Share of LED Lighting Market to increase about 60% in the overall India Lighting Market by 2021: Bonafide Research
Jul, 01

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Share of LED Lighting Market to increase about 60% in the overall India Lighting Market by 2021: Bonafide Research


Growing awareness among consumers, various government initiatives backing LED adoption and major lighting companies planning to set up their manufacturing units in India will reduce the prices further, thus boosting the growth of the market According to recently published report of Bonafide Research "India LED Lighting Market Outlook, 2021", led lighting market was approximately 10% of the total lighting market in 2012. This share of LED lighting market is anticipated to increase upto 60% by the year 2021 due to high adoption of LED lighting in various applications. Until about 10 years ago, the lighting industry in India was dominated by fluorescent tube lights (FTLs) and incandescent bulbs (ICLs) as they were easily available, affordable by the masses, and easy to install and maintain. LEDs remain a minority in the Indian market with only three to five percent market share. In the residential market, LEDs are mostly seen in new constructions, with existing CFL users are less willing to convert to LED lighting. Today, India deals with challenges of energy deficiency, sustainability, and electrification of remote rural regions. Awareness initiatives and government programs involving support to green technologies and provision for preferential excise rates has a positive impact on the LED lighting penetration in India. In the wake of continual Narendra Modi-led government's support for the promotion of LED lighting, which makes up 51 percent of all LED orders, this market is expected to grow substantially. The streetlight market, for instance is benefiting from lighting overhaul in cities of old lights to LED. While in the commercial lighting segment there is a heightened interest in industrial lighting and in downlighters, which in India are vigorously shifting to LED as a source. In addition, the Indian government has proposed major measures to encourage LED industry such as setting up LED Fabs, providing 50% of tendered quantity of LED based product purchases by Government of India to companies who do at least 50% value addition through manufacturing in India. This enables companies manufacturing LEDs within India to gain access to local markets. Also, some other efforts like the reduction of VAT from 12.5% to 5% on LED products, by the Delhi government, have added to the fall in prices and thus increased adoption.