July 18, 2016: Over the past few years, the lighting market in India has been growing fast, and the LED lighting sector has gained the maximum momentum. Industry experts have estimated that the Indian LED lighting market will expand by 47.1 in 2016 to $1.14 billion. Further, they have also projected that the market will further expand to $1.715 billion by 2020.
Potential export hub
With the continued LED push from the Indian government, it is expected that the nation will become the export hub for lighting products going to East Asia in the near future. Simultaneously, chief global lighting vendors like Osram and Toshiba have also started production bases in the nation for supplying the worldwide market.
Indian LED lighting market to expand by 47.1 in 2016
In addition, leading LED lighting players such as Philips Lighting have set up production facilities and R&D centers in India, particularly due to strong prospects of good profit margins. In the meanwhile, domestic players usually import products from China and other nations. The exceptions are local vendors that are huge enough to have in-house manufacturing facilities like Surya and Havells.
An Industry analyst pointed out that since global brands are more mature with regards to product development and technology, they tend to control a bigger of the LED lighting market in India as compared to the local companies. However, the Indian government is dedicated in supporting the domestic lighting market and has thus, allocated domestic manufacturers 50% of the tendered quantity of LED lighting products for a range of schemes. This will aid the local brands to boost their market shares in the nation in the near future.
Gaps in domestic LED market chain
In spite of the swift growth and government support, India’s LED lighting market is at present at the early phase of its development and hence, there are gaps in the domestic LED market chain. While there are numerous domestic brands engaging in the manufacturing, design and assembly of a number of LED products, LED chips and packages are completely imported from overseas. Some of them even purchase from China finished products for semi-finished products for assembly or domestic sales.
Such dependence on foreign products and components will begin to reduce as the government encourages local manufacturing. Nonetheless, the shortage of domestic suppliers in the midstream and upstream of the LED market chain is still a great challenge at present.