LED lighting overseas market prospects can be expected

With the development of the LED industry becoming more and more mature, the domestic market is gradually becoming saturated, and more and more Chinese LED companies are beginning to turn their attention to the vast overseas market, showing a trend of collective sea. Obviously, major lighting brands will have fierce and lasting competition to improve product coverage and market share. So, which regions will be potential markets that cannot be missed?

1. Europe: high awareness of energy conservation

From September 1, 2018, the ban on halogen lamps will be fully effective in EU countries. The phasing out of traditional lighting products will accelerate the development of LED lighting penetration. According to the report of the Prospective Industry Research Institute, the scale of the LED lighting market in Europe continues to grow, reaching US$14.53 billion in 2018, with a year-on-year growth rate of 8.7% and a penetration rate of over 50%. Among them, the growth kinetic energy of spotlights, filament lamps and decorative lamps used for commercial lighting is particularly remarkable.

2. United States: High-speed growth of indoor lighting products

According to CSA Research data, China exported US$4.065 billion of LED products to the United States in 2018, accounting for 27.22% of China's LED export market, and an increase of 8.31% compared with the US LED product exports in 2017. Except for 27.71% of the unspecified category information, the top 5 product categories exported to the United States are bulbs, tube lamps, decorative lamps, floodlights and light bars, mainly for indoor lighting products.

3. Thailand: high price sensitivity

Southeast Asia is an important market for LED lighting. With the rapid economic growth in recent years, the increase in investment in infrastructure construction in various countries, coupled with the demographic dividend, has led to an increase in lighting demand. According to data from the Institute of Research, Thailand's lighting market in Southeast Asia occupies an important position, accounting for about 12% of the overall lighting market. The market size is close to 800 million US dollars, and the compound annual growth rate is expected to be close to 30% between 2015 and 2020. At present, there are rare LED manufacturers in Thailand. LED lighting products mainly rely on foreign imports, accounting for about 80% of market demand. Due to the establishment of China-ASEAN Free Trade Zone, LED lighting products from China can enjoy zero tariffs, plus China. The manufacture of low-cost and high-quality features, so China's products in the Thai market share is extremely high.

4. Middle East: Infrastructure construction drives lighting demand

With the rapid economic development and rapid population growth in the Gulf region, the investment in infrastructure in the Middle East has been increasing. At the same time, the wave of energy conservation and emission reduction that has emerged in recent years has also promoted the vigorous development of the power, lighting and new energy markets. Therefore, it is getting more and more attention from Chinese LED companies. Saudi Arabia, Iran, Turkey and other countries are important export markets for LED lighting products in the Middle East.

5. Africa: Basic lighting and municipal lighting have potential for development

Due to the tight supply of electricity, the African government has vigorously promoted the replacement of incandescent lamps with LED lights, and introduced LED lighting projects to promote the growth of the lighting products market. The “Lighting Africa” project initiated by the World Bank and international financial organizations has also become a force to be reckoned with. There are few LED lighting companies in Africa, and their LED lighting products cannot compete with Chinese companies.

Concluding remarks: Those who do not seek the overall situation are not able to seek a city; those who do not seek the world are not able to make a fuss. LED lighting products as the key promotion products of energy-saving lighting in the world, the market penetration rate will continue to rise. In the process of LED companies going out, they need to continuously improve their comprehensive competitiveness, adhere to technological innovation, strengthen brand building, diversify marketing channels, adopt international brand strategy, and gain a foothold in the international market through long-term competition.