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

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  • 152 Pages
  • January 2022
  • Region: India
  • Mordor Intelligence
  • ID: 5529891

The Indian outdoor LED lighting market was valued at USD 63.92 million in 2020, and it is expected to reach a value of USD 198.25 million by 2026, registering a CAGR of 19.59% over the forecast period (2021-2026).

The impact of COVID-19 is mainly observed at the first node of the market's value chain, i.e., the manufacturers of lighting products. The sales of both LED electronics and lamps were impacted significantly. According to ELCOMA, around 30% of the components, namely electronic drivers, including chips used in the manufacturing of LED bulbs in India, are imported from Chinese vendors. The LED lighting industry has witnessed shortages in supply due to the pandemic.

Key Highlights

  • The penetration of LED for outdoor applications in India has been increasing over the last few years. According to Goldman Sachs's estimates, the LED penetration rate in the lighting market had crossed 60% by 2020. Further, the government initiatives aimed at structuring regulations for encouraging LED adoption are fueling the market's growth. The Indian government aims to replace 14 million streetlights across the country with intelligent lighting control systems.
  • The zero-subsidy LED initiatives by the Government of India are the Street Lighting National Programme (SLNP) and the Unnat Jyoti by Affordable LEDs for All (UJALA) scheme. These schemes completed five years of implementation in 2020.
  • Also, the initiatives undertaken by few states of India to utilize LED lights in government schools are driving the market positively. For instance, the education department of Punjab has issued orders for government schools to deploy only LED lights/bulbs to be fitted in the school premises. The government of Punjab is expected to install LED lights in government buildings and target a 50-90% reduction in energy consumption.
  • There are various smart city initiatives being undertaken in the country. Smart street lighting is perceived as an ideal starting point that provides energy savings and operational savings. For instance, in July 2020, the Jammu and Kashmir (India) administration took the initiative to install LED streetlights in Srinagar under the Smart City mission.
  • Additionally, the country is expected to observe a reduction of about 15-32% of its energy usage by 2025 due to the deployment of LED lighting systems. The replacement of antiquated process equipment, among other devices, is expected to deive energy cost reductions further.

Key Market Trends

Highways and Roadways Expected to Witness Increased Application

  • Several government policies are driving the adoption of LED lighting in the highway and roadway infrastructure of India. Under the SLNP program, more than 1.03 crore smart LED streetlights had been installed till the beginning of 2020, enabling an estimated energy savings of 6.97 billion kWh per year, with an avoided peak demand of 1,161 MW and an expected greenhouse gas (GHG) emission reduction of 4.80 million tons of CO2 annually.
  • The functioning of Gram Panchayats (GPs) has a direct impact on the everyday lives of millions of rural people. Hence, GPs play a vital role in inclusive development and strengthening democracy through participatory governance. The estimated number of streetlights in the GPs of India is around 3.08 crores. Retrofitting these conventional streetlights to LED streetlights may enable energy savings of approximately 3,420 million kWh & CO2 emission reduction of approximately 29 lakh metric ton.
  • Further, in October 2020, the Bruhat Bengaluru Mahanagara Palike (BBMP) received the silver award for energy-efficient streetlighting in Bengaluru under the best public-private partnership category. It is a 30-month project, during which private firms and the BBMP would change streetlights to LED lights. So far, almost more than 1 lakh streetlights have been converted to LED lights. Every six months, one lakh streetlights would be replaced with LED lights. The companies are investing Rs 1,100 crore in the project.
  • Bharatmala Pariyojna was India's biggest infrastructure investment program, with an estimated investment of USD 113 billion. This project was designed to develop the national highway network of India, which would carry around 70% of the freight volume and connect more than 500 districts.

Public Places to Significantly Drive Market Growth

  • The real estate sector in India is expected to reach a market size of USD 1 trillion by 2030, as per a study. It is also expected to contribute nearly 13% to the gross domestic product (GDP) of the country. Commercial sectors are anticipated to comprise a huge chunk of the market occupied by the real estate sector in India by 2030. (Source: IBEF). Such factors may lead to an increased demand for the market.
  • Commercial buildings, including malls, stores, restaurants, hospitals, and schools, account for a significant amount of the total energy consumption, and a considerable share of this energy consumption is attributed to lighting. Moreover, malls and showrooms consider lighting to be necessary to make products attractive, thereby attracting customers and trigger their intent to purchase.
  • Generally, airport perimeters cover massive areas, and the usage of LED lighting provide better illumination and cost savings. In January 2019, the Airport Authority of India announced a tender for modifying the existing perimeter lighting system, as per the Bureau of Civil Aviation Security's (BCAS's) directive at Chennai Airport. This required the supply of LED light fixtures. The estimated cost is expected to be INR 1.9 million.
  • Also, sports stadiums in India still do not utilize LED lighting systems. For instance, in January 2021, the Karnataka State Cricket Association (KSCA) announced to install a new floodlight structure at an estimated cost of INR 4.5 crore at the M. Chinnaswamy stadium. The association is waiting to replace metal-halide lamps with LED fixtures when the cost reduces significantly and the weight for each fixture reduces to below 28 kg.

Competitive Landscape

The Indian outdoor LED market is fragmented, due to the presence of several global market players. With the market gaining stimulus recently, many companies have a lot of untapped potential, which they can use in expanding their production and product ranges. Owing to this, in 2020, several players, like Orient Electric Limited, launched new lighting series with increased functionalities, and greater flexibility and resolution in outdoor applications.

  • In October 2020, to cater to the growing demand from smart homes and automation projects, Panasonic Life Solutions (PLS) launched its Smart Wi-Fi LED Bulb in India. This device has a multi-color option offering nearly 16 million shades. The user can modify the lighting settings to complement the room's design or cater to occasions such as dinners, parties, etc. The new Smart Wi-Fi LED Bulb can be commanded through the Panasonic Smart Wi-Fi application.
  • In April 2020, Dialight PLC's SafeSite Glass Reinforced Polyester (GRP) linear light was certified for use in ATEX Zone I Hazardous Areas. The certification opens the market for the harshest environments, and specifically, as the ideal solution for long-life performance in the upstream and downstream oil and gas, petrochemical, chemical processing, mining, and heavy manufacturing sectors.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Impact of COVID-19 on the Outdoor LED Lighting Industry
5.1 Market Drivers
5.1.1 Favorable Government Regulations
5.1.2 Increase in Need for Energy-efficient Lighting Systems
5.2 Market Restraints
5.2.1 High Initial Investment
5.3 Analysis of Electricity-saving Potential of Public Lighting in India
6.1 By Wattage
6.1.1 Below 80W
6.1.2 80W and Above
6.2 By Application
6.2.1 Highways and Roadways
6.2.2 Public Places (Commercial, Airport Perimeters, Parking Areas, Stadiums, etc.)
6.2.3 Architecture
6.2.4 Other Applications
6.3 By Distribution Channel
6.3.1 Direct Sales
6.3.2 Wholesale/Retail
6.4 By Installation Type
6.4.1 New Installation
6.4.2 Retrofit Installation
7.1 Vendor Ranking Analysis
7.2 Company Profiles
7.2.1 Signify Holding
7.2.2 CG Power and Industrial Solutions Ltd
7.2.3 Osram India Private Limited
7.2.4 Bajaj Electrical Ltd
7.2.5 Eveready Industries India Limited
7.2.6 Dialight Corporation
7.2.7 Syska Led Lights Private Limited
7.2.8 Wipro Lighting Limited
7.2.9 Orient Electric Limited
7.2.10 Surya Roshni Ltd
7.2.11 Panasonic Life Solutions India Pvt. Ltd
7.2.12 Havells India Ltd
7.2.13 Halonix Technologies Private Limited
7.2.14 Abby Lighting & Switchgear Ltd