India LED Lighting Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

India LED Lighting Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Indian LED Lighting market is expected to grow at a CAGR of 23.2% during the forecast period (2022-2027). The need for outdoor LED lighting has historically been subjected to moderate growth due to the significant change in demand for LED technology with improved features and usage. This is projected to fuel the development of the market during the forecast period.

Key Highlights

• LED lights consume 75% less energy and last 25 times longer than incandescent bulbs. They have the highest potential for saving energy and cost. Hence, replacing old lighting systems with LED lightings has been beneficial. The demand for new installations in the outdoor LED lighting market is significantly increasing.
• Moreover, the LED penetration for outdoor applications in India has been continuously increasing. Also, government initiatives aimed at structuring regulations for encouraging LED adoption are also fueling market growth. For instance, EESL (Energy Efficiency Services Limited), a JV under the Ministry of Power, aims to install 1.6 crore smart LED streetlights across the nation by 2024.
• The ongoing transformation and infrastructure expansion projects are further expected to surge the demand for LED lighting, leading to market growth. For instance, initiatives such as Smart City are expected to support the development of the LED lighting market in India.
• The ongoing COVID-19 pandemic had a significant impact on the market. The COVID-19 impact has been observed at the first or starting node of the market value chain, i.e., lighting products manufacturers. Additionally, the market is witnessing halting of production and disruption in the supply chain, leading to weakened industrial output growth and the decline of light manufacturing output across significant manufacturing hubs.​
• Moreover, the initial cost of the LED lighting housing can sometimes depend on the environment as well. Lighting systems deployed in harsh environments have to be safeguarded to withstand extreme conditions. Such a safeguarding arrangement can increase the cost of the equipment.

Key Market TrendsLED Lamps Segment to Hold a Significant Share

• An LED lamp or LED bulb uses a semiconductor to convert electricity into light. They are significantly more energy-efficient than other types of lamps like incandescent lamps and fluorescent lamps. Additionally, commercial LED lamps have a much longer lifespan than incandescent lamps.
• The huge energy-saving potential of LED lamps, coupled with their decreasing prices over the past few years, has accelerated the demand for these lighting products across India. Additionally, many government policies have been implemented in recent years to increase their adoption.
• For instance, in March 2021, India launched Gram Ujala scheme offering cheap LED bulbs in rural areas at INR 10. In its first phase launched from Arrah in Bihar, 15 million LED bulbs were to be distributed across villages of Arrah (Bihar), Varanasi (Uttar Pradesh), Vijaywada (Andhra Pradesh), Nagpur (Maharashtra), and western Gujarat.
• Further, as per the union power ministry of India, Convergence Energy Services Limited (CESL) has already distributed 5 million LED bulbs under the Gram Ujala program, as of December 2021. The distribution has resulted in energy savings of 71,99,68,373.28 units per year with cost savings of INR 250 crores per year.
• Product innovation also continues to rise in the segment, with many new product launches in the segment. For instance, in March 2021, Realme India announced plans to launch Realme Smart LED bulbs in India. The product has a rated power rating of 9W with an input voltage of AC 120~250V. The lights can be controlled using either the Realme Link application, Google Home, or Amazon Alexa.

Outdoor Application is Expected to Grow Significantly

• Several government policies are driving the adoption of LED lighting in the highway and roadway infrastructure of India. The government of India's zero-subsidy LED Street Lighting National Programme (SLNP) and Unnat Jyoti by Affordable LEDs for All (UJALA) marked their seventh anniversary in 2022. SLNP is the world's most extensive streetlight replacement program, and UJALA is the world's largest domestic lighting project. Both have been implemented by Energy Efficiency Services Limited (EESL), a joint venture of PSUs under the Ministry of Power, Government of India.
• Further, the increasing usage in government projects creates significant opportunities for the market segment in the coming years. For instance, The Bidhannagar Municipal Corporation (BMC) started the much-delayed LED street light project in Kolkata, West Bengal. In the project, LED lights will replace all sodium vapor streetlamps across 41 wards. Near to INR 32 Crore will be invested in this project. The project will deploy LED lights from a wide variety of power range up to 190 Wattage. This will further fuel the growth of this segment in the coming years.
• Moreover, conventional high-intensity discharge (HID) and fluorescent lighting systems methods are inefficient in industrial settings with high, hard-to-reach ceilings and expansive spaces, creating lighting challenges and inefficiencies. Hence several industrial facility managers adopt customized LED lighting solutions that maximize savings and improve performance throughout their facilities. Additionally, HID systems are not compatible with advanced sensors and wireless controls. Besides, long strike-up times often force facilities to leave these lights on for more extended periods. Hence, LED lighting solutions with advanced lighting controls that harvest daylight to reduce energy usage or turn lights on and off at pre-designated times in pre-designated zones are witnessing significant demand in India.
• However, significant sports stadiums in India still do not utilize LED lighting systems. For instance, in January 2021, The Karnataka State Cricket Association (KSCA) announced installing a new floodlight structure at an estimated cost of INR 4.5 crore at the M Chinnaswamy stadium are waiting to replace metal-halide lamps with LED fixtures.
• Moreover, malls and showrooms consider necessary actions to attract the eyes of their customers and trigger the purchase intent. Appropriate and appealing illumination is vital to make the offered products look more desirable in such a scenario. LED lights are versatile and available in various colors, sizes, wattage, and shapes, which are used for decoration purposes during the festive seasons in India. These factors are driving the usage of LED lighting in such commercial spaces.

Competitive Landscape

The Indian LED lighting market is highly fragmented, with many domestic and international players in the country. Due to the fragmented nature of the market, the competition among the players is high. Due to the continuous fall of LED prices in the country, the competition has further increased among the manufacturers, driving further innovation and broader product choices and lower costs.

• June 2021 - Syska announced the launch of two new LED lighting products, the T5 LED Batten-SSK-SQ2201 (PC-Polycarbonate) and Syska T5 LED Batten (AL-Aluminium)- SSK-SQ2201, in India at INR 449 and INR 549, respectively. Both the products have been manufactured in India.
• January 2021 - Osram India announced their compact high-power LED Osconiq C 2424 that offers a broad color temperature range from cool to warm white and various color rendering indices (CRIs). The LED features excellent color homogeneity and color-over angle performance.

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