Market Trends of india indoor led lighting Industry
Increasing nuclear families, urbanization, and increasing per capita income are driving the growth of the housing sector
- The average household size in India in 2014 was 4.8 people per household. In many states and union territories, more people live in rural households than in urban households. The average household size, including all registered households, was 4.4 by 2022, which resulted in increased private household/own housing ownership. More than 50% of people in India live in their own houses, while almost 30% live on a rental basis and 13% in their parents’ houses. A large share of the total urban population are migrants. The increase in the number of migrants is expected to create LED penetration in the country to meet the need for illumination.
- In India, disposable income is growing, resulting in the rising spending power of individuals and spending on new residential spaces. India’s per capita income reached USD 2,301.4 in March 2022, compared to 1,971.6 USD in March 2021. Compared to some developing nations, India’s per capita income is less. For instance, in 2022, Japan’s per capita income was USD 33,911.2, Vietnam's was USD 3,716.8, and China’s was USD 12,732.5. This suggests that the purchasing power of individuals in India may be lower than those of other nations.
- The Indian real estate sector has witnessed high growth in recent times with a rise in demand for office as well as residential spaces. Housing sales in seven Indian cities increased by 29% and new launches by 51% in Q4 FY21 over Q4 FY20. The government introduced a few energy-saving schemes. The Power Ministry distributed 36.78 crore LED lights under the Unnat Jyoti by Affordable LEDs for All (UJALA) program in seven years, which saved 47,778 million units of electricity per annum. The program was launched on January 05, 2015. Such instances are further expected to raise the demand for LED lighting in the country.
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Increasing FDI and emphasis on efficient lighting is pushing the implementation of LEDs
- In 2021, the industrial sector consumed 41% of all energy, followed by the household sector (26%) and the commercial sector (8%). Additionally, the construction sector is expanding quickly. In March 2021, the Parliament approved allowing 100% FDI in India's construction sector through the automatic route for the operation and management of townships, malls/shopping centers, and commercial buildings. This suggests that more buildings will be built, raising the need for LEDs.
- Electricity demand in the commercial sector tends to be around 11-13 hours. Electricity use in the industrial sector tends not to fluctuate through the day or year. Electricity demand in the residential sector tends to be highest in the evenings, when lights are turned on, and the average lighting time varies for about 6 to 8 hours. Further, due to improved brightness and fewer dark areas, the Street Lighting National Program has allowed citizens to increase their productivity at night and made roadways safer for drivers and pedestrians. The electricity costs in the states where 1.03 crore smart LEDs have been installed are reduced by up to 50%. These automatic lights minimize waste by turning on and off at sunrise and sunset.
- In 2021, renewable energy accounted for around 20% of total electricity generation. The nation is slated to reach a renewable energy capacity of 500 gigawatts by 2030. Additionally, more than 36.13 billion LED lights have been distributed throughout India as part of the UJALA initiative. As a result, there have been estimated annual energy savings of 46.92 billion kWh and reductions in greenhouse gas emissions of 38 million CO2 annually. This initiative has reduced electricity use and promoted LED use in the country.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Indian government schemes are providing affordable residential homes, boosting the LED light penetration in the country
- Production linked incentives to encourage local LED manufacturing industries.
- Government is promoting greenhouse farming through schemes such as Mission for Integrated Development of Horticulture (MIDH)
- Rising per capita income in the country is boosting the demand for LED lighting from the residential, commercial, and automotive sectors
- Government schemes such as UJALA are increasing the penetration of LEDs in the country
