LED price in Asia-Pacific expected to drop due to oversupply and technology developments

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Greentech Lead Asia: Non-residential LED market in Asia-Pacific has earned revenues of approximately US$183.8 million in 2012 and it is expected to reach US$420.4 million by 2017, according to a recent report from Frost & Sullivan.

One major roadblock preventing the wider adoption of LED is the high initial investment required to transition from conventional lighting to LED.  However, investors can be persuaded by demonstrating the return on investment through energy savings, analyst at Frost & Sullivan said.

With supply expected to exceed demand, there could be a drop in prices. Further price reduction is likely with technology development.

LEDs with greater functionalities, higher energy efficiency and lower heat wastage than conventional lights, is well poised to make the most of the opportunities in the Asia-Pacific non-residential sector, the report said.

The high recyclability of LED lamps is in line with businesses’ corporate social responsibility policies to reduce their carbon footprint, Prashanth Kay, Frost & Sullivan analyst noted.

“Recent breakthroughs will greatly extend the performance limits of LED lights, increasing their applications as well as making them feasible to several end-user segments,” noted Kay. “As LED lighting technology improves, the rate of adoption of LED lights for general lighting is also expected to increase.”

An LED company’s success will partly depend on the versatility and customizability of its products as well as its ability to help customers make an informed decision.

LED market in India is one of the fastest growing sectors in the country. In its earlier report Frost & Sullivan predicted Indian market for LED lighting is expected to grow to $400 million by 2015.

Prices of LED lighting systems have fallen by more than 30 percent in the past 2-3 years due to increasing adoption and manufacturing technology improvements. Some of the research areas where LED light majors in India  are concentrating include high voltage fluctuations, extreme weather conditions and power failures.

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