According to a survey, Russian LED manufacturers have at least 30% market share in different market applications. LED light products in Russia account for 37% of general lighting and is valued at $714 million. The market is projected to increase 83% to reach $3.7 billion by 2020.
The Russian market where foreign companies tend to have the largest market share and market penetration rates remain low. In addition, LED bulb prices are also much higher in the Russian LED market. In Russia a 7W LED bulb can be priced 30~40% higher than its counterpart in Taiwan. Russian consumers are also accustomed to these higher price tags.
The Russian government subsidy approach has mostly been through large scale infrastructure projects, such as The Russian Railway Corporation decision to retrofit all railway station lighting with LEDs. Another ongoing project has been a major Russian gas line project, The Power of Siberia, which is a 4,000 kilometer long cross nation gas pipe line to deliver gas from Russia to China. Lighting demands in the project launched in 2012 amounted to 2 billion Russian Rubles out of the total 2 trillion ruble project, and is expected to be completed by 2017.