With Indian consumers shifting towards LED lights, the market is expected to grow nearly 3 times by 2022: Bonafide Research
Due to declining trend in the prices of LED lights, exhaustive promotional activities and the government led schemes, Indian consumers have shifted their focus from the old technologies such as incandescent and CFL lights to the newer and better LED technology. The LED lighting market has shown a tremendous growth in India, growing almost 2.5 times in the last two years. With the wind of this transition from traditional lights to LED lights, the market is expected to gain more in the coming years.
Considering the scenario of past five years, Indian households were mostly using CFLs and incandescent lights in all the different areas and for every different application ranging from the area lighting, commercial lighting to residential lighting. It was a tough task for the LED lights to get its root deep down in the market. However, with the efforts made in the right direction this task seems to be almost achieved now. The share of LED lights which was not even 10% of the total lighting market in 2011 grew to more than 20% in 2015. Government has distributed nearly 20 crore LED bulbs and has replaced almost 25 lakh street lights with LED street lights pushing the growth of LED lighting market on a further step.
According to recently published report of Bonafide Research, "India LED Lighting Market Overview, 2016-2022", the lighting market in India has remained on a growing path in the past five years. Though the LED lighting market has not seen a faster growth in the initial years, the market has accelerated fast in the last two years and has never shown a declining trend since its entry. With drawbacks like higher prices and lower awareness amongst the people about the benefits of LED, it was hard to attain a faster growth but the government schemes have proven as a revolution. The market took a wing and started to grow with a rapid pace. Currently, Philips India, Surya Roshni, Crompton Greaves, Bajaj, Havells and Syska are the big players operating in the Indian lighting and LED lighting market. Philips India and Surya Roshni have cashed out the government tenders of UJALA as well as SLNP which added significant revenue in their LED lighting portfolio. Philips has an advantage of being a large scale multinational as well. The market has also remained positive for the small and local LED lighting players operating in the country.
Revenue sources for the LED lighting market are expected to be the government procurements till it achieves its target, along with the re-purchasers made by households to replace traditional lights. LED bulbs being a direct and simple replacement for the old lights, is seeing a steep rise in the sales volume. Another major product that is in the emerging stage is Panel lights. As Panel lights are cheaper than Downlights, they are getting a higher preference by the residential segment. Moreover, with the new architectural designs the use of wall mounted or POP mounted lights are increasing and Panel lights are the direct answer for that need at a reasonable rate. With solution available for every segment of the population, whether it is the lower middle class or the upper class, the LED lighting industry in India is expected to grow rapidly between the period from 2017 to 2022.
Major companies operating in the LED lighting market of India are Philips Lighting India Limited, Havells India Limited, Surya Roshni Limited, Bajaj Electricals Limited and Syska LED Lights Private Limited.