Thailand LED market overview and 2015 outlook

<< Go Back Posted By:administrator on Feb 24,2015in Industry News

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About 90% of LED products in Thailand are imported from China or other countries. Most Thai LED lighting manufacturers are OEMs or ODMs, and tend to assemble imported LED components in the country rather than manufacture LED chips and other crucial components. The Thailand government estimates the country’s LED market size is about $2.44 billion, and has a projected growth rate of CAGR 30% during 2015~2020.

Thailand’s unstable political situation might slow down LED market developments. Despite the government’s optimistic forecast for Thailand LED market growth, Thailand’s overall GDP growth is less than 2% 2014. Commercial construction projects have also slowed down, as investors remain speculative. In addition, rising commercial real estate rental fees will make it difficult for manufacturers that depend on traditional retail channels.

On a positive note, Thailand LED manufacturers are expected to benefit from the kickoff of the ASEAN agreement in 2015, since it will open access to neighboring country markets. Some Thailand LED manufacturers are planning to expand their presence in the Southeast Asian market, such as in neighboring Vietnam and Myanmar after the ASEAN agreement comes into effect.