SSL and fluorescent lighting: Key market research findings
- APAC dominates the market geographically
- The commercial segment accounts for a majority share of the market’s revenue
- Key vendors – GE Lighting, OSRAM, Panasonic, and Schnieder Electric
Technavio’s market research analysts predict the global SSL and fluorescent lighting market to grow at a CAGR of more than 15% between 2016 and 2020. The demand for solid-state lighting (SSL) and fluorescent lighting in the market are spurred by the introduction of energy-efficient lighting technologies. As lighting consumes 20% of the global electricity production, the governments of many countries are focusing on promoting energy-efficient lighting technologies. Furthermore, spreading awareness about saving power and energy has triggered the adoption of such energy-efficient technologies. During 2015, APAC accounted for almost 42% of the overall market share to become the dominant shareholder in the global SSL and fluorescent lighting market. The presence of many LED manufacturers and government subsidies in China, robust growth in the Indian LED market, and the maturing Japanese LED market are some of the factors that will propel growth in the SSL and fluorescent lighting market in APAC during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the SSL and fluorescent lighting segments based on the application.
“Recently, there has been a substantial decline in the manufacturing costs of LEDs. The declining ASP of chips and components used in the manufacturing process of LEDs coupled with mass production is triggering this decline in manufacturing costs. The penetration of LEDs in the global SSL and fluorescent lighting market will increase drastically during the forecast period due to their advantages over traditional lighting sources,” says Asif Ghani, Lead Analyst, Semiconductor, Technavio Research.
By 2020, the commercial segment will account for over 35% of the overall market share to become the fundamental revenue generator in the SSL and fluorescent lighting market globally. China is expected to be a major contributor to this segment during the forecast period because of the upcoming airport and railway projects approved by the National Development and Reform Commission. Upcoming events such as the 2016 Summer Olympic Games in Brazil, along with an increase in foreign direct investments (FDIs) in commercial and real estate projects, have increased the demand for commercial lighting.
The key vendors in the global SSL and fluorescent lighting market include GE Lighting, OSRAM, Panasonic, and Schnieder Electric. The global SSL and fluorescent lighting market is characterized by the dominance of traditional companies like Panasonic and Philips. However, at present, the hold that these companies have over the market will be challenged by the introduction of new players. New vendors like Nichia manufacture LED chips and packages, whereas vendors like Cree, supply complete lighting solutions. The level of competition is expected to intensify due to the constant change in market dynamics as consumers prefer energy-efficient and cost-effective lighting products. Most companies in China are expanding their businesses to gain maximum market shares as the demand for LED lighting is high in this country.
A more detailed analysis is available in the Technavio report, Global SSL and Fluorescent Lighting Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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