Chinese LED manufacturers usher in new business opportunities

<< Go Back Posted By:administrator on Jan 22,2015in Industry News

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With the development of the global LED lighting industry, Europe and other mature markets are nearly fully saturated, and it has been difficult for Chinese manufacturers to squeeze into the market. Chinese market is also moving to intense competition, entering into an era of price wars, and economics of scale. At this time, emerging markets rich potentials is undoubtedly full of opportunities and challenges for Chinese makers.

In the Russian market, LED lighting showed substantial increase, reaching $2.48 billion, and market penetration rate peaked to 32% in 2014. By 2016, LED lighting market is expected to reach $5.07 billion, with penetration rate climbing further up to 44%. Russia will be the 4th largest market, following Europe, U.S. and China. In Russia, large energy consumption, high energy-saving demands, favorable policies and tariffs, increasing commercial building lighting demands, world-class sports events, as well as the development of infrastructure projects, all will accelerate the penetration rate and market scale of LED lighting.

The Southeast Asian LED lighting market value including 6 major countries Thailand, Singapore, Malaysia, Vietnam, Indonesia and the Philippines reached about $11 billion, and market penetration rate reached 25% in 2014. It is expected that in the coming years, the expansion of China and ASEAN ´╝łAssociation of Southeast Asian Nations´╝ë bilateral trade agreements, the tariff concessions, will promote closer trade between Southeast Asian countries and China. With government incentives and growing demands for lighting replacements, LED lighting penetration rate and import scale in Southeast Asia will continue to soar. Southeast Asia is becoming a new gold mine for Chinese LED lighting manufacturers.