Global LED lighting market to reach US $25.7 billion in 201502-12-2014
The global LED lights market will reach $25.7 billion dollars and its market penetration will increase to 31% in 2015 as the total lighting market grows to $82.1 billion.
Europe is the largest LED lights market. It accounts for 23% of the global LED lights market despite its high electricity prices and lack of large-scale subsidies for LED lights users, , also, Europes demand for LED lighting for commercial and architectural lighting applications is increasing.
China takes up 21% of the overall LED lights market. As the manufacturing base of most LED lights producers, China boasts a complete LED supply chain and many cost advantages. Traditional lighting manufacturers, lighting OEMs, emerging LED lights manufacturers, and LED packaging manufacturers all are expanding their LED lights businesses. This year, developing viable channel distribution is a top priority for vendors in China. Looking ahead to 2015, the lighting market in China should continue to grow on the back of stable demand for LED lights. However, since the market is highly competitive and there is some variation in product quality among different manufacturers, vendors will compete mainly on price, making the probability of a price war high. At the same time, without proper distribution channels, manufacturers will be forced to exit the market.
The United States holds 19% of the overall LED lights market. Currently, there is a push in the industry to obtain certification from the US Environmental Protection Agency Energy Star and the DesignLights Consortium (DLC), a US-based non-profit organization. Firms which receive certification from these organizations are eligible for subsidies from local utilities providers. Besides, LED light quality is improving, helping commercial LED lighting in the US grow. The fastest-growing segment is light tubes.
Japan has just 9% of the global LED lighting market. Indeed, the Japanese LED lighting market is relatively mature. LED commercial lighting is already common in Japans schools, hospitals and retail chain stores. Still, the outdoor and industrial LED lighting segments have considerable potential to expand.
Emerging markets, including Asia Pacific, the Middle East, and Latin America, occupy 28% of the global LED lights market. Looking ahead to 2015, growth prospects in these markets are especially promising because of rapid population growth, favorable government policies and an abundance of private-sector LED lighting projects.