Under the background of the rapid rise of the Internet of Things industry, the implementation of the global concept of energy conservation and environmental protection, and the policy support of various countries, the penetration rate of LED lighting products continues to increase, and smart lighting is becoming the focus of future industrial development.

With the increasingly mature development of the LED industry, the domestic market gradually tends to saturation, more and more Chinese LED companies began to look at the broad overseas market, showing a collective trend of going to sea. Obviously, the major lighting brands to improve product coverage and market share will be fierce and lasting competition, then, which regions will be the potential market can not be missed?

1. Europe: Energy conservation awareness is rising.

On September 1, 2018, the halogen lamp ban came into full force in all EU countries. The phasing out of traditional lighting products will accelerate the development of LED lighting penetration. According to the Prospective Industry Research Institute report, the European LED lighting market continued to grow, reaching 14.53 billion US dollars in 2018, with a year-on-year growth rate of 8.7% and a penetration rate of more than 50%. Among them, the growth momentum of spotlights, filament lights and decorative lights for commercial lighting is particularly significant.

2. The United States: indoor lighting products rapid growth

CSA Research data show that in 2018, China exported 4.065 billion US dollars of LED products to the United States, accounting for 27.22% of China’s LED export market, an increase of 8.31% compared with 2017 exports of LED products to the United States. In addition to 27.71% of the unmarked category information, the top 5 categories of products exported to the United States are bulb lights, tube lights, decorative lights, floodlights and lamp strips, mainly for indoor lighting products.

3. Thailand: High price sensitivity.

Southeast Asia is an important market for LED lighting, with the rapid economic growth in recent years, the increase in investment in infrastructure construction in various countries, coupled with the demographic dividend, prompting the increasing demand for lighting. According to the data of the Institute, Thailand occupies an important position in the Southeast Asian lighting market, accounting for about 12% of the overall lighting market, the market size is close to 800 million US dollars, and the compound annual growth rate is expected to be close to 30% between 2015 and 2020. At present, Thailand has few LED production enterprises, LED lighting products mainly rely on foreign imports, accounting for about 80% of the market demand, due to the establishment of China-Asean free trade area, imported LED lighting products from China can enjoy zero tariff concessions, coupled with the characteristics of Chinese manufacturing cheap quality, so Chinese products in Thailand market share is extremely high.

4. Middle East: Infrastructure drives lighting demand.

With the rapid development of the Gulf region’s economy and the rapid growth of the population, prompting the Middle East countries to increase investment in infrastructure, while the rise of energy conservation and emission reduction in recent years also promote the vigorous development of power, lighting and new energy markets, the Middle East lighting market is therefore more and more concerned by Chinese LED companies. Saudi Arabia, Iran, Turkey and other countries are important export markets for China’s LED lighting products in the Middle East.

5.Africa: basic lighting and municipal lighting have great development potential.

Due to the shortage of power supply, African governments vigorously promote the use of LED lamps to replace incandescent lamps, the introduction of LED lighting projects, and promote the growth of the lighting products market. The “Light up Africa” project initiated by the World Bank and international financial organizations has also become an indispensable support. There are few local LED lighting companies in Africa, and its research and development and production of LED lighting products cannot compete with Chinese companies.

LED lighting products as the world’s key energy-saving lighting products, market penetration will continue to rise. LED enterprises out of the process, need to continuously improve their comprehensive competitiveness, adhere to technological innovation, strengthen the construction of the brand, to achieve the diversification of marketing channels, take the international brand strategy, through long-term competition in the international market to gain a foothold.