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25 April 2013

China’s LED lighting market to reach $10bn in 2015, then $22bn in 2020

The Chinese government passed a series of domestic policies in 2012 that have served to not only stimulate LED lighting demand but also to strengthen the entire business momentum within the LED lighting market, according to the ‘Chinese Lighting Market Report (2013 version)’ released by LEDinside (a research division of TrendForce). Key policies worth noting include the proposed spending of RMB2.2bn on the promotion of CFL and LED lights. Bans on the sales of 100W-and-above incandescent light bulbs - along with halogen lamps whose efficiency falls below required standards - took effect on 1 October 2012.

With the general demand for traditional lighting replacement, both LED-based and energy-saving lighting items are expected to gain significant momentum. LEDinside has attempted to quantify the Chinese LED lighting market by formulating a model based on the original demand for general luminous flux and the replacement demand for LED-based lighting. To maximize accuracy, factors such as China’s domestic economic growth and factors increassing the penetration of LED lighting in China were also taken into account. LEDinside forecasts that, by 2015, Chinese LED lighting demand will rise to as much as US$10bn. Assuming that the country is successful in maintaining its economic growth and increasing the popularity of LED lighting, demand is likely to more than double from 2015 to US$22bn in 2020, says LEDinside.

Despite the large scale of China’s LED lighting market, different marketing channels are expected to exert different impacts on the various production life-cycles of LED lighting products, says the market research firm. While China’s LED industry development is at present still known to be dependent on engineering projects and bidding projects, the situation is expected to change for the better if more LED lighting manufacturers develop their business channels and tradition lighting manufacturers generally use LED luminaires. Via online and physical sales channels, the popularity of LED lighting products will ultimately rise, says LEDinside. In time, LED lighting is expected to break away from the confines of its segmented market and reach a broader audience in China, the firm adds.

Tags: LED market


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