How the growing demand for energy efficient products is affecting the Indian LED market?
India is a developing nation that is determined to chisel its name in the world history books in the fields of science, technology, defence, business, and various other sectors. According to the recent development statistics, India currently stands at the 5th position in the global GDP ranking list with an estimated economy of almost $2.9 trillion and growing. However, it is also the second most populated country and the most populated democracy in the world with an estimated population of almost 1.3 billion (and counting).
This growing population is one of the major factors that has resulted in an increased demand for various basic amenities, especially power. According to a report, the electricity demand in the country has been continuously rising on all the fronts, including domestic, agriculture, commercial, and industrial sectors.
Due to such large population, the country is unable to cope up with the exhorbitant demand that has led to a looming large power crisis and a critical need of energy efficiency. As a result, the government uplifted the affair at the national level in order to encourage the use of energy efficient products.
The proliferation of the Indian LED market
In May 2015, the Government of India launched the UJALA scheme that aimed at switching the usage of over 200 million incandescent light bulbs with LED bulbs in order to save almost 10.5 billion kWh power as a whole. According to the top LED lighting manufacturers in India, this was the biggest encouragement for the Indian LED market as the industry has experienced massive growth since then.
Furthermore, elevated consumer awareness with respect to the cost effectiveness, longer life and inherent eco-friendly nature of LED lights has played a vital role in driving LED sales in the industrial, commercial and residential sectors.
Under the UJALA scheme, LED light bulbs were initially offered to all Indian citizens for free or at subsidized rates. The prices were slashed down by almost 60% that eventually encouraged more and more people to use the energy efficient LED lighting fixtures.
As per the government data, almost 35.9 crore LED bulbs have been distributed all over the country exclusively under the UJALA scheme till now. Furthermore, the government also launched its Street Light National Program (SLNP) in 2015 that aimed to replace the traditional street lights with LED street lights. Under this program, almost 1 crore street lights have been replaced till now.
The Electric Lamp and Manufacturers Association of India (ELCOMA) reports that the Indian LED industry recorded a revenue of ₹20 billion in 2013 that grew to ₹120 billion in 2014. Furthermore, since the Indian population has welcomed the idea of LED lighting, it is projected to record a massive revenue of ₹370 billion by the year 2020.
The leading LED light manufacturers believe that the efforts of the Indian government have paid off well as they’ve made the country more aware about the benefits of LED lighting solutions and their dominant role in saving energy. This is a huge boost for not only the LED lighting industry but also for the nation that requires critical attention towards energy efficiency.