Industry experts predict that LED lighting will be the next wave of innovation in lighting and India will be no exception to this development. LED technology is more efficient in terms of energy use and performance. A closer look though, reveals that while the adoption of LED technology may be set for rapid growth overall, differences will arise on the level of penetration by geography.
North and west are the biggest markets
Currently the biggest lighting markets are the north and west regions in India, largely due to the levels of industrialization in these regions. Metros represent the largest share and will continue to be the biggest slice of the pie, even in case of LEDs. The south and east are comparatively smaller markets.
South will see high growth over the medium term
North and west will continue to dominate the market as the leading geographical segments for LED growth. East will remain a small market. But the market that will see major growth in the coming 3-5 years will be the south. The south is likely to gain an equal amount of market share as the west and north, if not more. On the basis of upcoming projects, (in the retail, commercial and industrial space) in the next 3-5 years, I believe south could be the most exciting market for LED manufacturers. The region is expecting almost 1,400 projects with investment in each project ranging between INR 300 crores to INR 9,000 crores.The growth will be led by the bigger cities like Chennai, Bangalore and Hyderabad etc.
What will drive the growth of LEDs?
- The growth of the industrial and commercial sectors which will be rapid in the south
- The active promotion of LED by the government which is launching various street lighting projects and railways lighting projects and is increasing awareness levels through programs and conclaves
- Companies are quickly recognizing the potential growth of LED and adapting their technology to meet the need
However, one major factor peculiar to the south is the psychological inclination for quality over price, a factor that will be very important in determining the growth of LED. This coupled with the improving voltage conditions in the region will definitely lead to it capturing a major share of the growth.
Where to from here?
It looks like LEDs are here to stay. Except for the underdeveloped eastern regions, the entire Indian market will quickly adopt this technology. The south represents the most potential since it is still an untapped market as compared to the more saturated north and west regions. The capture of the market by LED is only a matter of time, and the south looks set. And to any naysayers, who might think otherwise - yenna rascala, mind it..!