According to the Research and Markets, the LED lighting market in South Korea to grow at a CAGR of 22.99% over the period 2014-2019.
Research and Markets pointed that LED lighting is gaining acceptance because of its efficiency and low cost. It is environment-friendly as it helps reduce energy consumption by up to 40%. In addition, LED light has many advantages over other lighting sources such as high intensity of brightness, high energy efficiency, low-voltage and current requirements, low radiated heat, high reliability, negligible UV rays, long lifespan, and ability to be easily controlled and programmed.
Shift in demand from superior to low-End LED products is one of the key trends upcoming in this market. The declining ASP of LED lamps stems from the presence of a good mix of high-, medium-, and low-end products in the market. The high-end products are generally sold to commercial and industrial customers, which account for 30% of the overall LED demand.
Research and Markets stressed , vendors in South Korea have not restricted their focus to premium segments such as industrial units. They are also focusing on providing medium- or low-end LED lighting products for household lighting purposes, where cost plays an important role. Big players are seeking vertical integration to obtain more control over their supply chain, whereas smaller manufacturers are looking for partnerships and M&A.
Further, Research and Markets states that LED lamps with better lumens color efficiency are required to replace high-power incandescent lamps. Although some companies use quantum dots to obtain a better color range, the main challenge is to achieve cost optimization with economies of scale.
