Under the 12th Five-Year Plan, local governments in China continue to promote LED lighting. Due to lack of strong international sales in 2012, China-based LED lighting firms have been focusing on domestic demand. Market observers believe the penetration rate of LED tube and light bulbs will exceed 15% but price competition is likely to continue.
Local governments in China recently announced LED lighting subsidy programs. In Guangdong province, 1.1 million LED street lamps are expected to be installed in 2013. Within the province, Jiangmen city plans to subsidize 20% of public lighting while Foshan city will subsidize 10% of total LED lighting construction costs.
China has been introducing a series of policies to stimulate domestic demand for LED lighting including the allocation of CNY2.2 billion (US$356 million) to promote energy-saving and LED lighting in 2012, said industry sources. The government also implemented a ban on the sale of incandescent lighting above 100W on October 1, 2012, added the sources..
In 2013, local governments continue to support the LED lighting industry through procurements. Local governments hope to achieve the carbon emission reduction targets set by the central government. However, China's subsidy programs and projects usually benefit a few local firms.
China-based industry sources predict the penetration rate of LED tube and light bulbs to reach above 15% in 2013 and the output value is likely to reach around CNY16 billion, representing an on-year growth of 60%. Industry sources noted that by 2014, the output value of the LED lighting market in China is likely to reach CNY19.2 billion.
Despite inconsistent quality, China's LED lighting market has been showing strong growth compared to other countries.
