SINGAPORE, July 31, 2019 /CNW/ -- With growing LED adoption and increasing use of smart solutions, the lighting industry is going through an enormous transformation. This is driving a paradigm shift to the entire lighting industry dynamics, directly impacting the competitive landscape, distribution channels, product offerings, and business models.
Strong decline in LED prices along with favorable government mandates are expected to drive the LED market in Asia Pacific from US$28.54 billion in 2018 towards US$38.72 billion by 2023. From quitting the traditional lamp business, to pulling out from certain geographies, stakeholders in the lighting industry are fighting hard to combat the pace at which the market has been transforming.
"The advent of Internet of Things (IoT) and Lighting-as-a-Service (LaaS) have created a rising need for partnerships, which will allow manufacturers to provide a complete IoT lighting solution portfolio," said Viswesh Vancheeshwar, Industry Analyst, Energy & Environment, Asia Pacific at Frost & Sullivan.
"As lighting moves from a product-based market to a service- and data-based market, stakeholders will partner or collaborate with control manufacturers to offer a more personalized lighting experience," he noted.
Frost & Sullivan's recent analysis, Transformation of the Lighting Market in Asia-Pacific, 2019, studies the impact of social and demographic trends, industry Mega Trends, disruptive technologies, and new business models, across the lighting market value chain. While the market continues to evolve, it also presents several significant growth opportunities for companies that are open to tapping this transformation. This research identifies 14 growth opportunities, and highlights vision and strategy, as well as brand and demand growth opportunities. For each of these levers, key context and opportunities along with a call to action are discussed to underscore what lighting manufacturers could do to stay ahead in this rapidly changing and competitive market.
The applications covered include architectural (decorative lighting), hospitality (hotels, restaurants, casinos), industrial (manufacturing plants, warehouses), office and education, outdoor (streets, roads, infrastructure), residential, retail (shop lighting), and healthcare (hospitals, clinics, and laboratories).
For further information on this analysis, please visit: http://frost.ly/3nf
"While residential applications have dominated revenue shares so far, industrial and hospitality applications will grow the fastest during the forecast period," noted Vancheeshwar.
"Traditional OEM business models based on channel dominance and replacement sales will eventually give way to a prosumer-based lighting market. Consequently, lighting companies will transition to a consultative business model, driving the evolution towards more circular, service-based business models.
"While lighting systems may be customized to cater to various customer segments, different strategies and approaches will be required for the high and low ends of a single consumer segment itself. The key to success lies in matching the right strategy to a certain market segment", he added.
For additional growth opportunities, manufacturers are likely to:
- Shift from traditional fixtures to integrated luminaires, as LED-integrated fixtures are forecast to outpace the growth of regular LED fixtures.
- Provide Light Fidelity (LiFi)-enabled lights so conventional lighting companies can reinvent themselves.
- Reduce packaging weight and volume and increase recycled content.
- Embrace 3D printing, as it enables new levels of customization, and helps in designing luminaries that use the light beam and energy in the most optimum way for the target applications.
- Use Augmented/Virtual Reality (AR/VR) to give customers a thorough visual experience.
- Design human-centric lighting to tap immediate opportunities from the commercial and high-end residential building segments.
Transformation of the Lighting Market in Asia-Pacific, 2019 is part of Frost & Sullivan's global Homes & Buildings Growth Partnership Service program.
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Transformation of the Lighting Market in Asia-Pacific, 2019
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SOURCE Frost & Sullivan