Market Trends of India LED Lighting Industry
LED Lamps Segment to Hold a Significant Share
- An LED lamp or bulb uses a semiconductor to transform electricity into light. They are extremely more energy-efficient than other types of incandescent and fluorescent lamps. In addition, commercial LED lamps have a longer lifespan than incandescent lamps.
- The massive energy-saving potential of LED lamps, connected with their lowering prices over the past few years, has boosted the demand for these lighting products across India. Additionally, numerous current government policies have been executed to expand their adoption.
- For instance, in the recent past, India launched the Gram Ujala scheme presenting cheap LED bulbs in rural areas at INR 10 (USD 0.13). In its first phase, established from Arrah in Bihar, about 15 million LED bulbs were distributed across villages of Arrah (Bihar), Varanasi (Uttar Pradesh), Vijayawada (Andhra Pradesh), Nagpur (Maharashtra), and western Gujarat.
- Further, as per the union power ministry of India, Convergence Energy Services Limited (CESL) distributed 5 million LED bulbs under the Gram Ujala program by December 2021. The distribution resulted in energy conservation of 71,99,68,373.28 units per year with savings of INR 250 crores (USD 30.4 million).
- Product innovation continues to rise, with many new product launches. For instance, in March 2021, Realme India announced plans to launch Realme Smart LED bulbs in India. The product has a rated power rating of 9W with an input voltage of AC 120~250V. The Realme Link application, Google Home, or Amazon Alexa can control the lights.
- Furthermore, According to the Office of Economic Advisor (OEA(India)), the Wholesale Price Index(WPI) for electricity in India from 2013 to 2022 increased to 117.4, considered from the base year of 2012 with a WPI of 100. It is predicted to increase more in the future, which impacts the retail electricity price to the consumer. The consumer would likely switch to the LED light to save power consumption and expense and drive the LED lighting market.
Understand The Key Trends Shaping This Market
Download Sample
Outdoor Application is Expected to Grow Significantly
- Numerous government policies drive the adoption of LED lighting in India's highway and roadway infrastructure. The Indian government's zero-subsidy LED Street Lighting National Programme (SLNP) & Unnat Jyoti by Affordable LEDs for All (UJALA) celebrated their seventh anniversary in 2022. SLNP is the world's most vast streetlight replacement program, and UJALA is the world's biggest domestic lighting project. Both have been executed by Energy Efficiency Services Limited (EESL), a joint venture of PSUs under the Ministry of Power, Government of India.
- Further, the increasing usage of government projects provides substantial opportunities for the market segment in the forthcoming years. For instance, in February 2023, The Bidhannagar Municipal Corporation (BMC) announced a tender for installing 200W LED Flad Light of Rabindra Maydan Play Ground at Santi Nagar Ward under Bidhannagar Municipal Corporation. Such activities by various municipal corporations across the country will also fuel the growth of this segment in the coming years.
- Moreover, traditional high-intensity discharge (HID) and fluorescent lighting systems could be more efficient in industrial settings with high, hard-to-reach ceilings and vast spaces, making lighting challenging & ineffective. Hence many industrial facility managers adopt customized LED lighting solutions that increase savings and enhance performance throughout their facilities. Additionally, HID systems are incompatible with advanced sensors & wireless controls; long strike-up times usually force facilities to keep these lights on for extended periods. Hence, LED lighting solutions with advanced lighting manage the harvest daylight to lower energy usage or turn lights on and off at pre-designated times in pre-designated zones are noticing significant demand in India.
- However, major sports stadiums in India still need to utilize LED lighting. For instance, The Karnataka State Cricket Association (KSCA) in recent past announced the deployment of a new floodlight structure at an estimated cost of INR 4.5 crore (USD 457 thousand) at the M Chinnaswamy stadium, yet to substitute metal-halide lamps with LED fixtures.
- Moreover, malls and showrooms consider required actions to attract the eyes of their customers and trigger the purchase intent. Relevant and attractive Illumination is essential to make the presented products look more desirable in those scenarios. LED lights are versatile and functional in different colors, sizes, wattage, and shapes, utilized for decoration during India's festive seasons. These factors fuel the usage of LED lighting in such commercial spaces.
- Furthermore, according to The Ministry of Electronics and Information Technology (MEITY), India, Light emitting diodes production across India was valued at about INR 163 billion (USD 1.98 billion) in the financial year 2021 and is expected to grow more in the future and be a driving factor to the market.
