India is the second populated nation and fifth prime electricity consumer that has been observing wide electricity demand-supply gap. A significant portion of the world’s total electricity generation has been spent on lighting by illumination sources and systems alone. The exhaustion continues to increase due to the development of new areas of applications such as Biological Lighting, Entertainment Lighting, Aqua Tissue Culture, Advertisement Lighting, etc.
The year 2020 started as a promising year for the lighting sector in India but was caught up by COVID 19 soon. However, Industry representatives believe that the lighting sector has changed, and today, smart lighting technology holds the key to the future of this industry. System integration paired with networked building-systems and automation is helping industries progress. The LED and Lighting industries are bound to grow as they are supported by the initiative that encourages the use of LED lighting system.
The LED lighting market in India is expected to expand at a CAGR of 23.6% during 2019-2025. The LED lighting market in India observed a gush in recent years due to the subsequent urbanization and growing population. In 2018, India’s energy demand raised by 4%, which outperformed the global energy demand of 2.3%. With the swelling rate of electricity intake, the demand for cost-effective and environmentally friendly solutions are also gaining power. Hence, in current years, LED lighting will extensively penetrate the conventional lighting market of India.
Some government schemes such as Street Lighting National Programme (SLNP) and Unnat Jyoti by Affordable LEDs for All (UJALA) continued to be the biggest demand drivers for India’s LED lighting market. These initiatives objective is to grow awareness between the customers concerning the acceptance of LED bulbs above conventional lighting sources such as halogen lights, CFL and incandescent bulbs. For example, under the SLNP, the government intends to change over 1.34 crore conventional street lights in India, out of which, around 1.04 crore street lights as on November 2019, were substituted.
The Northern region followed southern region accounts for the largest revenue share in the overall market in India. With numerous forthcoming infrastructural projects across the industrial, commercial and residential domains through several parts of the country, the demand for LED luminaires and lamps are predicted to observe development over the next few years.
Market drivers in India:
Lifestyle elevation:
The per capita income in India was INR 1,12,835 (USD 1,584.56) in March 2018, up from INR 1,03,870 (USD 1458.66) in March 2017. This uptick blended technological advancements have caused a dramatic shift in customer purchase decisions. Additionally, favorable demographics have also sparked the growth of the smart lighting market in India.
Need for proficient energy management systems:
Lighting accounts for 18-20% of the total power consumption in India. The quest for efficient energy, in order to quench the constantly proliferating power-guzzling systems is driving the smart lighting market. It has been projected that if the entire lighting system in India uses efficient LED lighting or smart lighting, the overall demand for power will be slashed by 50%.
Hurdles in front of the smart lighting market in India:
High installation charge:
The penetration rate of smart lights is still in its nascence given its staggering installation costs. Moreover, the surmounting expenses that tag with IoT-enabled systems is also hindering the growth of the smart lighting market. Since the conversion of existing electrical appliances to smart devices requires the installation of new products, customers are averse in shelling out for such expenses.
Absence of practical knowledge:
In order to be able to operate smart light devices, being aware of how the technology works is imperative. Due to a severe lack of digital literacy nation-wide, such demand is primarily expected to come from tech-savvy customers who are in sync with the latest market offerings. Plus, smart lighting may require multiple networking devices or apps. This again comes with its own costs.
Health consequences:
Short-wavelength visible light at very high intensities can be phototoxic to the retina. It has also been found that the blue light emitted by the LED lights affects the sleeping patterns and circadian rhythms, which can lead to various types of cancers.
