With the development of global LED lighting industry, nowadays, the LED industry in all regions has formed new pattern. The market is no longer occupied by Europe and the United States and other developed countries, many new blue ocean markets are emerging.
Most countries in Southeast Asia except for Singapore are with poorly developed economies. However, with abundant human and natural resources, Southeast Asia becomes one of the most dynamic and promising regions in the present world economic development. In future, Southeast Asia will become more prominent in the new world political structure and economy situation. Moreover, Southeast Asia is a southern neighbor of China, as the friendly relations between China and Southeast Asian Nations are developed, their cooperation will endure and be closer.
The overall electricity price level in Southeast Asia is high, which results in significant demand for lamp replacement in Southeast Asian Nations. With the rapid improvement in the economy of other Southeast Asian countries, the per capita demand for lighting will increase accordingly, and the enhanced energy-saving awareness and demand will make the LED lighting industry to achieve rapid growth and popularity in Southeast Asia. In addition, Southeast Asia has large infrastructure investment and very attractive policy, so it is becoming the emerging market considered promising by Chinese domestic manufacturers.
LED Lighting Scale Improved Rapidly, with Penetration of 37% in 2016
According to LEDinside's statistics, calculated by six major countries (Thailand, Singapore, Malaysia, Vietnam, Indonesia, Philippines), the overall lighting market size of Southeast Asia in 2015 is about USD 4.8 billion, of which LED lighting takes up about USD 1.5 billion, and is expected to grow to USD 1.9 billion in 2016. During 2014-2016, the Southeast Asian LED lighting market share has increased significantly, and the penetration rate is expected to grow from 25% to 37%.
Except for Singapore, the overall lighting scale of other South Asian countries showed an upward trend in recent years, but the traditional lighting scale universally declined, and LED lighting becomes the major growth momentum. Indonesia takes the first place in overall lighting scale and LED lighting scale, with LED lighting market scale is expected to approach USD 460 million.
Vietnam achieved the rapidest growth in LED lighting market share among the major Southeast Asian Nations, maintaining y-o-y increase of more than 60% in 2013-2015. In consideration of the growth impetus brought by government subsidy and market demand growth, the improvement in penetration of LED lighting will accelerate.
The Future Trend is Optimistic, and Southeast Asia will become a major export market for Chinese Manufacturers
LEDinside expressed, observing the LED lighting product imports of Southeast Asian Nations from China, the total import revenue of the six major countries reached USD 1.54 billion in 2015. All countries achieved rapid growth in imports in 2013 and 2014, while the growth slowed in 2015 due to factors including exchange rate and economic environment.
Among the major countries, Vietnam has obtained rapid growth in LED lighting product imports from China in the recent two years because of its large population and rapid demand growth, taking the first place in growth among the major countries in 2013-2015. The imports from China is expected to exceed USD 300 million in 2015.
In view of market scale and import revenue, LED lighting has increased significantly in recent years, and the effort to replace traditional lighting has gradually strengthened. For Southeast Asia that mainly depends on import and has poor local productivity, the increased demand for LED lighting results in significant growth in import demand, in addition, the imports from China saw rapid growth because of advantages in price, manufacturing capability and geographic position.
Although affected by the overall economic environment in 2015, the growth in market and import scale slowed down, it is expected that LED lighting penetration and import revenue in Southeast Asia will continue to improve rapidly in the next few years due to policy incentives and growth in replacement demand. Consequently, Southeast Asia is becoming a major target market for Chinese lighting manufacturers to export LED lighting products.
(Source:LEDinside, Southeast Asia LED Lighting Market Scale and Trends in 2016, April 2016)