27 November 2017
China LED lighting market to exceed $24bn by end 2024
The China LED lighting market will exceed $24bn by end 2024, forecasts Renub Research in a new report.
Escalating urbanization, price cuts and local energy savings targets are making the technology more tempting. China’s lighting industry has been on the rise, and the country has become a leading lighting consumer and producer.
Government backing of LED lighting
To promote high-efficiency LED lighting products, the National Development and Reform Commission (NDRC) and China’s Ministry of Finance (MOF) collaborated on interim measures concerning the administration of financial subsidies. Such initiatives are working, notes the report. In the current scenario, local governments are working more proactively than China’s central government in implementing LED subsidies. Guangdong Province comprises the largest part of China’s LED industry and correspondingly receives the most subsidy. As of 2013, Foshan in Guangdong Province, Dongyuan, Zhongshan and many other cities have launched several subsidy projects to promote mass-market LED lighting products. In the meantime, the energy costs saved by LEDs are all being used to subsidize construction projects in Zhongshan city.
Since October 2012, China has banned the import and sale of all incandescent bulbs over 100W, and on 1 October 2016 it steadily extended the ban to those over 15W.
Commercial segment dominates
The commercial segment dominates the China LED lighting market. Other segments such as residential, industrial and outdoor are also performing well. Moreover, the implementation of LED lighting standards in China should further shift LED lighting towards high-quality LED products, it is reckoned.
Due to technology and innovation in LED lighting products, the average price of LED bulbs is gradually falling year-on-year and approaching that of conventional lightening products. Consequently, demand for LED lighting products is expanding. This applies particularly to the residential and commercial segments, the report concludes.