40 crore project to install LED lighting in Kochi, India, to guarantee the security of vehicles and pedestrians in 2022. These programs fuel the expansion of the LED sector.
- Countries in Asia-Pacific have expedited energy savings through the use of LEDs. For instance, the Australian Government decided in January 2018 to introduce minimum LED bulb standards in Australia and New Zealand that comply with EU requirements and phase out inefficient halogen lamps as a way to improve lighting energy efficiency regulation further. The effort will reduce the nation's electricity use and encourage the usage of LED lighting.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increase in construction and sales of residential houses to drive the growth of the LED market
- Government initiatives to promote energy-efficient LED lights in the region to increase LED light sales
- Increasing indoor farming, construction of vertical farming farms, and investment in agritech startups to drive the growth of LED lighting market
- Increasing investment in commercial buildings, buying luxury cars, and adoption of EV to increase the growth of the LED market
- LED light upgrade project, government offering subsidies, and tax benefits to raise LED localization and reduction of GHG emission to drive the growth of LED lighting market
