작성일자: 2014.2.19

작성자: 프라하 무역관 Mr. Martin Jirovec, 박정현 (jhpark1@kotra.cz)

 

 

1. Demand Trends

 

 ○ The market of LED street lights is at the beginning stage. First pilot projects have been launched just few years ago (from 2009).

 

 ○ The street lights market is preparing for significant investments. Municipalities would have to renew lighting system within several years and LED lights represent opportunity for costs reduction and apply for EU funds. Municipalities have started to work on market analysis of appropriate light sources for public lightning. The key purpose is to evaluate the opportunity to implement LED lights in terms of public needs. The analysis should also provide cost break down of lightning renewal and investments strategy followed by maintenance costs where funds are increasing.

 

 ○ As the prices of LED are decreasing the demand is increasing. Still the sodium lights often used or replaced and spread of LED public lights should come in the near future as the lights will come to the edge of its lifetime. The most common street lights have 70 W power consumption and there are approximately 20,000 public lights (approx. half of total public lights). Standard range among street lights is 30~40 meters.

 

 ○ There are already 40~50% of standard street lights (high-pressure sodium lamps) that are nonconforming and about half of lights will reach its lifespan soon, 10% within 5 years. For older types of lighting fixtures is not beneficial to be repaired due to non-existent spare parts, burned refractors and broken diffusers. These problems will affect mainly municipalities up to 20,000 inhabitants. Municipalities have start to think how to save money, including operation cost reduction through LED street lamps which represent significant sum in a budget. LED street lamps represent interesting investment within short ROI if prices would continue to decrease. Standard protection IP 66 and controlled breathing technology, adjustable (positionable), guarantee approx. 15 years to end customer - declared by manufacturer.

 

 ○ Currently the demand is focused on standard lamps for municipalities and its streets. There are several types of streets described by norms. The highest requirements are for the roads where vehicles moves over 30㎞/h; the opposite are ways type CE (for walking and vehicles moving up to 30㎞/h). CE type has lowest criteria (maintained illuminance 7.5 lx with uniformity 0.4 - that means the lowest luminance cannot fall below 3 lx). Some municipalities change the marking of a street because of design that leads to lower requirements and therefore other LED lights could be used (eg. park lights instead of technical LED lights).

 

Growth rate & Market size of LED lights during the past 3 years

         (Unit: US$ thousand, %)

2011		2012		2013 (I-XI)
Market scale	Increase rate	Market scale	Increase rate	Market scale	Increase rate
202,900	28.26	219,121	7.99	216,503	-1.2 (y-y)

 

 ○ The market has stagnated as the economic crisis has influenced the whole nation. Municipalities have to secure money to run regular operations and reconstructions have been postponed.

 

 ○ Forecast in demand

  - Local lighting infrastructure is in very bad condition and repair or replacement is inevitable in few upcoming years. The public lighting sector becomes very perspective and many local companies have started to search for suppliers of LED street lights. The main wave of reconstructions and renewal would come in the near future (up to 5 years). Brands that would have references would have advantage.

  - The area of maintenance of public lighting has become more an industry that is sourced - delegated management of public lighting - long-term contractual relationship, which consists of the transfer of the administration, operation and maintenance of public lighting to the contract partner.

  - Willingness to reduce energy consumption and minimize maintenance costs. The cost benefit analysis has proved the benefit of LED public/street lights that are more expensive in the initial stage (purchase) though the maintenance costs and especially energy consumption are significantly lower (savings up to 80% of energy). The price of energy would be one of the key fact for LED lights spread.

  - New innovative technologies and approaches to public lightning and lightning itself (intelligent lighting, central switching, LED lights).

  - Subsidies - grants from EU, Ministry of Environment or Ministry of Industry and Trade to improve the efficiency and cost-effectiveness of public lightning.

 

 

2. Import trends & Tariff rates

 

Import of LED street light HS Code 940540

          (Unit: US$ thousand, %)

2011		2012		2013.1~11
Import	Growth rate	Market size	Growth rate	Market size	Growth rate
97,815	19.82	105,335	7.69	102,234	-2.95

Source: Czech Statistical Office

 

Top 10 export countries (HS Code 840219)

                                                                                      (Unit: US$ thousand, %)

Rank	Country	Amount			Share			Change 13/12
		2011	2012	2013	2011	2012	2013
-	Overall	97,815	105,335	102,234	100	100	100	-2.95
1	China (Peoples Republic of)	26,663	40,352	41,375	27.26	38.31	40.47	2.53
2	Poland	16,129	19,011	17,478	16.49	18.05	19.05	-8.17
3	Germany	12,325	15,219	13,528	12.60	14.45	13.23	-11.12
4	Italy	3,399	4,174	4,247	3.47	3.96	4.15	1.74
5	Malaysia	164	4,053	2,738	0.17	3.85	2.67	-32.45
6	Slovakia	13,021	2,963	2,310	13.31	2.81	2.25	-22.04
7	Netherlands	1,267	1,732	2,026	1.30	1.64	1.98	16.97
8	Switzerland	1,115	913	1,969	1.14	0.87	1.92	115.66
9	South Korea	240	2,531	1,893	0.25	2.40	1.85	-25.21
10	Ireland	2,687	1,708	1,749	2.75	1.62	1.71	2.40

 

 ○ Tariff Rate: 0% preferential tariff (third countries 4.70%)

 

 ○ VAT: 21%

 

 

3. Competitive Trends

 

 ○ The price is definitely one of the most important decision criteria tough the progress in development could make new competitive advantages. The price is continuously decreasing - currently low quality lights can cost about US$ 700 on the other hand high quality lights approx. US$ 1,800

 

 ○ High light effectiveness (over 70lm/W), better materials and improved cooling systems (prolonging lifespan), surface treatment to increase the light reflectivity - from varnishing (not demanded) or matt, polished aluminum to plated aluminum (highest reflectivity 72~90%), lifespan more than 20 years, sensors for switching light on/off or dimming.

 

 ○ Improving coolers in lights and control units to increase the number of diodes in a light. Improvement of light parameters - improved LED chips output for less energy.

 

 ○ Design (shape) improving the light distribution - mirror reflecting materials or radial tiling (faceted) + diffuser design (convex, refractor) and material (tempered glass, anti-reflex tempered glass, polycarbonate and PMMA - polymethylmetacrylate), possibility to change position of light and refractor, one way membranes (water vapor), IP protection and so on.

 

 ○ Specialized lights for various segment (bicycle roads, monuments, street, public space etc.) + design of the light itself - decorative (for public purpose) plays key roles especially in the municipalities where architecture is important (eg. UNESCO heritage etc.).

 

 ○ There are several companies that have significant influence through the association for public lighting development.

 

 ○ Municipalities have made pilot projects with strong brands like Phillips that have provided special financing.

 

 ○ Marketing costs are important and a supplier can be asked to provide some support to a dealer/ distributor to start communication with potential buyers, prepare materials in local language etc.

 

 ○ Very important is to have a reference where testing and measuring can be realized that would persuade other end-customers that the product fulfills stated criteria. The reference and feedback from operator of already built project is important part and recommendation spreads quickly among customers.

 

 ○ Local producers offer prolonging of warranty or special actions (price) on models. The marketing is also based on recommendation and possible margin in terms of new contract. Some companies offer special payment conditions if the company provides maintenance also.

 

 ○ Chinese producers have enter the market and offered very low price for reasonable quality. Local distributors are persuaded other LED lights with no brand would have harder position because of no reference that influence the final decision if the price is settled higher.

 

 

4. Quality certification system

 

 ○ Most important: Technical standard CSN EN 13 201 (Street lights - road lighting)

 

 ○ Technical standard CSN EN 36 0411 (Roads and highways lights), Technical standard CSN EN 36 0410 (Local roads lights), Technical standard CSN EN 36 0061 (railroad areas lightning), TP 98 (technical requirements (tunnels), CSN 33 2000-7-714 electric-technical Electrical regulations - Electrical equipment. Part 7: Special Purpose Equipment and Special Buildings, Part 714: Equipment for outdoor lighting.

 

 ○ Important acts and regulations - act 481/2008 Coll. on technical requirements on products, regulation 168/1997 Coll. on technical requirements on electric low voltage devices and 616/2006 Coll. technical requirements on products in terms of electromagnetic compatibility, notice 137/98 Coll. general technical requirements on construction and several other general regulations

 

 ○ Technical standard CSN EN 12464 (Light and ligthing - work space) subsequently CSN EN 12193 (Ligthing at sports facilities)

 

 ○ CE certificate - regulation 128/2004 on technical requirements on construction CE equipment

 

 

5. Other

 

 ○ EU funds - National program EFEKT (energy savings and usage of renewable energy sources).

 

 ○ Public procurements (projects) are designed that the price is the most important criteria if required conditions have been passed.

 

 ○ According to act 128/2000 Coll., municipalities are responsible for establishing and operating of public lighting (often provided by third party).

 

Distribution application plan