According to the latest research study released by Technavio, the global SSL and fluorescent lighting market is expected to grow at a CAGR of around 15% until 2020.
This research report titled ‘Global SSL and Fluorescent Lighting Market 2016-2020’, provides an in-depth analysis of market growth in terms of revenue and emerging market trends. The report segments the market on the following bases:
- Application: Residential, commercial, outdoor, industrial, and architectural
- Region: The Americas; APAC; and Europe, the Middle East, and Africa (EMEA)
“A smart city is integrated with several information and communication technology solutions to improve the quality of life and drive economic growth. Therefore, governments across the globe are investing in technologies such as climate action plans, open data platforms, water management, smart grids, smart street lighting, urban mobility, and smart parking,” said Asif Gani, one of Technavio’s lead analysts for semiconductor equipment research.
“Smart cities will be connected through different technologies supporting data integration, which cannot be achieved with conventional lighting systems. Therefore, the demand for LED lighting systems will increase with the development of smart cities. LED lighting companies such as Philips, Havells, and Toshiba are focusing on their LED business segments. They are investing in R&D centers due to anticipated opportunities for LED lights in the smart cities projects,” added Asif.
Global SSL and fluorescent lighting market by application 2015 (% share)
The residential segment was valued at USD 6.72 billion in 2015. As of 2016, China is a leading market for the residential lighting segment due to its growing urban population and the increasing focus of end-users on trendy and personalised lights for home decoration. Subsidies offered by the Chinese government to promote energy-efficient lighting are leading to a decline in the price of LED lighting. In addition, sales of LED lights are expected to increase during the forecast period due to benefits such as color tuning, brightness tuning, and long lifespan.
China is followed by Brazil in this segment. The residential segment is primarily affected by the growing urban middle-class population in the country and changing consumption patterns of consumers toward designer products.
This segment was valued at USD 5.91 billion in 2015. China will be a major contributor to the commercial segment during the forecast period because of the upcoming airport and railway projects approved by the National Development and Reform Commission. The country will spend USD 115 billion on 21 supersize infrastructure projects. In addition, China’s largest property developer Dalian Wanda Group is coming up with new projects through crowdfunding.
China will be followed by India, where the 100 smart cities project will drive the growth of the segment during the forecast period. The government has allocated USD 14.73 billion to implement the smart cities plan, which will include the development of smart ports, smart railways, smart villages, and SEZs. Companies like Philips, Bajaj Electricals, and Havells are focusing on the project.
This segment was valued at USD 2.43 billion in 2015. The outdoor segment is set to grow during the forecast period, with local municipal corporations and urban planners implementing plans for the installation of new street lights and the renovation of existing lighting systems.
India will lead the outdoor segment among BRIC nations. The adoption of LED lighting is ramping up rapidly in metropolitan cities due to government initiatives to replace incandescent bulbs with LED bulbs for street lighting. The government is providing LED bulbs at subsidised rates to create awareness about their benefits. India is still in its nascent stage in the adoption of LED lights, but its outdoor segment has emerged as the fastest-growing segment of the lighting market.
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