LED lighting is comparatively a new technology with respect to other conventional lighting sources. Hence, consumers are yet to understand the benefits of LED lighting and adopt it. However, many are adopting it as they see how this technology can change their way of living.
Although the use of LED lighting in domestic applications is still picking up slowly, and may take some more time, it has already started finding its applications in the commercial, retail, industrial, infrastructure and real estate sectors. Therefore, the buying trends in LED lighting markets in India is picking up in the metropolitan cities more than the tier II and III cities.
Energy efficiency is fueling demand
As compared to CFLs, LEDs are 50 per cent more energy efficient, and have a longer life than CFLs as well. LED lights can last up to 50-60K hours, but as of now, the Indian LED lighting manufacturers can assure a life of 20-30k hours only. However, with Indian manufacturers investing in R&D, and with awareness level of consumers increasing, the buying trend for LED lighting in Indian markets will pick up significantly in the coming years. Consumers who prefer energy efficiency are also switching over to LED lights.
Falling prices lead to demand
The buying pattern has also gradually moved from being brand driven to being price driven. User are also gaining confidence in the Indian manufacturers who have proved their capability to deliver value for money products to the price sensitive customers.
With the falling prices for certain LED lighting products like LED downlights, LED bulbs and LED lamps, and LED streetlights demand has increased significantly. For example, 15W downlights, which were selling at Rs 2500 each, have come down to around Rs 1500. Even LED tubelights of 18 W, which replaced 36W FTL, have come down from Rs 3000 to around Rs 1700.
The reducing price tags has also increased the buying power of the Indian customers, and has led to increased penetration across different sectors in India.
Although the first investment on LED lighting is a little more as compared to the conventional lights, the return on LED bulbs is becoming increasingly attractive as prices continue to drop.
Govts contribution in reducing price
Industry experts feel that with the Indian government plan to start chip manufacturing in the country, the prices of LED lights will fall even further in the coming two to three years. Also, some other efforts like the recent reduction of VAT from 12.5 per cent to 5 per cent on LED products by the Delhi government have also added to the fall in prices.