China's LED Market is Expected to Reach $24 Billion by 2024

<< Go Back Posted By:administrator on Dec 15,2017in Industry News

By 2024, China’s LED lighting market is estimated to surpass $24 Billion. With the development of China’s economy, demand for energy saving LED lighting is also growing. China’s lighting industry has experienced fast development and the country has been a leading lighting consumer and producer in the world for the past 20 years.

The increasing consumer demand for energy-saving lighting systems, the decline in cost of LED, tegerther with high penetration of LED as a light source in the general lighting market has driven the growth of the product. LED lighting has gone from a costly product among Chinese buyers to a value-adding solutions, achieving sustainable growth and gaining market share. China's lighting market is experiencing shifts from traditional lighting to LED technology.

China's Government Strongly Supports LED Lighting

As for the promotion of high-saving LED lighting products,China’s Ministry of Finance (MOF) and  National Development and Reform Commission (NDRC) have collaborated to look after interim measures on the administration of financial subsidies.

The actions like financial subsidies to promote LEDs lighting. In the current situation,the local governments have been more rapidly in response than China’s central government in implementing LED subsidies. In China, Guangdong Province consists the largest LED industry size and has relatively higher amount of subsidies. By 2013, Zhongshan, Dongyuan, Foshan, and many other cities have granted several subsidy projects to promote LED lighting products extensively. At the same time, Power costs saved by LEDs are all used to subsidize construction projects in Zhongshan city.

LED satifies the demands on energy efficient light source imposed by most of the government. Energy conservation concerns and environmental protection have risen in recent years due to climate change. Rules across the world has become more rigorous and governments offer incentives for entire building infrastructures,encouraging eco-friendly initiatives.

In addition to general financing, new lighting installations can be financed through government and municipality projects (private financing initiatives, public/private partnership) and carbon financing under the Clean Development Mechanism. In the meantime,the potential demand for urban public lighting projects are getting huger as China continues to urbanize.

Since October 2012, China has banned the import and sale of all incandescent bulbs over 100 watts, and on October 1, 2016, the country extended steadily the ban to those over 15 watts. In China, the commercial lighting of the LED lighting market dominates the market share compared to other lighting. Other LED lighting such as industrial, residential, and outdoor lighing are also performing well in China. Further more, implementation of LED lighting standard in China will further to level up the quality of LED lighting.

Source: China LED Market Forecast to Hit $24 Billion by 2024, Energy Manager Today, Dec, 2017