Nov 11, 2016: LEDs market in Indonesia is expected to grow at a CAGR of 21.5% during the forecast period 2016-2022 to reach $1.85 billion by 2022. The LEDs market in Indonesia has been analyzed based on major application areas – lighting, displays & backlights, mobile devices, signs & boards and others. The application area of lighting has further been divided into sub-application areas of indoor lighting and outdoor lighting along with bifurcation into the products of bulbs, street lights, and spotlights. The LED lighting segment is expected to grow fastest among application areas for LEDs in Indonesian market.
Indonesia is one of the countries with rich resources but lesser industrialization. The increasing industrialization of Indonesia is demanding more and more power in already power deficit economy with low electrification rate. Light Emitting Diodes (LEDs) based lighting, which needs 30-90% less electricity as compared to other lighting sources, is being promoted as a product to reduce the power requirement. The economic growth and urbanization are expected to further increase the pressure on existing infrastructure, demanding higher power requirements. Thus, growing power deficit is in turn expected to fuel the market growth for LED based products in the Indonesian market.
According to this research, Indonesia’s LEDs market is expected to grow at a CAGR of 21.5% during the forecast period to reach $1.85 billion by 2022. The lighting segment is expected to contribute the largest growth towards the LED market and is expected to be driven by the government initiatives, decreasing LED prices, and investments from multinational players in the Indonesian market.
Growing trade relation between Indonesia and China in LED market is expected to be helpful for domestic producers in LEDs procurement. Many multinational companies have invested in Indonesia and government is expected to support domestic production during the forecast period. Some of the prominent players in Indonesian LED market are LeKise International, Mouser Electronics, Solarens Ledindo, PT Philips Indonesia, and PT Osram Indonesia.