Thailand’s Anemic Economy Might Slowdown LED Industry Growth in 2015

The Thai LED market has emerged as a market holding great potential, government statistics estimate the current LED market value has reached 80 billion Thai baht (US $2.44 billion), said Dennis Stech, Vice President, of Hatari LED at EcoLightTech Asia 2014 in Bangkok, Thailand in mid-November. However, the country’s unstable political situation might lead to lower LED industry growth rates in 2015.

Compared to before 2014, when led street lights price share was only 5% in the Thai lighting industry, LED market share is expected to reach 70% by 2020, said Stech. LED lighting penetration rates in the Thai lighting market has reached an estimated 10% to 15%, said Vincent Chang, Manging Director, Glaring International. The LED industry has really picked up in 2013, observed Nathan kulvadhanaphan, Product Development Manager, Lumoz, AKE Enterprise.


L&E's outdoor luminaire products. Thai government policies have driven down LED bulb prices. (LEDinside)
The increasing LED lighting penetration rates are attributed to Electricity Generating Authority of Thailand (EGAT) subsidies that have lowered LED prices to US $4 to $5, said Pongskorn Ouvuthipong, LED Product Director, L&E. “Government subsidies continue to play a key role in the Thai LED market,” he added.

The Thai government projected LED market Compound Annual Growth Rate (CAGR) to reach 30% in the next five years, to bring the total market value from US $900 million to US $1 billion. LED manufacturers reported growth rates were consistent with Thai government estimations. The average growth rate reported by the nine manufacturers willing to reveal revenue statistics was about 34.67%. Some high performers even reported growth rates soared at least 50%.

Yet, Thailand’s unstable political situation and sluggish economic performance might slow down LED industry growth next year. On May 22, 2014, the Royal Thai Armed Forces led a coup d'état that dissolved the former government headed by Yingluck Shinawatra and senate. The country has been under military junta National Council for Peace and Order (NCPO) rule since.

Commercial building led street lighting Manufacturer applications such as hotel lighting seen in this picture have declined because of recent political turmoil in Thailand (LEDinside)
In the private sector business investors are also more cautious about investing in real estate and building construction projects, which could further hurt the LED commercial lighting applications in the local market. “Real estate and building lighting growth have been stagnant in the Thai market this year,” said Eric Ooi, Group Marketing Manager, Trade Link Media, which publishes architectural lighting magazine Southeast Asia Building. Most investors are speculating because of the uncertain political situation, with many even considering to invest in Myanmar or Cambodia instead, he added.