To help personalise content, tailor your experience and help us improve our services, Bisinfotech.com uses cookies.
By navigating our site, you agree to allow us to use cookies, in accordance with our Privacy Policy.

Strong Decline in LED Prices to Drive APAC LED Market Says Frost & Sullivan

With growing LED adoption and increasing use of smart solutions, the lighting industry is going through an enormous transformation. This is driving a paradigm shift to the entire lighting industry dynamics, directly impacting the competitive landscape, distribution channels, product offerings, and business models.

Strong Decline in LED

Strong decline in LED prices along with favorable government mandates are expected to drive the LED market in the Asia Pacific from US$28.54 billion in 2018 towards US$38.72 billion by 2023.

From quitting the traditional lamp business to pulling out from certain geographies, stakeholders in the lighting industry are fighting hard to combat the pace at which the market has been transforming.

“The advent of the Internet of Things (IoT) and Lighting-as-a-Service (LaaS) have created a rising need for partnerships, which will allow manufacturers to provide a complete IoT lighting solution portfolio,” said Viswesh Vancheeshwar, Industry Analyst, Energy & Environment, Asia Pacific at Frost & Sullivan.

“As lighting moves from a product-based market to a service- and data-based market, stakeholders will partner or collaborate with control manufacturers to offer a more personalized lighting experience,” he noted.

Frost & Sullivan’s recent analysis, Transformation of the Lighting Market in Asia-Pacific, 2019, studies the impact of social and demographic trends, industry Mega Trends, disruptive technologies, and new business models, across the lighting market value chain. While the market continues to evolve, it also presents several significant growth opportunities for companies that are open to tapping this transformation.

The applications covered include architectural, hospitality, industrial, office and education, outdoor, residential, retail, and healthcare.

The report claims that while residential applications have dominated revenue shares so far, industrial and hospitality applications will grow the fastest during the forecast period.

Traditional OEM business models based on channel dominance and replacement sales will eventually give way to a prosumer-based lighting market. Consequently, lighting companies will transition to a consultative business model, driving the evolution towards more circular, service-based business models.

“While lighting systems may be customized to cater to various customer segments, different strategies and approaches will be required for the high and low ends of a single consumer segment itself.  The key to success lies in matching the right strategy to a certain market segment”, he added.

For additional growth opportunities of the LED Market, manufacturers are likely to:

  • Shift from traditional fixtures to integrated luminaires, as LED-integrated fixtures are forecast to outpace the growth of regular LED fixtures.
  • Provide Light Fidelity (LiFi)-enabled lights so conventional lighting companies can reinvent themselves.
  • Reduce packaging weight and volume and increase recycled content.
  • Embrace 3D printing, as it enables new levels of customization, and helps in designing luminaries that use the light beam and energy in the most optimum way for the target applications.
  • Use Augmented/Virtual Reality (AR/VR) to give customers a thorough visual experience.
  • Design human-centric lighting to tap immediate opportunities from the commercial and high-end residential building segments.

Further information: Click Here

Tags
Show More

Jyoti Gazmer

A Mass Comm. graduate believes strongly in the power of words. A book lover who dreams to own a library some day. An introvert but will become your closest friend if you share mutual feelings about COFFEE. I prefer having more puppies over humans.

Related Articles