Current LED Lighting Market Outlook in India

1. Current LED Lighting Market Scenario In India

2. In India, lighting was traditionally dominated by fluorescent tube lights (FTLs) and incandescent bulbs (ICLs) until a decade ago. The prime reasons attributed to their dominance were easy availability, cheaper relative to other lighting products and easy installation. However, these lighting sources were highly inefficient in terms of energy consumption. FTLs and ICLs use close to 20% of energy whereas the remaining energy gets converted into heat.

3. The government of India identified these glitches in the Indian lighting sector and therefore started aggressively promoting energy efficient sources of lighting in the country. This led to the advent of Compact Fluorescent Lights (CFLs). Initially, CFLs were quite expensive in the Indian market. However, rising demand and high economies of scale led to a fall in the prices of CFLs in the country. As technology advanced, superior sources of lighting such as LEDs came into the market.

4. India LED Market Size by Revenue in INR Million, FY’2009-FY’2014

5. Light Emitting Diodes (LEDs) are solid state semiconductor devices, which were first introduced in the 1970s. Although, LEDs have existed for over three decades, the Indian population was oblivious of its benefits until a few years ago. The Indian LED market came into existence in the year 2009, thereby making it a nascent market presently. Even today, LEDs are considered to be a minority in the Indian lighting market.

6. The use of LED lighting is highly beneficial, not only for the environment but also the user. Some of the benefits offered by LED lighting are long life, energy efficiency, environment friendly and durability. Additionally, LED lights require a low voltage power supply relative to conventional lights.

7. The market was estimated at INR ~ million in FY’2014 thereby displaying a CAGR of 56.1% during FY’2009-FY’2014.

8. India LED Market Segmentation by Organized and Unorganized Players on the Basis of Revenue, FY’2012-FY’2014

9. India LED Market Segmentation by Organized and Unorganized Players on the Basis of Revenue, FY’2012-FY’2014

10. The overall lighting market in India has been growing at a rate of 17-18% annually for the past three years, whereas the LED lighting market has been growing at an annual rate of ~% year on year with slight variations. A nation such as India could greatly benefit from extensive usage of LED lighting as it would lead to a sharp fall in the overall electricity consumption in the nation.

11. The Ministry of Power intends to set up 80 new coal fired plants in order to meet the surging demand for electricity in the country. The government would have to allocate significant amount of government spending in order to implement such a project. However, simply replacing existing lighting technology with LED technology would reduce the country’s electricity demand by as much as 40%. Thus, the potential of LED technology in India is astounding.

12. The LED lighting market was valued at INR ~ million in FY’2009 which further increased to INR ~ million in FY’2010. The growth of the market has been driven by factors such as fall in prices, rise in personal disposable incomes and rising awareness among the population about the potential benefits of LED technology.

13. The LED market further grew to INR ~ million in FY’2011. Although, most households still rely on CFLs for their lighting needs, the commercial sector was the first to adopt LED technology in the country. The market was estimated at INR ~ million in FY’2014 thereby displaying a CAGR of 56.1% during FY’2009-FY’2014

14. Source: https://www.kenresearch.com/energy-and-utilities/clean-technology-industry-/india-led-lighting-market-research-report/617-103.html • Contact: Ken ResearchAnkur Gupta, Head Marketing & CommunicationsQuery@kenresearch.com+91-11-47017199

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