Feb 20, 2017: LED markets across the globe have reached a saturation point, and revenues have seen a slump with slow growth rate of LED markets.
While US President Trump’s trade policy and China’s export to the US have impacted the LED markets, some markets are like the Southeast Asia and Middle East are emerging and will open up business opportunities where LED vendors would have to compete hard.
Emerging LED markets
With drop in LED prices, Thailand consumers have switch to LED lights. Thai government has also encouraged the use of LED lights woth their energy saving programs. Thailand’s Kasikorn Research Center has estimated that demand for LED lights in Thailand is likely to increase significantlyin the coming years. In 2016, total market value of Thailand’s LED tube market is expected to rise from 33.5% to 38.1%–from THB 3.73 billion (RMB 696 million) to 4.98 billion to THB 5.15 billion (RMB 930 to 962 million) year on year.
LED lighting market in Vietnam has grown significantly due to higher average income. In 2015, Vietnam’s LED lighting market had reached US$ 271 million, and is now estimated to increase by 28% to US$ 348 million in 2016. Vietnam has also a potential market for LED lighting as it consumes around 200 million traditional light bulbs annually, which can also be converted into LEDs. With demands for traditional bulbs decreasing, penetration rate of LED bulbs increased over the past few years. It is estimated that in 2016, the penetration rate of LED products have increased by 35%.
The International Energy Agency (IEA) is trying to apply India’s LED bulb policy in Indonesia to lower costs of LED bulbs. IEA is partnering with EESL in India to take the program global. EESL in India has been purchasing LED light bulbs in bulk to reduce prices, and disturbing the bulbs under the government’s Unnat Jyoti by Affordable LEDs for All (UJALA) scheme.
ResearchandMarkets has estimated that from 2016 to 2022, LED market in Turkey will rise at a 15.6% compound annual growth rate, and by 2022, market size is is likely to reach US$ 344 million. In Turkey, LED signs and billboards markets have the greatest growth potential.
Turkey’s LED market grew rapidly after the country implemented intellectual property licensing on LED products, and adopted LED lights as alternative sources to cut down on energy consumption. Turkey government has also encouraged the adoption of LED products, leading to a significant growth. EU’s ban on halogen bulbs has also provided opportunities for Turkish LED makers.
Several infrastructure projects in the Middle East have led to increased demand for LED lights. Iran is the main exporter of LED lighting products in this region.