Thailand's LED lighting market accounts for 12% of the total lighting market share. The government of Thailand estimates the country’s LED market size to be close to $2.44 billion, and has a projected growth rate of CAGR 30% during 2015-2020.
In terms of business opportunities, it is foreseen that a large number of companies and government projects will be using LED products as evidenced below:
▪ LED automotive sector: The number of cars with LED headlights is estimated to grow from 1.5 million to 5 million between 2013-2015 with the value of LED components growing from USD 130 to 300 million (Philips Lumileds)
▪ Government projects: The Provincial Electricity Authority is preparing to replace one million street lights nationwide with LED bulbs.
▪ Public & private infrastructure projects: From the construction of the new parliament house to stadium, residential, commercial, hospitality and entertainment projects such as CP All creates “7 Go Green” project and invest over 500 million THB to replace LED Light bulb in 7-Eleven throughout Thailand.
Government support policies & incentives
Through the Board of Investment, the Thai government offers a range of tax incentives, supporting services and import duty exemptions or reductions to an extensive list of promoted activities. EGAT has already initiated the Demand Side Management (DSM) Program since 1993. This program is designed to promote the efficient use of electricity in Thailand with the target to reduce the nation's energy consumption. One of DSM strategies focuses on promoting the use of high efficiency appliances in Thailand including lamps for lighting systems. After almost 20 years of the DSM implementation, EGAT has successfully persuaded consumers to use various kinds of high- efficiency lamps.
Thailand is also a part of the ASEAN Economic Community (AEC) along with nine other countries namely: Indonesia, Malaysia, Philippines, Singapore, Brunei, Cambodia, Laos, Myanmar and Vietnam. The aim of AEC for 2015 is to create a single ASEAN market with gross domestic product (GDP) of $2.5 trillion & trade of $1 trillion. So far, ASEAN overall has progressed to a level of 80% in terms of eliminating tariffs on goods traded within the region.