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Analysis on the market situation and development trend of global LED lighting industry

Feb 19, 2019

Analysis on the market situation and development trend of global LED lighting industry

In order to improve energy efficiency, protect the environment, and combat global climate change, as the most advantageous new type of high-efficiency energy-saving lighting products, LED lighting products are the world's energy-saving lighting key promotion products. Previously, due to the higher prices of LED lighting products than traditional lighting products, its market penetration rate has been at a low level. With the increasing attention of countries around the world to energy conservation and emission reduction, LED lighting technology and price decline, as well as countries to introduce a ban on the sale of incandescent lamps, the promotion of LED lighting products in the context of the positive policy, LED lighting product penetration continues to improve, 2017 global led penetration rate reached 36.7%, It is up 5.4% from 2016 and is forecast to rise to 42.5% in 2018.

Industry demand continues to weaken, influenced by economic and market downside

In the global concept of energy conservation and environmental protection and the support of national industry policies, in recent years, the global LED lighting market has maintained an overall growth rate of more than 10%, the 2017 global LED lighting industry scale of 55.1 billion U.S. dollars, an increase of 16.5% year-on-year. However, the slowdown was slower than in previous years, mainly due to the decline in terminal prices for LED lighting products and the decline in the stock of market replacement.
Entering the 2018, the growth momentum of the global LED lighting market is bland and weak, from the regional economic performance, in addition to the strong economic recovery of the United States, affected by exchange rates and uncertainties, many emerging economies are facing the negative pressure of recession, including India, Turkey, Argentina and other regions are showing the crisis of market shock, Thus weakened the growth performance of the domestic market, in the overall economic chaos unknown, as the demand for people's livelihood lighting market also presents the phenomenon of the weak terminal pull.
The development trend of each region is different, and the industrial pattern of three-legged has been formed.

 From the global regional development situation, the current global LED lighting market has formed the United States, Asia, Europe as the leading three-legged industrial pattern, and presented with Japan, the United States, Germany as the industry leader, China, Taiwan, South Korea followed, China, Malaysia and other countries and regions actively follow up the Echelon distribution. Among them, the European LED lighting market continues to grow in size, reaching 14.53 billion U.S. dollars in 2018, with a 8.7% year-on-year growth rate of more than 50%. One of the use of commercial lighting lights, filament lamps, decorative lights and other growth kinetic energy is the most significant.

American lighting manufacturers all have bright revenue performance, and the main revenue from the United States market. The cost is expected to be passed on to consumers under the influence of the tariff increases imposed by the Sino-US trade war and the price of raw materials.
Southeast Asia is gradually developing into a highly dynamic LED lighting market, thanks to rapid local economic growth, large infrastructure investment and a large population, so there is a high demand for lighting. LED lighting penetration is rising rapidly in the Middle East and Africa, and future market potential is still available.