duction hub for lighting fixtures in the world, representing .... September 2014 at the Shanghai New International Expo Centre has been presented during a press ...
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LIGHTING
BOOMING MARKET FOR LIGHTING FIXTURES IN CHINA C
hina is currently the main production hub for lighting fixtures in the world, representing around 40% of total output, with capacity increased by 29% in 2013. It is also the largest exporter of lighting fixtures and components worldwide with over USD 24.6 billion in 2013. During the 2008-2013 period, Chinese export of lighting fixtures (including components) recorded yearly average growth of 21.6% in USD, resulting from an average 18% growth (in USD) for lighting fixtures and 44% yearly for components, due to the booming export of LED modules and other lighting packaging, that are currently included in the trade statistics for lighting fixtures. At an early stage of the 2008-2013 period, components accounted for a small share of total amount (about 10%), whereas export share of lighting components on the total lighting export is now about 23%. The United States is by far the main market of destination for Chinese exports, although with a declining share (from 28% in 2008 to 25% in 2013). Germany is ranking second, with stable market share at 7.6%, resulting from a +18% yearly average growth since 2008 and +45% in 2013 on 2012. Japan ranks third and could increase by 40% on average in the period 20082013. China’s export towards Europe covers 35% (43% in 2008), presently slowing down due to weak market conditions. Germany, the United Kingdom, Netherlands and France are the main destination markets. Malaysia and Australia are two booming markets for Chinese exports of lighting fixtures, with average growth rate of 48% and 23%, respectively, from 2008 to 2013. The whole Asia-Pacific region www.worldfurnitureonline.com
FOCUS MARKETS
by Mauro Spinelli CSIL
CHINA. ExPORTS OF LIGHTING FIxTURES BY SEGMENT, 2008-2013. MILLION US$.
Source: CSIL
is increasing as export destination, with Indonesia, India and Singapore showing over 30% average growth since 2008. RAPID TECHNOLOGY EVOLUTION Some relevant aspects of the lighting sector in China are: - increase of investments in machinery and technology and reduction of average number of employees per company; - tough competition as LED modules manufacturers are entering the fixtures market with new technology integrated solutions (Ex. Osram, Creee and many others); - leading groups in the home appliances business are eyeing the lighting business (Ex. Midea); - dichotomy between branded products for the local market and OEM production for exports; - LED based fixtures reached about 34% of the Chinese production on average; - LED penetration is high in outdoor lighting and still contained in the decorative/residential segment; - high level of market fragmentation, despite some recent M & A operations;
- distribution is becoming more and more specialised; - growth of e-commerce is also evident. According to NVC Lighting, LED lighting market will continue to grow extensively, with expectation of a further decrease of price difference between LED lighting products and traditional lighting products. LED lighting market still has great potential, due to the smart lighting development, the phase-out scheme for incandescent lamps in China and the Chinese government’s support and promotion for LED lighting products. Hue by Philips is a smart bulb solution to be controlled through smartphone or tablet with either an iOS or Android operating system through Bluetooth, WiFi, or ZigBee. Similar products have been presented by the Korean Seoul Semiconductors with the new Acrich 3. Also Chinese enterprises have introduced significant innovations in this field, BYD launched Wi-Fi based IC dimming products while Midea presented intelligent LED lighting control for bedroom, including wakeup call and curtains control. September 2014 - WF 33
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FOCUS LIGHTING MARKETS Opple booth at GILE
LED filament bulbs are expanding in the market, to substitute incandescent lamps. After the acquisition of Smalite, Honglitronic expected to expand the LED filament bulb business, also due to a simple manufacturing technology and low material costs. LED filament bulbs have lighting curves similar to incandescent bulbs and are ideal for replacements. DEMAND POTENTIAL Consumption of lighting fixtures is growing at overall level. Pushed by population growth and urbanization process the residential lighting segment is evolving fast. According to the United Nation figures, China has a total population of 1,344 million and it will probably reach 1,400 million by 2025. During this period, the urban population will grow from 50% to 65% of total. Demand for commercial lighting is on the rise considering the expansion of office spaces, retail premises and a significant number of hotels under construction. The total number of new shopping malls in China is likely to reach an unprecedented high in 2014, with around 150 stores opening in the top 20 urban areas. Furthermore, in 2014 China can count on 144,954 rooms under construction in 481 hotels, representing 68% of all projects and 74% of all rooms in the pipeline across whole Asia/Pacific area. Investments in infrastructures are overall growing in China and these large projects (roads, airports, railway/metro stations, ports and power plants) are pushing sales of outdoor lighting fixtures.
34 September 2014 - WF
Philips boot (retail lighting) at GILE
CHINA. AREA OF PARKS AND LENGTH OF PAVED ROADS, 1990-2012. HECTARES AND KM.
Source: CSIL
Promoted and organized by Messe Frankfurt, the Guangzhou International Lighting Exhibition (GILE), took place from 9 to 10 June 2014 at the China Import Export Fair Complex in Guangzhou. The 19th edition of the fair hosted 2,621 exhibitors (2013: 2,588) from 25 countries on a total exhibition area of 225,000 sq.m. and 21 halls. Visitors (129,885 from 132 countries and regions) increased by 11% compared to last year. Top-five visitor countries included India, Korea, Russia, USA and Singapore. Visitors included tradebased buyers such as lighting importers & exporters, merchandisers from international chain stores, lighting e-tailers / retailers and wholesalers. The 2014 exhibition also included five international pavilions, displaying recent developments in smart lighting technology from some of the industry top production hubs. The Japan Pavilion organized by JLMA and JETRO, the Korea Pavilion, organised by the Korea LED Association, including 10 exhibitors, the Hong Kong Pavilion leading a campaign called “HK Quality LED”. The Taiwan Pavilion hosted over 40 exhibitors and the U.S. Pavilion focused on “innovation and sustainability”. The inaugural edition of the Shanghai International Lighting Fair (SILF) set for 3-5 September 2014 at the Shanghai New International Expo Centre has been presented during a press conference. Next GILE, celebrating its 20th anniversary, is scheduled from 9 to 12 June 2015 at the China Import and Export Fair Complex in Guangzhou.
