An in-depth discussion on the market opportunities for lighting industry
Lighting will play an important role in the development of smart cities of the future as it encompasses every area of an individual’s life–home, work, on the road and in public places. Moving ahead of its functional role of illumination, connected LED lighting has the latent to improve quality of life, transform everyday experiences and services, and ensure sustainability in our ever increasing global cities. Urban populations are growing swiftly and 60 per cent of the world populations are predicted to be living in cities by 2030 with more than 70 billion light points.
Market for lighting industry in India
Anil Bhasin, Executive Vice President, Havells India Limited says, “India’s lighting market is estimated to be Rs 9,000 crore and growing at around 13 per cent every year. The lighting sector is expected to witness exponential growth in coming years due to the augmentation in infrastructure development such as roads, offices, real estate, commercialisation, increasing disposable income and growing preference of people towards energy efficient and innovative lighting solutions. Also, because of the growing awareness for environment friendly products, the lighting market is poised for an exciting journey. Adding to the growth would be government’s flagship programs such as rural electrification and ‘Power For All’ along with the investment to be made in the ‘Smart Cities’ program.”
Anil adds, “Another reason of rapid growth of lighting sector is the govt’s drive in implementing LED lighting across the nation which will help the LED lighting industry to grow in a good pace.”
Tushar Gupta, Executive Director, NTL Lemnis says, “The government has also a very strong focus on energy saving programs. The Government has set up a target to replace the 77 crore incandescent bulbs and CFL with LEDs and replace 3.5 crore old street lights by LED street lights.”
Domestic Efficient Lighting Programme (DELP) and Unnat Jeevan by Affordable LEDs and Appliances for All (UJALA) schemes have made mass manufacturing a reality in India. EESL, the core agency for the distribution of energy efficient products, has set targets which are high and will benefit the industry.
Tushar informs, according to the Government’s UJALA program, as of now, more than 29.49 crore bulbs and CFLs have been replaced by LED lamps. In the street light segment, as of now EESL has replaced 54.25 lakh street lights across India and under the national street lighting program, a total of 3.5 crore conventional street lights are to be replaced with energy efficient LED street lights.
Rambo Zhang, Country Head, Opple India states, “The LED industry is rapidly growing. Earlier it was a costly affair but with time and technology developments they have become cheaper and governments are encouraging people to cut their energy use these and thus contribute towards sustainable environment. Conserving energy is one major thing that these LED Light companies are looking forward to. They keep on creating new and innovative lights that are suitable for the Indian consumer and are pocket friendly. LEDs consume energy and are pocket friendly and really contribute towards sustainability.”
Within last few years, with the rise of smart cities, use of LED bulbs and streetlights has bounced up in the houses, offices and on the roads all over the world. Converting the conventional light into energy efficient LED lighting leads to cost and energy savings and a lower reliance on fossil-based fuels. Earlier the use of incandescent bulbs was high and they could be easily seen in our home which sometimes created a dark effect and was quite prone to heat. But technology has changed a lot since then and also has our home styles. Similarly healthy and cost effective lighting along with energy conservator feature marks the future of LEDs.
Sumit Joshi, Vice Chairman and Managing Director, Philips Lighting India, “The lighting landscape in India has seen a massive transformation with the introduction of LED technology. The lighting industry is bullish on its growth prospects owing to rapid urbanisation and increased awareness about LED products amongst consumers in India, across various user segments such as home, professional and public lighting segments. The major shift in the LED space has been the transformation from a product-based solution to a comprehensive connected lighting solution, paving the way for a fully digital world through remote monitoring and control. Additionally, LED’s also have a lower overall total cost of ownership, higher durability, longer life and deliver an enhanced lighting experience as compared to conventional solutions. All these factors have contributed to a significant growth in the industry in India.”
Sumit acknowledges, having pioneered the development of energy efficient LED lighting, Philips Lighting has committed itself to taking light beyond illumination. Through connected LED lighting, Philips Lighting foresees a future where lighting innovations connect seamlessly with smart controls, networks, devices and apps to positively benefit and improve lives and drive new business values.
Major growth drivers
“The lighting market in India is evolving rapidly moving from conventional products to LEDs. This transition is driven by an increasing number of government initiatives for energy conservation, rising consumer awareness about energy-efficient products and innovative products and solutions offered by the companies that are in sync with the overall trend of technology and digitisation. The lighting market is expected to grow tremendously even in the long run on account of the demand for a smart, connected lifestyle and for energy-efficient products,” acknowledges Anil.
Lighting was earlier being used only for illumination purpose. But, with evolving lifestyle changes and consumer preferences, lighting has now become an integral part of the home décor. People, nowadays prefer more elegant, decorative and aesthetically appealing lights and lighting fixtures which harmonises with the interiors of the house or commercial places. Lighting systems today add to the aesthetics of the wall, curtains, and other interiors and add to the beautification of a property be it a domestic house or a commercial space in a city or a town. People are now ready to spend lavishly on home décor.
Speaking on the major growth driver Tushar Informs, “National LED programme, the mass scale LED distribution system, has already been a game changer. It ensured that the pricing came down drastically, since there were high volumes of procurement. We believe that there is a massive growth opportunity for the next 5-10 years. The demand is likely to also be in outdoor lighting like streets and roads.”
Rambo opines that lights play a major role in setting the right kind of environment for any place, be it residential or commercial areas. There are a few major growth drivers that remain constant in terms of the impact that lights have in a certain place, one must keep these factors in mind while buying LEDs:
- Flicker Free
- Energy Saving
- Environment Friendly
- Long Lasting
- Low Heat Emission
- UV Free
- Mercury Free
Sumit informs, The major factors affecting the growth of LED lighting industry are the increasing number of government initiatives for energy conservation, rapid urbanisation, rising consumer awareness about energy-efficient products and innovative products offered by the industry that are in sync with the overall trend of digitisation. This evolution indicates a tectonic shift in technology from electrical to electronics. In turn, this may represent a significant growth opportunity for companies offering electronic hardware/components and solutions used in LED lighting with functionality across homes, public and professional lighting.
Havells India Limited
Anil says, “We are extremely optimistic about the future of our lighting business in this market on the back of the govt’s positive initiatives like UDAY, UJALA, Smart Cities and Power for All which have been undertaken to improve the power sector in India. We are also bullish on the govt. promoting the use of energy-efficient LED products and greener fuels. And, in order to tap the growth potential in the power sector in India, we have already enhanced our manufacturing capabilities from 5 lakh lamps to 25 lakh lamps per month, so that it not only assists the government’s plans for increased efficiencies in the power sector, but also puts Havells in a position to benefit the maximum from this.”
He adds, “With a dedicated state-of-the-art in-house huge production facility for fixture manufacturing, we at Havells are all set to support Government’s initiatives. We have also started the process of phasing out the CFL’s and focussing on the manufacturing of LED lights which have huge growth potential and currently contribute 75 per cent to our lighting division’s turnover.”
Havells is launching innovative lighting solutions such as Power of Ethernet (POE), smart street lighting LED solutions and indoor light automation which will bring new era of efficiencies and savings in lighting usage and consumption. Havells has also launched two affordable lighting products for retail consumers “Tyrica” and “Quadra Glow”
Anil shares, “We have recently bagged large scale projects from government entities and are also making a big foray with private sector conglomerates. We are operating in segments like government, industry, commercial spaces, retail, building façade, etc. and creating milestone with latest state-of-the-art technologies.”
Philips Lighting India
Philip continues to maintain leadership as the world’s major lighting company. In line with objectives, Philip had a comparable sales growth in 2017 driven largely by the growth of LED and connected lighting systems and services, which demonstrates the successful execution of their strategy. The company also further increased its operational profitability with significant improvements in LED, professional and home segments, delivering a robust free cash flow.
NTL Lemnis focuses on residential, commercial, industrial and retail verticals and has a slew of offerings for both projects and B2C segments. The company have supplied more than 1.5 crore bulbs and were one of the major suppliers to EESL till 2015-16. Tushar says, “We believe that in the future, the demand is likely to increase majorly in outdoor lighting and therefore we are adding more and more products in this segment. Our streetlights portfolio is developing very well.”
He also adds, “We have established our footprint in various parts of North, West and Southern parts of India and have tied up with several like-minded people to take care of the distribution, but it will still require a mammoth effort to cover the entire length and breadth of the country.”
Opple strives to make continuous efforts in the directions of new innovations and contribute towards the industry and the country. The company is rapidly growing and have been vital in playing a catalyst in the growth of the industry as a whole. OPPLE makes an ever growing effort to get the best out for its consumers. OPPLE has made many projections in the past, some of these have been mentioned below for yrence.
- Geometric Lighting
Geometric lighting fixtures are amongst the hottest lighting trends now. These lights invoke a minimalist aesthetics; they’re not just for modern and contemporary interiors. The key to their versatility is utter simplicity. The geometric trend is a great option if you’re looking to give your space a modern or mid-century vibe.
The rise of controls has emerged along with the rise of LEDs, which can be dimmed and have the ability to send and receive data. Improvements in user interfaces, and the ubiquity of smart phones and tablets, are also helping. With the rise of wireless controls and power-line communication, it’s no longer a task to add controls to an existing building.
- Adapting to new working patterns
Trends have kept changing. We don’t work in the same way we used to. Today most of the jobs are performed on the way. Mobile working and hot-desking are growing and people may work in different spots throughout the day. This shows task lighting is rising and giving people its control is most important. These patterns are allowing individuals to work towards energy conservation. People can use what they want and turn off what they don’t.
- Cost Friendly
These lights are easy to maintain and come in a relatively cheaper price as compared to the ones used earlier. These lights have a longer running life and are easily replaceable. They are available in several designs, colours, patterns, and are way cost friendly.
The lighting market in India is evolving rapidly moving from conventional products to LEDs.
Anil Bhasin, Executive Vice President, Havells India Limited
National LED programme, the mass scale LED distribution system, has already been a game changer.
Tushar Gupta, Executive Director, NTL Lemnis
Conserving energy is one major thing that these LED Light companies are looking forward to.
Country Head, Opple India
The major factor affecting the growth of LED lighting industry are the increasing number of government initiatives.
Sumit Joshi, Vice Chairman and Managing Director, Philips Lighting India