Market Trends of asia pacific led lighting Industry
Increase in construction and sales of residential houses to drive the growth of the LED market
- Asia-Pacific is home to 60% of the world's population. Numerous nations in the region, notably China, are in the top ten in terms of population growth. In China's lower socioeconomic strata, as of 2019, more than 60% of residents were homeowners. In comparison to citizens of big cities, the ownership rate was substantially greater. In lower-tier cities and towns, 41% of homeowners did not have a mortgage on their home. The increased use of LEDs may be influenced by the rise in home purchases in China. Moreover, India has shown that it is possible to install LED technology quickly and extensively via campaigns promoted by the companies.
- The other nations' construction industries are prospering as their native and immigrant populations both grow quickly. For instance, the volume of residential buildings climbed by 5% in Indonesia in 2017 and by 1% in 2019, and this trend will continue throughout the forecast period due to the countries' growing populations. As a result, the rapidly expanding building sector in Asia-Pacific will increase the demand for LEDs in the regional market.
- China had the most households in Asia-Pacific as of 2021, with a total of over 449.7 million. In addition, there are 295.1 million, 68.9 million, and 48.5 million households in India, Indonesia, and Japan, respectively. There is a steady rise in the number of households in these nations, which suggests that more homes are being built and that the demand for LEDs in the Asia-Pacific is rising. Over 23.6 million of the 37.5 million passenger cars sold in 2022 in Asia-Pacific were in China. Comparatively, Asia-Pacific sold about 34.57 million passenger cars in 2021. The demand for LEDs in the region will be aided by the rise in automotive vehicle sales in Asia-Pacific.
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The market is driven by increasing population, increasing per capita income, and government subsidy to promote the use of LED lights
- Asia-Pacific is home to 59.7% of the world’s population, which is around 4.7 billion people, and includes the world’s most populous countries, such as China and India, and 46.3 % of the population is urban (2.14 billion people in 2019).
- The region's overall fertility rate is close to 2.1 births per woman. Family size has decreased to 1.7 children per woman in East Asia while maintaining a high of 2.5 children per woman in South Asia. Further, two out of every five people in the region currently live in urban areas. This ratio will increase significantly in the coming years as millions move from the countryside to towns and cities in search of employment and better opportunities. Thus, the increase in the number of households in urban areas is expected to create more LED penetration for need for illumination in region.
- This region includes several developing nations, and despite pandemic, disposable income is growing in developing countries. China's per capita income reached USD 12,732.5 in December 2022, compared to USD 12,615.7 in December 2021. India’s per capita income reached USD 2301.4 in March 2022, compared to USD 1971.6 in March 2021. Japan's per capita income reached USD 33,911.2 in December 2022, compared to USD 39,916.1 in December 2021. Such instances result in the rising spending power of individuals and affording more money for new residential spaces. For households, in 2012, the Chinese government offered a subsidy of CNY 2.2 billion (USD 0.31 billion) for the use LEDs. The Japanese government introduced a consumer rebate program known as the "Eco-Point" program in April 2010. Users may use their Eco-Points to purchase LED lamps at a 2 to 1 Eco-point ratio, which is further expected to surge the demand for LED lighting.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing EV incentives to sell more electric vehicles to drive the growth of the LED market
- Increasing car loans, growing market for luxury cars, and EV adoption drive the growth of the market
- Increasing growth of luxury car and SUV demand, increasing population, and EV adoption are driving the growth of the LED market
- Initiatives related to infrastructure development and increasing use of energy-efficient lighting to drive the growth of LED lights
- LED light upgrade project, government offering subsidies, and tax benefits to raise LED localization and reduction of GHG emission to drive the growth of LED lighting market
- Increasing indoor farming, construction of vertical farming farms, and investment in agritech startups to drive the growth of LED lighting market
- Increasing investment in commercial buildings, buying luxury cars, and adoption of EV to increase the growth of the LED market
- Rapid growth of battery swapping station, increasing battery recycling service outlets, and providing subsidies for EV are driving the LED market
- Government initiatives to promote energy-efficient LED lights in the region to increase LED light sales
- The market is driven by growing highway network connectivity and projects to replace traditional bulbs with LED lights
- Construction and refurbishing of new stadiums to drive the growth of LED market
