The Russian government plans to open up the energy efficiency of LED lighting market development opportunity

Russia's point of view LED lamps revenue $ 3.7 billion in 2020

    LED lighting fixtures and bulbs, accounting in the Russian lighting market continues to grow. Currently LED lighting products revenue, accounting for about 37% of the general lighting market total revenue, was $ 714 million. BorovKov said the estimated proportion of LED lighting products, will grow to 83% in 2020, on revenue of about $ 3.7 billion.

    Currently, commercial lighting lighting market in Russia accounted for the largest area, followed by office lighting and industrial lighting and other areas, which are more adequate funding, and the lighting quality and energy efficiency have certain needs, and therefore accounted for far greater compared with other areas . With the lighting market gradually towards the development of smart lighting controller whom demand growth.

    Now, however, in addition to replacement of halogen lighting, overall lighting accounts for relatively few alternatives, because of its high prices, the government has to consider when purchasing outdoor lighting equipment. Borovkov noted that the Russian government procurement lighting equipment, more emphasis on price rather than quality. Therefore, the current Russian government procurement of outdoor lighting equipment, there are 60% of the lower prices, such as sodium bulbs and lamps.

    Government procurement to promote the growth of LED lighting

    Even so, the lighting market still has growth momentum. Russian Railways (RussianRailwayCorporation, RZD) to adopt a comprehensive LED lighting to replace all domestic railway station plans. Borovkov said Russian Railways is one of Russia's largest state-owned buyers, well-funded. From 2009 implementation plan have been completed renovated railway stations and rail lighting, LED lighting is also installed inside the compartment. However, due to program covers a wide range, so which is still ongoing.

    Although the Russian government to implement energy efficiency policies, but did not provide any relevant subsidies to lighting manufacturers. Borovkov continue to explain, now fight for Lighting Association, at least I hope the government will give subsidies to local LED solutions. Ministry of Economic Affairs had issued a decree in 2008, against the government and municipal lighting equipment procurement case, the support of local LED manufacturers by tender; procurement case, LED lighting elements required to account for 5% of the whole. Where was marked by the local vendors, you can enjoy a 15% purchase price subsidies.

    Later, the Act again in May 2014 to make changes, currently entitled to a 15% price subsidy manufacturers, expanded to include Belarus, Kazakhstan Customs Union, including Russia (CustomsUnionofRussia), but the subsidy is limited to a specific range of products, lighting the finished product is not included. Borovkov said Russia lighting business consultants are in consultation with the Ministry of Economic Affairs, period lighting fixtures can be incorporated into the finished product subsidy range.

    Russians stationed overseas manufacturers preferential lighting market

    As the LED lighting market continues to grow, with the Russian government advocates factor energy efficiency programs, the overseas manufacturers desire to enter the Russian lighting market also will increase. Borovkov said Russian authorities are very interested in foreign investment, will be stationed in the Russian Free Economic Zone (FreeEconomicZones) of overseas manufacturers to provide relevant deals.

    According Borovkov argument, vendors need to have a smooth and successful five key to enter the Russian market. First, the establishment of local legal entities (legalentity), parties have qualified to participate in bidding tenders for state and municipal. Second, through the construction of a local production plant in Russia, and the production of "made in Russia" (MadeinRussia) products, you can get 15% of the price subsidies at the national and city landmark case. But as mentioned above, the current lighting and finished in the subsidy-free range. Third, have a vast distribution network. Fourth, the company named subject to local acceptance of Russia, so that local consumers easily identify and pronunciation, but also easier to remember and accept. Fifth, apply for special economic zones (SpecialEconomicZones) legal entity.

    Under the Russian government's support and promote, LED lighting market is expected to grow in 2020 to $ 3.7 billion; its huge market size, but also manufacturers aiming to focus on the development of Russian market reasons. On emerging markets, the development of the Russian lighting market, quite worthy of close attention.