May 22, 2017: Although the global LED lighting market did not show exponential growth from 2015-16, LEDs still occupied over 50% of the lighting sales. The lighting industry is still unsure about the changes that will take place in the coming years. However, due to greater consumer awareness towards the benefits of LEDs, penetration of LED lighting products reached 60% to 70% in 2016 in the regional markets.
LEDs to facilitate connected lighting
LEDinside has analysed the market and predicts certain strategies that will be adopted in the coming years. In recent past, LEDs have facilitated the analog-to-digital transformation in the lighting industry. In the coming future, due to its small size, LEDs will make a wide range of luminaire design possible. LEDinside predicts that in the next 10 years, LEDs will facilitate connected lighting in a big way.
Retail sale of LED lights will continue
Over the past years, retailers like IKEA, The Home Depot, etc; e-commerce giants like Amazon and Alibaba; and government projects like India’s Energy Efficiency Services Limited (EESL) have given a major boost to sales of LED products. LEDinside predicts that this new business model will continue to boost sale of LED lights.
Young LED firms will shine
In the new era of low-cost LEDs, new and young LED companies like Cree, Acuity Brans, Eaton, MLS, Panasonic, OPPLE Lighting, etc, will do well in this competitive industry.
Although lighting companies like Philips Lighting, Osram, GE (Current), LEDVANCE, etc, have transitioned to LED lighting, its revenue still fell short of expectations. In future, these companies have to focus more on developing innovative LED products to generate more revenue.
Governments need to offer subsidies or incentives to encourage local LED lighting players to ramp up production.
The emerging LED lighting companies need to come with sales channel advantage, and advanced technologies, to expand their business in LED lighting products.
LEDinside concludes that companies who have production cost advantage, sales channel advantage, and advance technology, will flourish in LED lighting business. And companies who will focus on R&D, innovation, marketing, and channel operation will lead the way in lighting development on the global stage.