April 11, 2016: According to a report, the global market for LED industrial lighting will grow significantly and will post an impressive CAGR of over nearly 22% by 2020. Factors such as the rising demand for power-efficient lighting systems across industries, increasing concern over the depletion of non-renewable sources of power, and the declining price of LED lights will aid in the growth of this market.
Furthermore, advantages like the high-energy efficiency of LED lights and its ease of control in terms of brightness and intensity will also spur the adoption of LED lights in the industrial sector.
The augmented need for energy-efficient LED bulbs is a significant factor that will impel the adoption of LED lights in the industrial sector. The high-energy costs will compel both governments and consumers to reduce their energy consumption and make use of power-saving lighting solutions. Since LEDs are efficient in terms of lighting and power consumption, they can limit power consumption more effectively than conventional incandescent bulbs. The ability of these LEDs to bolster the potential power savings will result in its augmented adoption during the predicted period.
The replacement market segment accounted for approximately 82% of the total market share during 2015 and is estimated to continue its market dominance owing to the high penetration of lighting technologies like LFL and HID. Advantages like the LED’s low total cost of ownership (TCO) and the ability of LED lights to provide better illumination compared to other lighting technologies will lead to this market segment’s strong growth over the next four years.
In terms of revenue, APAC was the largest market for LED industrial lighting systems in 2015, accounting for 43% of the market. In APAC, China is the major revenue-contributing country due to the presence of a large number of LED lighting manufacturing units and industries. Since 2010, subsidies were being provided by the Chinese government for MOCVD. Many players entered the LED market in China and purchased MOCVD tools to manufacture LED dies.
India is also expected to contribute to the global LED industrial lighting market during the forecast period due to the government’s make in India initiative, which encourages manufacturers across the world to build industrial units in India.