Light speed transition
Germany is one of the ‘growth hot spots’ in the global LED market, according to a study by Frost & Sullivan. Technological advances combined with the push to make Germany more power efficient have given LED producers a plethora of opportunities.
Street lights have been on this conversion path for a while. Street lighting -- the old stuff -- accounts for a filament-busting 50% of electricity consumption in German cities. LED lighting is reducing this consumption, but the initial investment is quite high and it has taken some time to get the correct investment models together.
Those investment models are being found and it is having an effect. LED share in the German lighting market turnover increased from 3% in 2009 up to 25% in 2013. More than 3 million street lighting points - one third of all street lighting points in Germany - will be replaced over the next couple of years, representing a huge chance for LED companies specialized in street lighting. Some companies, such as Korean street lighting manufacturer WK, have already jumped at the chance, citing being able to use the ‘Made in Germany’ trademark as one of the main reasons for producing here.
“GTAI is working with more and more SMEs from abroad, establishing German subsidiaries in order to manufacture or assemble their LED products with German engineering and technical staff,” said Jonathan Schoo, Manager Electronics and Microtechnology at GTAI.
Pressure from an EU directive in 2012, which halted installations of filament light bulbs in street lighting, as well as from Germany’s own ambitious target of a 40% cut in CO2 emissions by 2020, have given the LED industry a real shove.
Domestic lighting is undergoing the same change as that on the streets. The compound annual growth rate for LED lamps in Germany is projected to be 27% for the period 2008-18. The number of LED lamps sold has slightly increased sharply since 2012, mainly due to technological progress (more lumen, less dollar per lumen) and regulatory intervention.
At the annual Strategies in Light trade fair in Santa Clara, Ca. this week, Germany Trade & Invest (GTAI) outlined the extent of the investment opportunities and conditions in this burgeoning market further.
“Germany's expertise in lighting design, production processes, and new high-tech materials -- all essential elements to lighting technology -- along with a flourishing market, make Germany an optimal investment location for the LED lighting industry,” concluded Schoo.
Germany Trade & Invest is the foreign trade and inward investment promotion agency of the Federal Republic of Germany. The organization advises foreign companies looking to expand their business activities in the German market. It provides information on foreign trade to German companies that seek to enter foreign markets.
Andreas Bilfinger, Director, Public Relations - Germany Trade & Invest
+49 30 200 099-170