Commercial Lighting Penetration Rate Could Reach 23% in 2014, says TrendForce

Global LED commercial lighting market penetration rate this year soared, with growth projected to reach 23% by the end of the 2014, according to the latest “2Q14 Silver Member- Commercial Lighting Market” by LEDinside a research division of TrendForce.   

Main lighting products in commercial lighting application include LED tubes, spotlights, and bulbs. Europe, North America, and China are the biggest players in this sector and are anticipated to become major markets within the next five years. LED tube market demand was US $2.58 billion in 2013 and will increase substantially to US $8.87 billion by 2018, said LEDinside Associate Manager Joanne Wu. LED tubes have become prominent in the commercial lighting sector, especially in supermarket, office, and underground parking lot where LEDs have been applied extensively. In addition to rapid improvements in design, LED tubes strength in cost/performance (C/P) is also increasing faster compared to other luminaires. 

“T8 tubes have been the main product in many regional markets, due to their use in office lighting applications”, said Wu. The European, American, Japanese, and Chinese market mainly uses cool white tubes. The Chinese LED tube market in particular mostly uses cool white color temperature of 6,500K with a lifespan of only 25,000 hours.

In regards to commercial lighting market strategy, one of the most basic development strategies for European, U.S., and Japanese manufacturers is improving product quality, which includes boosting luminous efficacy, lifespan, and light quality. Luminous efficiency, lighting uniformity, color rendering, and lifespan are still considered key technologies.

In another aspect, Chinese manufacturers strategies are more dispersed. Due to the Chinese lighting market still maintain high growth rates, there is no definite success model. However, overall distribution channel advantages are still their biggest weapon. Price competitions have been ignited by physical hardware channels and even e-commerce channels. Therefore, there is further need to deploy supply chain and resource integration to better manage costs and acquire cost competitive advantages.