Analysis of India lighting market

With the maturity of LED lighting applications, emerging markets to accelerate the introduction of LED lighting. India Tan Milner announced in 2013 will replace 200 thousand darbond incandescent lamp for LED lamp, and international lighting giant Philips, Panasonic in 2013 to rush into the India market news shows that India LED lighting market potential, an exclusive interview with the India LEDinside team De Nanosemiconductors CEO Deepak Core Loomba, India lighting market for readers.

India Market Overview

Talking about the India lighting market, Deepak Loomba pointed out that in 2012 the India LED lighting market size of about $100 million, but in the overall India lighting market share is not high, only about 3-5%, the home lighting market, the new case by LED, originally by CFL users to switch to LED products will low.

Deepak Loomba said that the growth of India LED lighting market mainly from government projects, such as the replacement of LED street lamps, orders from the government as a whole LED orders up to 51%. On the other hand, downlight and industrial non household lighting lamp has accelerated into LED light phenomenon.

In order to promote the development of LED industry, the India government resorted to two measures, one of which is the LED chip factory (FAB) into MSIPS (Modified Special Incentive award Package Scheme), 2 were eligible to refund subsidies industry cost, but the initial investment of not less than 50 million dollars, domestic manufacturers and foreign are applicable, the objective is to encourage in India, the local establishment of semiconductor fab.

In addition, according to the official preferential market access policy, government procurement will provide 5 number for the LED related products manufacturers (must enhance product value 50%) who do at least 50 percent value addition), but in the bidding price and specifications of no special preferential. The purpose is to allow local manufacturing LED plants to enter the local market.

In order to reduce the LED industry dependence on imports of the situation, the government of India has the two largest semiconductor subsidies of $2 billion 500 million, including in Gujarat, STMicroelectronics and Fab De Core Science & Technologies in Gujarat plant.

Deepak Loomba analysis, the majority of LED chips in India is still from Philips and Nichia, which, Philips market share in India lighting market up to 65%. While the blue chip market is dominated by foreign manufacturers, including CREE, Nichia, Samsung and OSRAM, and EPISTAR and Everlight products Taiwan factory began to appear in the India market, but the Taiwan plant market share in India is still relatively low.

Challenges facing local manufacturers

Turning to the challenges facing local manufacturers, Deepak Loomba pointed out that the size of the India LED industry is not big enough to be a challenge, India manufacturers face no small pressure from Asian manufacturers. The LED products are still limited in India is still a developing country, the overall price downturn, while the low cost of access to local manufacturers to make the same gross profit margins.

On the other hand, the power and stability of the site is also one of the problems facing manufacturers, Deepak Loomba pointed out, is not easy to find a suitable LED to the manufacturing plant location, coupled with the power supply stability is still a big problem. The lack of local semiconductor work experience is also a headache for manufacturers.