Smart Lighting Opens Up Possibilities For The LED Industry
Feb 21, 2023
Looking at the current lighting market, smart lighting has become a new product that manufacturers such as Philips are rushing to release. This is not only a hot topic at the German Lighting Fair but also a hot topic at the Guangzhou International Lighting Fair earlier this month. The smart lighting market is still in the Early stage of development, but manufacturers are eager to expand. The market is expected to enter a period of rapid growth within one to two years.
High value-added
Intelligent lighting is a combination of electronics and networking. It can not only realize intelligent lighting system control, automatic adjustment, and mood lighting but also can be connected to the Internet platform. This creates higher value-added services for users, including health regulators, Location trackers, shopping recommendations, and advertising, among others.
The lighting industry is clearly heading for a major shift. Smart lighting is part of smart building technology. It requires collaboration across the supply chain to develop.
Open up room for growth
Regarding the continued growth of the LED industry, market disputes stem from the following aspects:
1) How long can the fast-growing modification market support the industry?
2) How long is the lifespan of LED lamps?
3) What will be the next growth driver for the industry after the refitting wave is over?
Regarding the first question, statistics collected by the U.S. Department of Energy (DOE) indicate that the penetration rate of LED lighting has not yet reached 5 percent in 2013. If the penetration rate can double this year, the retrofit demand will continue for another three to four years. As for the life of LED lighting, this is not the most important factor considered by manufacturers during the rapid development period of LED lighting. Instead, manufacturers focus on reducing costs before meeting the lifetime standard (20,000-30,000 hours). In addition, after the industry matures, manufacturing Manufacturers are pushing to launch products with optimal longevity.
In addition, LED smart lighting can increase ASP and product-added value. It increases the development space far beyond traditional lighting, which means that the industry will continue to grow after the retrofit period.
In China, the electricity cost of LED drivers with intelligent control functions is about RMB 10. The retail price of aluminum oxide with such power supplies is 20 to 30 percent more expensive than ordinary luminaires. Intelligent functions, therefore, can increase a normal The premium of lighting products is at least 20 percent (this is not taking into account additional complex systems and higher configurations).
Regardless of high value-added products, the smart lighting industry has market space plus RMB 60 billion from 2014-2015. The smart lighting market value may reach RMB 80 billion by 2018, and exceed RMB 200 billion within five years based on a CAGR (Compound Annual Growth Rate) 30 percent calculation.
