China being the most populated nation of the globe opens up multiple business opportunity within regular time intervals. It is the leader manufacturer of various products which it supplies to other countries, there is no doubt that it is in the path of becoming a superpower soon leaving behind the current global powerful nations. Likewise, china is gearing up in producing the some best lighting technologies utilized globally-LCD being the latest of them all. The real estate and infrastructural developments in the region makes it is evident that the lighting industry especially the LED segment.
The LED lighting industry is forecasted to rise up to the value of $7.4 billion by the end of 2017. This is projected to be double the current market value (around $3.1 billion) for the segment. National policies regarding energy savings, efforts undertaken by the governing authorities and the upright cycle of decrease in prices are stated as major factors for the trend in the lighting industry of China. LED lighting technology seems to get a warm welcome from both residential and commercial circuits providing a CAGR of around 24%. This segment is sure to leave behind the boarder lighting option as it is expected to have a CAGR of 5.6% in comparison.
LED light business set to glow further:
Thus, the LED lighting sector is estimated to grow to 18% market share from the present 9.6%. According to the market research report gathered from the industry, the segment of LED lighting option has transferred from an attractive, expensive to a value added-need of the hour solution to save money and bring in sustainable growth.
The end product market for Chinese LED industry is likely to have around 5,000 players by the end of 2017 wherein the top 10 and top 50 suppliers will account to a share of 10% and 33% respectively. This trend is enough to indicate the vastness of the industry. There is a stiff competition which is needless to mention and suppliers providing poor quality products are straight away shown the door to elimination.
Residential scores better than commercial sales:
The industry is segmented into residential and commercial users and the first category accounts to maximum growth of the industry. The residential LED lighting sales will rise to $310 million by 2017 from $23 million in 2013; this growth trend is forecasted to be the fastest in the world as there is a 92% increase in the market rise in respect to CAGR. This pattern is also seen as the prices decline at a brisk pace from $6.02 per fixture in 2013 to $3.13 projected by 2017.