| Work Detail |
LED (light-emitting diode) lighting industry is rushing to the non-procurement market. This is because the public procurement market is expected to greatly decrease from next year due to the decrease in LED replacement demand by public institutions.
Domestic LED lighting companies have competitively entered the public procurement market in accordance with the governments efforts to rationalize the use of energy for public institutions. According to the Ministry of Trade, Industry and Energys Regulation on the Rationalization of Energy Use of Public Institutions, public institution lighting will be replaced with 100% LEDs by next year. This means that the demand for LEDs through the public procurement market will greatly decrease after next year. According to the LED industry on the 9th, the public procurement market for the lighting sector is expected to reach 300 billion ~ 400 billion won next year. This is a W30 ~ 130bn decrease from our estimate of W430bn this year, only half of 2017 (59.3bn). The industry estimates that the market size of LED lighting procurement through PPS from 2015 to 2017 increased more than 70% from KRW 342 billion (2015) to KRW 5963 billion, but the market share of the top 20 purchases fell by 2% on average. . As a result, companies that sold LED lighting through PPS are seeing new business opportunities in markets other than procurement. One such company is Solarruche. Solarruche anticipates that there will be a demand for LED light replacement through maintenance after next year, and decided to actively enter the market. Solarruches strategy is to win orders by replacing fluorescent lights with LED lights when replacing the school ceiling.
Solarluce said, "The LED lighting replacement work is nearing the end." Products installed seven or eight years ago are not as efficient as the current LED products.
Fine Technics is planning to expand sales with the aim of obtaining high efficiency certification in the public market and plan to spread LED lighting using ESCO (Energy Saving Company) system and various policy funds in the private market. Finetechnics expects to receive large orders in projects such as commercial and residential building lighting, and landscape and outdoor lighting, due to the recent full-scale LED lighting market. A company official said, “We are developing products with high-efficiency heat dissipation technology and entering the market.” |
