Market Trends of china led lighting Industry
A steady birth rate is complementing the positive growth of homeowners, small and medium-sized businesses, and electric vehicles
- In 2022, China had a total population of 1,411.75 million. In China, 6.77 children were born for every 1,000 adults in 2022. With the steady growth of the youth, around 141.05 million sq. m of commercial real estate was being built each year in China in 2021. The incubation of an additional 3,000 small giant enterprises in the year was supported by the Ministry of Industry and Information Technology in March 2022. By 2025, China wants to have 1,000 single-product champion enterprises and 10,000 tiny giant businesses. The demand to use more LEDs will be driven by the growth in businesses and enterprises.
- In China's lower socioeconomic strata, as of 2019, more than 60% of residents were homeowners. In comparison to citizens of big cities, the ownership rate was substantially greater. In lower-tier cities and towns, 41% of homeowners did not have a mortgage on their home. In 2019, the average household size in rural and urban areas was 48.9 sq. m and 39.8 sq. m, respectively. The increased use of LEDs may be influenced by the rise in home purchases.
- Owing to the growing population, China had 297 million cars as of September 2021. Motor vehicle registrations totaled 8.83 million in the third quarter of 2021. In 2021, more than 85% of all electric vehicle sales took place in China. In 2021, China sold 3.3 million more electric vehicles than the rest of the world (3.0 million). With 7.8 million vehicles, China's electric car fleet continued to be the largest in the world in 2021. The requirement for additional LEDs will be facilitated by the rise in the LED lighting market in China due to the rise in the number of EVs.
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The rising per capita income complements the growth of households
- The average household size in China registered 3.03 persons in 2017. By 2021, it reduced to 2.7, indicating an increase in private households/housing ownerships. After 1998, China went from being a nation dominated by public renters to one with the highest homeownership rates, owing to the privatization of existing public housing and the vast provision of private housing, primarily in the ownership sector. By 2020, more than 90% of households in China owned their homes (87% in urban areas and 96% in rural areas). In contrast to many affluent countries, more than 20% of Chinese households own several properties. Thus, the increase in the number of properties is expected to create more LED penetration for the need for illumination in the country.
- In China, disposable income is growing, resulting in the rising spending power of individuals who spend more money on new residential spaces. 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 was USD 2,301.4 as of Mar 2022, which is lower than China's.
- In China, the floor area of residential buildings per capita for rural areas was reported at 48.900 sq. m in 2019, an increase from the previous year of 47.300 sq. m. In urban areas, it was 38.600 sq. m in 2020, a decrease from 39.800 sq. m in 2019 due to an increase in the investment in small-size apartments/studio apartments. This is propelling the growth of LED lighting in the country. For instance, people in China invested in low-cost apartments in small Chinese cities.
- In 2012, households in China were offered a program of CNY 2.2 billion (USD 0.31 billion) for the use of energy-conserving light bulbs and LEDs. Such instances are expected to increase the demand for LED lighting in the country.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The growth of automotive LED light innovation by major automotive manufacturers in the Asia-Pacific region will boost the overall LED market
- Easy finances by automotive companies and government incentives are promoting the sales of EVs
- China's energy conservation initiatives could propel the LED light market growth
- China's energy conservation initiatives could propel the LED lighting market in the country
- National Development and Reform Commission partners with Ministry of Finance in China to promote LEDs in the country
- Ambient lighting conditions with LEDs would increase the partnership between manufacturers and indoor grow light producers
- Rising GDP per capita is complementing the growth in households, commercial estate, and the adoption of EVs in China's countryside
- EV manufacturers and consumers benefit from the Chinese EV policy, which is expected to boost LED lights in EVs
- The Chinese LED market will be boosted by the increased government support for local LED chip producers
- Smart traffic management systems will be installed to enable smooth interactions among vehicles and traffic management systems
- Rising sport events and government efforts to refurbish the country's sports stadium would lead to an increase in LED lighting
