INDONESIA LED LIGHTING MARKET

Indonesia LED Lighting Market is expected to witness a CAGR of approximately 16.1% during the forecast period, 2024-2031, driven by rising need for energy-saving lighting solutions coupled with favorable government initiatives.

Major Market Drivers and Emerging Trends

The Indonesia LED lighting market size expansion is driven by a surge in demand for energy-saving lighting systems along with the growing urbanization and infrastructure modernization which leads to larger investments in LED technology. Due to their low energy usage and long durability, LEDs are increasingly being adopted in urban infrastructure initiatives such as commercial building and street lighting installations.

The growing middle class especially in urban areas is also driving the increased need for LED lighting for residential spaces which demonstrates the connection between economic growth and the adoption of modern lighting solutions. Additionally, the market in Indonesia is being shaped by the increasing impact of modern lifestyles and the push for innovative lighting technologies. The substantial drop in LED prices in recent years is further contributing to market expansion.

The other factor supporting Indonesia LED lighting market growth is supportive government efforts to promote eco-friendly lighting solutions. Indonesia’s electrification rate in 2023 was 99.78% and the government is targeting full coverage by 2024. Raising the electrification rate in Indonesia presents significant challenges because the country comprises over 17,000 islands with many communities separated by vast distances. The government plans to increase electricity penetration with LED technology playing a pivotal role in helping the country reach its energy-saving objectives.

With increasing investments in power infrastructure and a growing global focus on environmental sustainability, the government has integrated the lighting industry into its strategy to promote energy efficiency. LED lights are not only encouraged for use in public construction but also in transportation and commercial lighting sectors. The government’s initiatives and regulations that promote LED lighting in public areas and advertising displays including billboards are further anticipated to increase the demand for LED lights in non-residential sectors. Plans are underway by the government to transition from traditional printed billboards to LED displays with a vision to reshape Jakarta into a city with vast LED boards much like Tokyo.

Additionally, by focusing on attracting foreign investment and encouraging domestic production, the government aims to stimulate market growth. The Indonesian lighting market sees considerable investment from multinational companies with Philips leading the way in the LED segment.

Based on the installation type the market can be segmented into retrofit and new installation. Choosing between retrofitting existing fixtures or purchasing new ones is a key consideration when switching to LED lighting. An LED retrofit offers the opportunity to benefit from high efficiency lighting technology as it provides advantages like reduced power consumption and fewer fixtures to purchase. Upgrading to an LED retrofit can lower energy costs and boost productivity as optimal lighting is proven to boost worker performance. Retrofitting offers a more affordable and convenient solution in comparison to new installation as it involves just swapping out bulbs for LEDs without the need for additional wiring or structural modifications.

Based on end-use application, the market can be segmented into indoor and outdoor lighting. Within the indoor segment, the move towards LED in residential spaces is accelerating, fueled by the energy savings and the rising availability of cost-effective LED options. With a growing focus on reducing electricity usage, many homeowners are selecting LEDs to help lower their energy expenses. The commercial sector is investing in LED to boost lighting performance and lower operational expenses. In industrial applications, LEDs offer advantages such as improved lighting quality and longer lifespan, all of which enhance productivity. In the outdoor segment, LED technology is quickly replacing conventional lighting such as streetlights and public space illumination as it offers better brightness and energy efficiency.

Based on the product type, the luminaires segment has a significant market share. Luminaires are fully integrated LED units featuring the bulb and driver in a single yet reliable unit that can be installed quickly and easily. Retrofitting LED luminaires into halogen bulb fixtures is simple which requires only basic DIY tools for installation especially when the units are wired directly to the mains. Certain luminaires may require the expertise of an electrician for proper installation.

Top Market Players

Key notable players in the market include Philips, Panasonic, PT Jaya Eco Energi, Solarens Ledindo, among others.

Key Developments

• • In 2024, a subsidiary of the renowned Unilumin Group LAMPRO launched its latest LED display solutions in Indonesia which underscores its commitment to providing advanced display technologies to customers around the world.
  • In 2023, ITS collaborated with Pasuruan City Government and PT Panasonic Gobel Life Solution Manufacturing to jointly produce LED lamps. The BBI LED product launch is a pivotal move to cater to the surging demand for lighting solutions in Indonesia.

Segments covered in the Report:

Indonesia LED lighting market has been segmented on the basis of installation type, end-use application, and product type. The installation type segment market is segmented into New Installation and Retrofit. Based on end-use application, the market is segmented into Indoor Lighting and Outdoor Lighting. Indoor lighting is further segmented into Residential, Industrial, Commercial and Others. Outdoor lighting is further segmented into Architectural, Highway & Roadway, Public Places and Others. The product type segment market is segmented into Luminaries and Lamps.

Report Coverage	Details
Market Revenues (2023)	USD Million
Market Base Year	2023
Market Forecast Period	2024-2031
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Installation Type, By End-Use Application, By Product Type
Regional Coverage	Indonesia
Companies Profiled	Philips, Panasonic, PT Jaya Eco Energi, Solarens Ledindo, among others; a total of 4 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Indonesia LED Lighting Market by Installation Type

• • New Installation
  • Retrofit

Indonesia LED Lighting Market by End-Use Application

• • Indoor Lighting
  • Residential
  • Industrial
  • Commercial
  • Others
  • Outdoor Lighting
  • Architectural
  • Highway & Roadway
  • Public Places
  • Others

Indonesia LED Lighting Market by Product Type

• • Luminaries
  • Lamps

Indonesia LED Lighting Market Leading players (Option 1: Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Philips,
  • Panasonic,
  • PT Jaya Eco Energi
  • Solarens Ledindo