Tuesday, November 05, 2013: Philips Lighting India is happy with the fall in the prices of LED lights as they feel it will fuel market growth for household replacement.
As of now, the replacement market is pretty negligible but industry experts feel that is has immense potential, given the huge number of households in the country.
Data from Frost and Sullivan suggests that LED lighting market is growing at a rate of 45 per cent in the past few years in India. Estimated to be a $150 million market in 2011, it is expected to grow to $450 million by 2015.
“The prices of LED lights have been coming down every passing year. Two years before, the price of LED lights were six to seven times more than compact fluorescent lamps. Today it has come down to three times that of CFL. We hope the prices will further come down and make it more affordable. CFL is currently the largest segment in lighting,” said Sumit Joshi, head, marketing, Philips Lighting India told mydigitalfc.
On a global level, LED contributes 25 per cent to the revenues of Philips and this has grown from a single digit percentage two years back. By 2016, Philips estimates LED share to go up to 45 per cent, the report added.
Philips has witnessed a growth for sure. While the adoption of LED by new houses is higher, the replacement demand in the home segment is very small.
“The replacement market in the home segment would be around four to five per cent. But the potential is huge considering the number of households in the country. We have been growing by 100 per cent in this segment,” he said.
Reportedly, the lighting division of Philips India accounts for more than 50 per cent of the company’s turnover.
Joshi also said that the leading industry players and the industry body has been trying to persuade government to set standards for the fast-growing LED market and check dumping of cheaper Chinese products.
