LED lighting is developing rapidly, and the overseas market is promising.
Published Time:
2021-08-03
With the rapid rise of the Internet of Things industry, the implementation of global energy conservation and environmental protection concepts, and the support of national industry policies,
Against the backdrop of the rapid rise of the Internet of Things industry, the implementation of global energy conservation and environmental protection concepts, and the support of national industry policies,
the penetration rate of LED lighting products continues to increase, and smart lighting is becoming a key focus of future industrial development.
As the LED industry matures, the domestic market is gradually becoming saturated. More and more Chinese LED companies are turning their attention to the vast overseas market, showing a trend of collective overseas expansion. It is obvious that major lighting brands will engage in fierce and long-lasting competition to improve product coverage and market share. So, which regions will be the potential markets not to be missed?
1. Europe: Rising Energy Awareness
From September 1, 2018, the halogen lamp ban came into full effect in EU countries. The gradual elimination of traditional lighting products will accelerate the development of LED lighting penetration rate. According to a report from the Prospective Industry Research Institute, the European LED lighting market continues to grow, reaching US\$14.53 billion in 2018, with a year-on-year growth rate of 8.7%, and a penetration rate exceeding 50%. Among them, spotlights, filament lamps, and decorative lamps used for commercial lighting show particularly significant growth momentum.
2. United States: Rapid Growth of Indoor Lighting Products
CSA Research data shows that in 2018, China exported US\$4.065 billion worth of LED products to the United States, accounting for 27.22% of China's LED export market, an increase of 8.31% compared to 2017. Excluding 27.71% of unspecified product information, the top 5 exported product categories to the United States were bulbs, tube lights, decorative lights, floodlights, and light strips, mainly indoor lighting products.
3. Thailand: High Price Sensitivity
Southeast Asia is an important market for LED lighting. With rapid economic growth in recent years, increased investment in infrastructure construction in various countries, and demographic dividends, lighting demand continues to increase. According to data from Youxuan Research Institute, Thailand holds an important position in the Southeast Asian lighting market, accounting for approximately 12% of the overall lighting market, with a market size of close to US\$800 million, and a projected compound annual growth rate of nearly 30% between 2015 and 2020. Currently, there are few LED manufacturing companies in Thailand, and LED lighting products mainly rely on foreign imports, accounting for about 80% of market demand. Due to the establishment of the China-ASEAN Free Trade Area, LED lighting products imported from China can enjoy zero tariffs, and coupled with the characteristics of high quality and low price of Chinese manufacturing, Chinese products have a very high market share in Thailand.
4. Middle East: Infrastructure Construction Drives Lighting Demand
With the rapid economic development and population growth in the Gulf region, investment in infrastructure in Middle Eastern countries continues to increase. At the same time, the rising energy conservation and emission reduction trend in recent years has also promoted the booming development of the electricity, lighting, and new energy markets. Therefore, the Middle Eastern lighting market is increasingly attracting attention from Chinese LED companies, and countries such as Saudi Arabia, Iran, and Turkey are important export markets for Chinese LED lighting products in the Middle East.
5. Africa: Significant Potential in Basic and Municipal Lighting
Due to tight electricity supply, African governments are vigorously promoting the replacement of incandescent lamps with LED lamps and introducing LED lighting projects to drive the growth of the lighting product market. The \"Light Up Africa\" project initiated by the World Bank and international financial institutions is also an undeniable driving force. There are few indigenous LED lighting companies in Africa, and their R\&D and production of LED lighting products cannot compete with Chinese companies.
Those who fail to plan comprehensively cannot succeed locally; those who fail to plan for the long term cannot succeed in the short term. As LED lighting products are key energy-saving lighting products promoted by countries around the world, market penetration will continue to rise. In the process of expanding, LED companies need to continuously improve their comprehensive competitiveness, adhere to technological innovation, strengthen brand building, diversify marketing channels, adopt an international brand strategy, and achieve a foothold in the international market through long-term competition.
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