A report published by Lux Research says China’s light-emitted diode (LED) lighting market will more than double to $7.4 billion in 2017 from $3.1 billion, as ongoing urbanization, local energy savings targets and price cuts make the technology more appealing, according to Lux Research. Lux Research says both residential and commercial segments will drive LED lighting to a compound annual growth rate (CAGR) (compounded annual growth rate) of 24%, far outpacing the 5.6% CAGR for the broader lighting market. As a result, LED lighting will grow its share of the lighting market from 9.6% to 18%.

The residential segment shows fastest growth. The Chinese residential LED market will grow from $23 million in 2013 to $310 million in 2017, a CAGR of 92%, the highest among five market segments -– as average prices fall the fastest, from $6.02 per fixture in 2013 to $3.13 in 2017.

 “LED lighting has changed from expensive products outside the cost-conscious sweet-spot of Chinese buyers to value-adding solutions, gaining market share and realizing sustainable growth,” said Jerrold Wang, Lux research associate and the lead author of the report titled, “Running to the Light: Sizing China’s LED Lighting Market.” Details