Panasonic aims to increase its European lighting revenue in 2018, reported Kyodo News.
The plan is to raise lighting revenue in Europe from JYP 30 billion (US $330 million) in 2014 to JYP 36 billion by 2018. Panasonic analyzed there is still market growth potential in Europe and Japan, due to LEDs low market penetration rate. To expand market presence in Europe, Panasonic will be prioritizing LED lighting component sales.
German LED lighting company Vossloh-Schwabe was acquired by Panasonic in 2002 to expand its LED business.
The Japanese manufacturer’s lighting business comprises of residential and retail luminaires, LED bulbs, and lighting component businesses. Globally, Panasonic ranks third in market share.
Previously, Panasonic was largely promoting sockets and LED components to luminaire manufacturers in the European market where there are many strong contenders, such as Philips. The promotion of luminaires and bulb products in the European market marks a transition point in its lighting product strategies.
Severe power shortages in Japan in the aftermath of the 9.0 magnitude earthquake and tsunami that hit the country in March 2011 has driven LED permeation in the country, where LED lighting products has close to 50% market penetration rate. In comparison, LED market penetration is only 30% in Europe that has a lighting culture of using white incandescent streetlights. Panasonic projected increasing energy saving awareness in Europe will spur LED demands in the region, and the company will expand its LED lighting components. Aside from commercial lighting products, Panasonic will also be promoting its smart streetlights that come with brightness and color tuning controllers.
Panasonic will also be strengthening its luminaire business in China and India. The company projects its lighting revenues will increase its revenue from JYP 31.77 billion in 2014 to JYP 40 billion by the fiscal year of 2018.
Among Japanese counterparts, Toshiba has also adopted a similar strategy of selling LED bulbs and luminaires in Europe, and is mostly selling products in Germany and France.
