Market Trends of Asia-Pacific Lighting Control Industry
Growing Modernization and Infrastructural Development
- Lighting control helps building owners save heavy usage of lighting in their buildings. It can control and optimize lighting employed in the workplace, eliminating the need to look after the overuse of electricity manually.
- The increasing infrastructure development, such as the construction of commercial malls, airports, schools, warehouses, highways, and other buildings owing to rapid urbanization, is expected to fuel the market’s growth. In FY23, India’s residential property market witnessed the value of home sales reaching an all-time high of INR 3,47,433 crore (USD 42 billion), marking a robust 48% year-on-year increase.
- The Government of India launched the National Infrastructure Pipeline (NIP) incorporated with other initiatives such as the production-linked incentives (PLI) scheme and ‘Make in India’ to augment the growth of the infrastructure sector in the country. According to IBEF, India plans to spend USD 1.4 trillion on the infrastructure sector through the ‘National Infrastructure Pipeline’ till 2027.
- Moreover, the construction industry in China has also witnessed massive growth due to sustainable construction policies and a shift toward a service-led economy over the past few years. The growing investments in large-scale infrastructure projects in China are expected to boost the market’s growth.
- According to MLIT (Japan), in 2023, approximately 819.6 thousand housing starts were initiated in Japan, and approximately 224.3 thousand new privately owned housing units were started in the country in 2023. Similarly, in FY 2022, over 10,240 office building construction projects began in Japan.
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China to Hold Significant Market Share
- China is witnessing various large-scale infrastructure projects where lighting control systems are necessary to modernize infrastructure. Lighting controls help the facility managers manage networked lighting controls in different ways throughout the buildings by creating a central control to manage all of the lighting and HVAC systems in the building.
- The demand for lighting control is rising in China as the adoption of smart cities has increased. The country has become a global leader in smart city initiatives. It combines embedded sensors, smart lighting, metering devices, cameras, and other modern technologies with artificial intelligence (AI) and big data processing analysis to help manage its cities and public spaces.
- China witnessed increased infrastructure investment in Q1 2023 to propel economic growth and launched more than 10,000 projects across the country. The government has invested approximately CNY 14.77 billion (USD 2.03 billion) in various projects to improve living infrastructure and local transport and for the development of relevant industries, further supporting the market’s growth.
- The growing urbanization has increased China's construction work sector. As per the National Bureau of Statistics of China, in 2023, the construction industry accounted for around 6.8% of China's gross domestic product. A significant share of the Chinese economy relies on real estate and infrastructure construction. Especially in times of economic downturn, policymakers fall back on infrastructure investments to boost economic output. The increase in the construction of commercial buildings is projected to create lucrative growth opportunities for the market studied.
- China's 14th Five-Year Plan emphasizes new infrastructure projects in water systems, energy, transportation, and new urbanization. As per the International Trade Administration, the total investment in new infrastructure during the 14th Five-Year Plan period (2021-2025) will reach about CNY 27 trillion (USD 4.2 trillion). The plan focuses on nine points for green building development and energy efficiency. It also calls for renovating more than 350 million square meters of buildings and constructing more than 50 million square meters of zero-emission houses.
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