Russia LED Lighting Market Overview, 2028

A key factor driving the LED industry in the country is the government’s focus on energy-efficient lighting products. The Russian government has made several initiatives to increase energy efficiency in the lighting industry. This includes regulations that require a certain ratio of LED products that must be applied in national or city construction projects. In Russia, there were 1003 registered lighting equipment producers as of 2018, the Lightning Business Consulting organization reports. If we exclude the known importers, the remaining 800 small clients of LEDs are from 26 wholesalers and brokers. Since LEDs are also used to make other electronics, the number of these clients is considerably bigger. However, compared to lighting equipment, the volume of consumption is not as significant. A light-emitting diode (LED) is a semiconductor device that produces non-coherent, narrow-spectrum light when driven by electricity. LED-based lights are preferred to conventional lighting technologies because they are more energy-efficient, last longer, and need less electricity to run. As the lighting business converts to solid-state lighting and LED sources.

According to the research report “Russia LED LightMarket Overview, 2028," published by Bonafide Research, the market will grow by USD 1.49 Billion in the upcoming period, 2022–2028. The luminaires segment dominated the overall Russian LED light market share in 2022 and is expected to remain dominant during the forecast period. The growth of the local Russian LED market is being heavily influenced by the Russian government. Even though in recent years the Russian LED industry has been characterized by a lack of standardization, an opaque price structure, and poor product quality, this scenario is quickly shifting. A domestic LED infrastructure is being built with the assistance of state finance and private company investment, and businesses specializing in LED lighting technologies are sprouting up throughout Russia. As for lighting regulations, Russian lighting products tend to follow the IEC and national GOST R standards, which are mainly based on IEC regulations, and do not have special product standards.

The Russian market is very different from other emerging markets. In terms of market distribution, the Russian market has shown better performance. Based on LED inside’s actual visits and verification, up to 60% of the Russian outdoor luminaire market is under the control of specified manufacturers. This sets Russia apart from other emerging markets, such as Southeast Asia where big international brands including Philips and Panasonic have the most market share, while local brands only have a 30% market share in specific lighting application markets. The Russian market's special features have urged analysts to use more flexible models that include more variables when analyzing local market trends to acquire highly objective and reliable market information. Russian dealers and manufacturers began to shift from other regions such as China component manufacturers or agents directly imported components or modules, some manufacturers began to seek cooperation and joint ventures.

The world's leading LED manufacturers in Russia have their marketing channels or agents, of which there are many Asian manufacturers; not because of the more popular brands in Asia, and Europe, the Russian lighting market is relatively more intense competition than the European market. In Russia and other markets, where the different natural environments, the market structure is not the same, some of the programs only Russia can provide local companies. Overall, the competition is fierce, only large companies can survive, but only to expand the scale of SMEs to gain a foothold future. Rainbow Electronics is one of the largest LED component dealers in Russia. In the Russian LED market, 99% of LED packages. While the top 10 lighting manufacturers will directly import, the remaining 80% acquire raw materials from distributors. The Russian lighting distributor market is mainly controlled by three companies, with Rainbow leading the pack.

Russian politicians are very eager to adopt LED lighting technologies, and financial investors are assisting in the development of a domestic LED manufacturing capacity. 98% of Russia's LED lighting is now imported, but as domestic providers gain more traction, this position will change. On the other hand, some of the major users of LED technology in Russia are Gazprom and Russian Railways Corporation. Further, the newly-founded Non-Profit Association of Russian LED Manufacturers, which has been established by competitive suppliers Optogan and Svetlana Optoelectronics, is likely to play an important role in the consolidation of the Russian LED lighting market. Among the Russian lighting companies and distributors were a number – perhaps 15-20 – specializing in LED lighting products such as lamps and outdoor luminaires. Several of these companies, including Focus, Lighting Technologies, Optogan, and Svetlana Optoelectronics, are also members of the LED manufacturers’ trade association, which is officially entitled the “LEDs and LED-based Systems Russian Manufacturers’ Nonprofit Partnership”

The organization is headed by Evgeny Dolin, who is also president of the organizing committee for the LED Forum, and was a speaker at Strategies in Light Europe 2011. The Forum featured several speakers from outside Russia, notably Martina Paul, secretary-general of the CIE. Also, there were some speakers from Russian LED and lighting manufacturers, as well as representatives of the Russian government and other organizations. The research also looks at the market's competitive environment and gives profiles of the major players in the sector. Cree Inc., Dialight PLC, Eaton Corporation, Inc. (Cooper Industries LLC), Osram Licht AG, Panasonic Corporation, Seoul Semiconductor Co., Ltd., Signify N.V. (Philips Inc.), TRILUX GmbH & Co. KG, and Zumtobel Group AG are a few of the major companies active in the industry.

Covid19 impact on the sports Market
The COVID-19 epidemic has affected and will undoubtedly continue to affect the global lighting business. Residential constructions have been delayed in nations like China and India as a result of the government's strict lockdown procedures. Another effect of the pandemic on the LED lighting sector is the disruption in the supply of electrical components from China. The supply and demand in the lighting business have also been impacted by the paucity of raw materials needed to manufacture light casings, chips, and other components. Market expansion is anticipated to continue unabated during the shutdown. Due to the early closures in the business sector and industries like the automobile and retail, the pandemic has also had an impact on growth. The Lighting Industry Association (LIA) said that 89% of its members indicated that their businesses stayed open and had regained 95% of their revenues during the shutdown period.

Considered in this report
• Geography: Russia
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Russia LED Light market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type:
• Lamps :
• A-Type
• T-type
• Others (Can LED light bulbs, Flood LED light bulbs, Track LED light bulbs, Tube LED light bulbs, Etc.)
• Luminaries :
• Downlighting
• Decorative
• Directional
• Others

By Application:
• Indoor
• Outdoor

By Sales Channel:
• Retail/ Wholesale
• Direct Sale
• E-commerce

By Installation Type:
• New
• Retrofit

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual reports of companies, and analyzing government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by conducting telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the LED Lighting industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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Manmayi Raval

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