The First LED Lamps were introduced in the late 1990s in the market. From then on there has been a steady decline in the unit costs by double-digit percentages, becoming viable for commercial, industrial, and outdoor lighting applications. As per a survey conducted by “Green Market Research”, it was calculated that by 2012, the global LED lighting market was 16 Billion and by 2014 it reached 40 Billion.
The LED lighting market has got a huge application-based market. It has got huge attraction from retail accent lighting and cold storage followed by street, highway, parking lot and public structure illumination, and niche applications in commercial building lighting.
According to Frost & Sullivan, a well-known market research firm (January 2014) stated that in the coming years the LED market is expecting a huge increase, with Germany being titled as one of the “global growth hot spots”. In Europe, Germany is position first ahead of UK, France, and Italy in the energy-efficient lighting industry.
The estimated turnover for the German LED Lamps is growing by 27 percent per annum. Around 50% of the electrical consumption in German cities has been reduced by the use of LED Lighting.
One of the major reasons for the high demand for the LED lighting technology market is the customer’s push to save energy costs and increase energy efficiency. Due to the high energy prices the consumers, public investors, and architects are forced to consider energy-saving solutions, and thus due to steady growth, Germany remains the lead LED lighting market in Europe.
Due to the advancement of LED lighting technology it has been expected that the LED lighting share in the global market to reach 80 percent by 2020. Due to ongoing R&D and scaled economies, the lighting technology keeps improving, which increases lamp efficiency and reduces the product prices and thereby enhancing consumer attractiveness.
If the key market trends are looked around then according to a leading market research company, Frost and Sullivan, the country is expanding in the leading LED market sector. In the LED installation, there is a huge foreign investment has been called up in Germany.
Solid-State Lighting companies are in a well-advanced position for future growth within the lighting industry. Jonathan Schoo, an expert in electronics and micro-technology at Germany Trade & Invest in Berlin stated that “The energy revolution in Germany is enabling many infrastructural upgrades. Several German cities have already begun testing LEDs in street lamps and in buildings”.
He further added that “The German automobile industry is also exploring the advantages of LEDs, which could draw invaluable investments. Germany provides an excellent infrastructure and a skilled workforce for international companies interested in taking advantage of the recent energy shift in the country. German Trade and Analysis Invest are working with more and more SMEs from abroad, establishing German subsidiaries in order to manufacture or assemble their LED products with German engineering and technical staff”.
The domestic lighting, as well as the streets for the period from 2008-2018, are undergoing the same changes, projecting a growth rate of around 27%. In Europe, as per a recent report, the LED market share is currently estimated to be around 7 percent with a market size of around 1 billion EUR. The situation of the market is similar to North America.
In Europe, the current application of the LED light market is in architectural lighting as Europe has to decorate its buildings with colorful exterior lighting. European are very light quality conscious, which could be a potential barrier. It is expected that by 2016, the LED market share in Europe is going to rise above 45 percent and by 2020 it is going to be over 70 percent.
By 2013, with 39 new projects, Germany is still the No.1 destination for investments in the electronics industry within the European Union. In the electronic industry, a total of 288 new investment projects were recorded between 2009 and 2013 making Germany the third most attractive electronics FDI destination worldwide after China and the USA.
The majority of these projects came from China, the USA, and Japan followed by Switzerland and the UK. Sixteen percent of all FDI projects within the last five years were established at a manufacturing site in Germany.
Source:- Frost & Sullivan