The Indian lighting market is undergoing a paradigm shift and evolving into a solution-driven one dominated by products like compact fluorescent lamps (CFL), metal halide, halogens and T5 fluorescent lamps (TFL) while, incandescent bulbs are on the verge of being phased out. According to Frost & Sullivan analysis, the industry is likely to reach INR 248,700 million by 2017, at a Compound Annual Growth Rate (CAGR) of about 16.2 per cent over 2013-2017. The LED lighting segment is expected to be the fastest growing segment at a CAGR of 42.4 per cent between 2013 to 2017 meanwhile the luminaires segment is expected to grow at the rate of 12.4 per cent between 2013 and 2017. But, the lighting controls segment that grew at a CAGR of 12 per cent between 2010 and 2012 is expected to grow at a CAGR of 10.2 per cent between 2013 and 2017.
As per the analysis report, the on-going power crisis in several states across India has brought together the industry participants and Government authorities to work toward energy saving and promote the use of energy-efficient lighting solutions like fluorescent and LED. In the 12th and 13th Five Year Plans, the Government is likely to make efforts to replace CFLs with LEDs. Hence, the demand for energy-efficient products such as LED and lighting control systems will rise as they not only save energy but also reduce operational costs. End users too are demanding application-specific solutions with the objective of reducing energy and saving operational costs. However, high prices act as a major deterrent in the transformation from energy-efficient to energy-efficient solutions.