Spark Optoelectronics: Deep Analysis for Global LED Lighting Export Market

SHENZHEN, China - Dec. 9, 2014 - PRLog -- At present, China has become the global production base of LED lighting products. In 2003, the export value of LED lighting (http://www.spark-oe.com/) products in China is 6 billion dollars. There’re about 7,000 LED lighting enterprises in China and the export value of LED lighting products is up to 7 billion dollars in the first three quarters 2014.

With more and more fierce competition between LED enterprises in China, many of them are seeking and developing overseas LED markets.

1.Euro-market
In the beginning of 2013, with the situation that EU-economy gradually bottomed out, export amount of LED lighting products started to explosively grow and speed up to 100%.

According to the statistic data from EU, in Europe, about 8 billion bulb lights are being gradually replaced and about 90 million traditional street lamps need to be replaced. With the two project plans “SSL-erate and Lighting for people” in 2013, Europe has become the potential export market of LED lighting products from China.

In first half of 2014, about 18 thousand LED enterprises (http://www.spark-oe.com/) from China export to Euro-market and the export proportion of self-owned brands is gradually beginning to rise.

2.Middle-east market
After suffering the crisis of the real estate bubble for several years, construction industrial in the GCC countries, including UAE eventually got out of trouble and at present has entered to the class of full recovery. UAE and Saudi Arabia have large LED lighting markets and in 2013 the combined market shares in the two countries are 70% (2.5 billion dollars) of the whole market of GCC countries. Nowadays, with fast development trend in building industrial, the market requirement of LED lighting products in this region will increase 8%-10% more or less each year in the following 2014-2018.

Recently, the UAE Bureau of national quality standard published the new standard of indoor lighting, including “forbid importing incandescent light, use energy saving light, LED light and iodine-tungsten filament lamp”.

Compared to the European and American market, the Middle-east market is sensitive to price and the products with better cost performance will be popular in the region.

3.Indian market
As we know, India is the second largest country in the population and it has very large potential LED market. At present, there’re about 300 million people in this country who can’t use the electric. Due to lack of India local core technology, main LED lamps and lanterns rely on importing from other countries, mainly China. And the LED light price is quite expensive compared with the traditional luminaries. Thus the application of LED light in India mainly is outdoor lighting. With the economy development and advancement of electric coverage and supply in India, civil market requirement of LED lights (http://www.spark-oe.com/) will extremely increase.

Because of poor infrastructure and low urbanization degree in India, the electricity consumption of lighting is only 20% more or less of the total country’s electricity consumption. Meanwhile, almost 80% of lighting products in India are imported from China because of low level of manufacturing.

In 2015 China’s LED products export value in India will be up to 470 million dollars, which LED street lights will be 60% of the total export value.

At present, many LED enterprises from China are actively grabbing this new market.

4.African market
In Africa, about 90% of rural people can’t have the power supply and the streets of many cities almost have no street lights. Africa market is still in the low-end application of lighting market. So the product property isn’t too important in this country and the LED products that basically are cheap, reliable, durable and easy to operate, also have lighting function will meet the market demand. In a word, basic and municipal lighting market in Africa is the most potential market, urgently in need of exploiting.

5.Russian market
After Russia joined in WTO in 2011, the overall customs duties in Russia reduced to 7.8% from original 10% so that it’s more unblocked to get in Russian market for China’s LED enterprises.

The growth rate of LED lighting market in Russia can reach to 28%-48% each year and at present the market’s potential is up to 700 million dollars. There will be 110 billion LED lights to use if replacing all the light source in Russia, and over half of the LED lights will be applied to commercial and civil fields. In 2013 China’s export value of LED lighting products is 227 million dollars in Russia, increasing 260% year-on-year, and in first half of 2014 the export value is 327 million dollars, growing 571% year-on-year. Now Russia has become the second largest market which China export LED lighting products to. And the value proportion is about 9% of total export value of LED lighting products.

Due to few local LED enterprises and large enterprises, and the policy that all the incandescent lights will be forbidden in Russia this year which Russia government enacted, more and more LED enterprises from China and other countries start to get in this market.

6.American market
The export volume is very large and grows fast in the LED luminaires market of America, which makes America the first largest country that imports LED luminaires. Because of the competition between too many LED light enterprises in China, though the export volume progressively increases yearly the price of luminaire is gradually declining yearly.

At present, OEM mode is the main way to export LED luminaires to America. Due to few self-owned brands and many middle and small-sized enterprises, the export orders are very small and sporadic. But some large LED luminaires enterprises are more and more occupying America market. For example, Shenzhen Spark Optoelectronics (http://www.spark-oe.com/) S&T CO.,LTD has export a big mass of LED luminaires to America and other countries since it was established in 2000.

It’s believed that America market will be wider and larger in the future.

7. Central and South American market
With the good policy of the government of Brazil and Mexico, economic restructuring and the stable LED light requirements, the LED luminaires market in these two countries, including other central and South American countries, will be larger and larger.

In Brazil, the market size of LED lighting industrials had increased to 2300 million dollars in 2011, and it’s estimated that in the following 5 years, the market size will reached to 4720 million dollars in 2016. Also, the Mexican ministry of Energy has published the prohibition that the incandescent light bulbs will be forbidden to sell from December 31th, 2014.