The LED lighting industry has grown over the past decade and only continues to spur at rapid rate hereon, owing to its numerous benefits over the older technology. Declining LED prices coupled with favourable government initiatives shall drive LED Lighting market in India until 2020. Increasing adoption of LED lighting is being witnessed across commercial and residential sectors, government projects, upcoming smart building projects, etc.
Key factors that are expected to boost the market include declining LED prices coupled with favourable government initiatives to provide LED lights at subsidised cost and LED installation projects for streetlights. Moreover, rising consumer awareness about costeffectiveness and eco-friendliness of LED lights would continue to drive volume sales from the residential and well as commercial sectors.
There’s a lot of innovation that is still happening and is untapped. So, the LED lighting industry is going to constantly keep evolving. To name a few notable innovations, here are some:
• LEDs have become notably mainstream, though it has taken time but it’s only going to go a notch higher every time.
• LEDs would be controlled lighting which has already set in, but still is not as mainstream which is connected and smart way of living.
• IoT shall be next where several devices shall be linked to one as lighting has become like data. Technologies such as Li-Fi which track people’s positions to use luminaries.
In terms of challenges, since the LED lights range from a much lower price, local manufacturers receive low margins which in turn brings intense competition from Chinese Players, as their products are available at cheaper price points though of substantial quality. Essentially the levy of GST on LED lights and raw materials range nearly between 18 to 28 per cent which causes heavy revenue leakage. Lack of technical standardised norms for the lighting industry is also another factor. Due to the adoption of the proper policy by most countries, local manufacturers are facing a major setback in their process and thereby affecting the LED lighting industry.
FUTURE LOOKS BRIGHT
Currently, the demand for LED lighting in India is largely driven by Metros, because of stronger awareness. However, in future the demand is also expected to grow from Tier 2 and Tier 3 markets especially on street lighting and industrial lighting categories. Further, expansion of government initiatives will open up new markets for the LED lighting industry.
Smart Cities or National LED Programme and several other government initiatives have put LED market in spotlight and also have led to a stronger growth. Not only have the prices reduced drastically, but also better acceptance among the audience. With growing awareness, there is a massive growth opportunity for the next 5-10 years. The demand will be mostly dominated around outdoor lighting like streets and roads.
The sector is expected to grow in full swing, due to the expansion in infrastructure development such as roads etc, adding to which with socioeconomic growth and growing preference of people towards energy efficient and innovative lighting solutions, the next steps are well defined. Consumers too have become very environment friendly, which has further built the push. The journey is very exciting, though has its own share of challenges. Lastly, the government’s programs such as ‘Power for all’ etc will keep the momentum going.