Chinese LED lighting market to more than double to $7.4 billion in 2017, forecasts Lux Research
The growth is the result of a combination of ongoing urbanization, local energy savings targets, and price cuts that make the technology more appealing said Lux Research.
Both residential and commercial segments will drive LED lighting to a compound annual growth rate (CAGR) of 24%, far outpacing the 5.6% CAGR for the broader lighting market. As a result, LED lighting will grow its share of the lighting market from 9.6% to 18%.
“LED lighting has changed from expensive products outside the cost-conscious sweet-spot of Chinese buyers to value-adding solutions, gaining market share and realizing sustainable growth,” said Jerrold Wang, Lux Research Associate and the lead author of the report titled ‘Running to the Light: Sizing China’s LED Lighting Market’.
Lux Research revealed that Guangdong, Shanghai, Zhejiang, and Jiangsu are the premium markets. In Lux’s Market Adoption Grid, these provinces emerged as the upper tier of ‘premium’ markets for LED adoption. Guangdong offers the best overall combination, driven by the largest new and existing building floor space in 2015.
The residential segment shows fastest growth. The Chinese residential LED market will grow from $23 million in 2013 to $310 million in 2017, a CAGR of 92%, the highest among five market segments – as average prices fall the fastest, from $6.02 per fixture in 2013 to $3.13 in 2017.
China’s end-product market is highly disaggregated, with more than 5,000 players. The top 50 suppliers account for only 33% of the market and the top 10 take merely 18%. Industry consolidation is imminent over the next five years, with suppliers of poor-quality products facing elimination.
Visit Lux Research at www.luxresearchinc.com
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