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

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

The India Lighting Market is expected to register a CAGR of 11.9% during the forecast period. The ongoing COVID-19 pandemic has had a significant impact on the market. The COVID-19 impact is primarily observed at the first or starting node of the market value chain, i.e., the manufacturers of lighting products. The sales of both LED electronics and lights were impacted significantly. According to ELCOMA, around 30% of the components, namely electronic drivers, including chips used in manufacturing LED bulbs in India, are imported from Chinese vendors. The LED lighting industry has witnessed a short supply owing to the pandemic. Many lighting events were canceled and postponed across the globe due to the COVID-19 outbreak.

Key Highlights

• Due to various supporting factors, conventional light bulbs in India are easily replaced by LED lights. Furthermore, as LEDs are progressively used in automotive headlamps, aviation, general lighting, advertising, lighted wallpapers, medical devices, camera flashes, and traffic signals, the LED lighting market is expanding throughout the country. In addition, the entry of Chinese LED light producers in India has enabled Indian manufacturers to offer innovative products.
• More than half of India's population resides in urban cities, and the ratio continuously increases with each passing year. Moreover, this rate is even higher in highly dense cities such as Delhi, Mumbai, and Kolkata. Rapid urbanization has resulted in significant infrastructure development, including the construction of highways for connecting cities, commercial malls, and airports, over the past few years. Hence, the demand for outdoor LED lighting is increasing.
• 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, substituting old lighting systems with LED lighting has been observed to be beneficial. Due to this, the demand for new installations of the outdoor LED lighting is significantly increasing.
• Some of public places, such as commercial buildings, including malls, stores, restaurants, hospitals, and schools, account for a significant amount of total energy consumption, and the considerable energy consumption is attributed to lighting. It is evident that these facilities would be aiming to reduce their operating costs. The government push has driven domestic manufacturing companies to target new opportunities in the market.
• Also, parking lots in commercial buildings in India often get packed with vehicles during peak hours. A poorly lit parking lot can result in thieves and burglars unethically breaking into the vehicles. Since LED lights provide brighter and better illumination than conventional lighting solutions, they light up the entire space uniformly to ensure safety at all times.
• Further, in August 2021, Signify expanded its Philips Smart Wi-Fi ecosystem in India by launching new products under its Wiz smart light range. In addition to the Wiz smart bulb, the portfolio now includes a new smart LED downlighter, T-Bulb, T-Beamer, and Batten.

Key Market TrendsLED is Expected to Hold a Significant Market Share

• Governments and enterprises across the country are seeking numerous solutions for reducing energy consumption and running costs for lighting solutions. LED lighting solutions are technically developed and efficient in energy consumption and luminous intensity compared to their counterparts, such as incandescent lamps.
• Moreover, the LED market in India is price-driven. The low-wattage LED lights are poised to grow because the price compared to the low-wattage LED lights are cheap compared to the high wattage LED Lights. At the end of the first wave of the pandemic, Amazon Business announced a host of exclusive deals for business buyers as part of the ‘Great Indian Festival.’ It provided bulk discounts, exclusive deals, lower festive price offers, GST invoice for the input tax credit for multiple products, including LED lighting solutions below 80W such as Philips 20W Smart LED Flood Light at INR 902, Wipro Garnet 30W LED Floodlight at INR 1389, Philips 61013 Air 5W LED Desklight at INR 899, etc.
• India is witnessing significant launches of smart LED bulbs below 80W. For instance, Panasonic launched a Wi-Fi-enabled Smart LED Bulb that comes with automated scheduling functions and multi-color lighting options. The Panasonic Smart Wi-Fi LED Bulb has an output of 9 watts. It offers almost 16 million shades, giving users a wide range of options. The bulb has an advanced feature that allows users to auto-schedule the switching on and off lights. The lighting settings could also be adjusted to suit different occasions.
• In January 2021, Signify expanded its Philips Hue portfolio with two outdoor lights to personalize gardens and porches, a new wall switch module, and a redesigned Philips Hue dimmer switch. The two new outdoor LEDs include Philips Hue Amarant linear spotlight and Philips Hue Appear outdoor wall light.
• Further, in January 2021, Panasonic Life Solutions (PLS) India launched the Smart Wi-Fi LED Bulb. The Smart Wi-Fi LED Bulb's core benefits include the multi-color lighting option and automated scheduling functions that permit the user to alter the look, mood, and feel of the room at their fingertips.

Commercial is Expected to Hold a Significant Market Share

• The growth of new installations is driven by demand from commercial sectors and new infrastructure development in the country. Consumers from this category are interested in developing and installing a smart lighting system that would help them reduce overall electricity costs in the long run. Smart outdoor lighting is applied in numerous domains, ranging from airports and institutions to smart city lighting systems, bridges, and buildings.
• In May 2022, the lighting company, Signify, launched a new campaign for its EcoLink range of LED lights for the commercial sector, including airport and office buildings in the country.
• Several companies in the market are launching products based on different themes of movie characters for commercial infrastructure. For instance, in September 2021, Polycab India Limited (PIL) came up with a unique first-of-its-kind LOVE at the FIRST LIGHT campaign to boost the marketing needs of their new products. Polycab India offers competitive prices, versatile LED Light Bulbs, LED batten, panels, and spotlights for commercial workplaces.
• According to Dolat Capital, in the financial year 2021, INR 2.2 trillion was invested in the construction and maintenance of roads. Another INR 1,01 trillion was invested in real estate. These government investments in various commercial sectors further drive the studied segment of the market.
• Furthermore, the country is investing in sustainable and environmentally friendly lighting. This is bound to increase the demand for new outdoor LEDs in upcoming infrastructure projects. For instance, the Airports Authority of India (AAI) announced that it would install new ultraviolet germicidal irradiation (UGVI) lamps in the air conditioning at Chennai Airport. The lamps installed in the terminals and buildings will ensure the air circulated is free of bacteria and microorganisms.

Competitive Landscape

The India Lighting Market is highly competitive owing to the presence of many large and regional players in the market. The market players are adopting strategies like product innovation, partnerships, mergers, and acquisitions to extend their geographic reach and stay ahead of the competitors. Some of the major players in the market are Signify N.V., Havells India Limited, SYSKA, Wipro Ltd., and Bajaj Electricals Ltd, among others.

• June 2022 - HELLA launched Energy-Efficient Work Lamps And Floodlights in India. HELLA’s work lamps and floodlights are used wherever ideal illumination of the work area is required to increase worker safety.
• January 2021 - Osram announced its chip-scale package LED enables efficient and cost-saving luminaires for outdoor lighting. The company’s compact high-power LED Osconiq C 2424 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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• The market estimate (ME) sheet in Excel format
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