China's LED lighting market will grow to US$7.4 billion in 2017 from US$3.1 billion, as ongoing urbanization, local energy savings targets, and price cuts make the technology more appealing, according to Lux Research.
Both residential and commercial segments will drive LED lighting to a compound annual growth rate (CAGR) of 24%, far outpacing the 5.6% CAGR for the broader lighting market. As a result, LED lighting will grow its share of the lighting market from 9.6% to 18%.
"LED lighting has changed from expensive products outside the cost-conscious sweet-spot of China buyers to value-adding solutions, gaining market share and realizing sustainable growth," said Jerrold Wang, Lux Research assistant.
Lux Research also said Guangdong, Shanghai, Zhejiang, and Jiangsu are premium markets for LED lighting. Additionally, the China residential LED market will grow from US$23 million in 2013 to US$310 million in 2017, a CAGR of 92%, the highest among five market segments - as average prices fall the fastest, from US$6.02 per fixture in 2013 to US$3.13 in 2017.