Greentech Lead America: Revenue from global LED lighting market for buildings will rise from $9.46 billion in 2013 to a total of $25.4 billion by 2017, growing at a compound annual growth rate (CAGR) in the overall market of 22 percent, over the 5 year period.
LED lighting market growth will be the highest in India, approximately 31 percent CAGR but from a very low base, and penetration rates there are likely to remain relative low.
The rest of Asia (with the exception of Japan) will experience growth of around 24% CAGR due to positive legislation, new construction, and government incentives, the report said.
The global shape of the LED lighting market will stay broadly the same over the 5 years, with the EU, North America, Japan and China still taking up the largest proportion of LED revenues.
According to the report, many global lighting product sectors remain highly fragmented. This is likely to change over the next few years. The continued drive for improved lighting performance and lower costs should drive continued vertical integration in the market particularly downstream in the value chain.
With more building controls companies eyeing the market, and acquisitions of lighting controls companies by LED lamp and luminaire manufacturers likely to continue. The prospect of mega acquisition deals that further consolidate the market are also not off the table looking forward to 2017; be they for access to unique LED technology IP or for access to customer base and distribution channels.
Earlier reports suggest that prices of LED lighting systems have fallen by more than 30 percent in the past 2-3 years due to increasing adoption and manufacturing technology improvements, according to a recent report from Frost & Sullivan.
With 20 percent of electricity consumption in a building attributed to lighting systems, there a great potential for LED lighting to gain prominence in India.
Bureau of Energy Efficiency (BEE) implemented Bachat Lamp Yojana, an ongoing program to promote energy-efficient and high-quality CFLs as replacement for incandescent bulbs, during the 11th Five Year Plan (FYP) (2007-12).