LED production in GCC to triple revenue in the next five years
GCC production of LED lighting is expected to reach six per cent in 2013-2014 due to increased oil production, according to Gulf News
The analysis by Frost & Sullivan found that the market earned revenues of $115.7 million in 2012, and estimated the figure to reach $349.8 million in 2017.
The inflow of infrastructure investments into the region due to an increasing population, and upcoming events such as the 2022 FIFA World Cup is said to be creating such opportunities for the LED lighting market.
Several Middle Eastern countries have already banned incandescent light bulbs due to their inefficiency, which opens the door for a growing interest in LED lights.
“The GCC government’s legislation mandating the use of energy-efficient lighting technologies such as LEDs in public sector outfits, common public spaces, utility services, and commercial buildings has been a shot in the arm for lighting vendors,” noted Kumar Ramesh, Industry Manager, Environmental and Building Technologies Practice, Middle East and North Africa, Frost & Sullivan.
With GCC governments also looking to reduce their carbon footprint, there has been greater demand for LED lighting.
Despite so, many customers remain resistant to start using LED due to its high initial costs. Manufacturers also face pressures of obtaining government funding for the capital intensive production process.
“Providing high-standard lighting solution will guarantee growth in demand and despite its high initial costs, consumers will increasingly prefer LEDs to conventional lighting technologies for its long-term benefits,” added Ramesh.