Panasonic, one of the leading manufacturers of LED lighting products, announced in 2014 that it would close its LED lighting factory in Indonesia, which produced color display tubes for computer monitors and color picture tubes for televisions1. The decision was based on the deteriorating import earnings caused by the depreciation of the yen and the increasing competition from cheaper products sourced from China and Poland1. The closure of the factory, which exported 80% of its output to Japan, meant that Panasonic would move all of its LED lighting production for the Japanese market back to Japan1.
The closure of Panasonic’s LED factory had significant implications for the outdoor lighting industry, both in Japan and globally. Here are some of the main effects of this move:
Reduced supply and increased prices of LED lighting products in Japan. Panasonic was the market leader in Japan for LED bulbs and fluorescent lamps, with a 46.2% share in 20142. By moving its production back to Japan, Panasonic reduced the supply of LED lighting products in the Japanese market, which could lead to higher prices and lower availability for consumers and businesses. This could also affect the demand for outdoor lighting projects, such as street and roadway lighting, landscape lighting, and public area lighting, which rely on LED technology for its energy efficiency, long lifespan, and environmental benefits.
Increased competition and innovation in the global LED lighting market. Panasonic’s decision to close its LED factory in Indonesia was partly driven by the fierce competition from other LED lighting manufacturers, especially from China and Poland, which offered lower prices and higher quality products1. This could spur more innovation and development in the global LED lighting market, as other players try to gain an edge over Panasonic and capture more market share. This could also benefit the outdoor lighting industry, as more LED lighting products with improved features, such as color temperature, brightness, dimming, and smart control, become available and affordable for various outdoor applications.
Greater awareness and adoption of LED lighting technology for outdoor lighting. Panasonic’s move to close its LED factory in Indonesia also highlighted the advantages of LED lighting technology over traditional lighting sources, such as HID and halogen, for outdoor lighting. LED lighting offers superior performance, durability, and efficiency in outdoor settings, as well as reduced maintenance and environmental impact3. According to a study by the Freedonia Group, LEDs for outdoor, street and roadway applications were expected to see some of the fastest growth in the professional lighting market, rising from sales of $135 million in 2012 to a projected $590 million in 20173. This could encourage more cities and municipalities, as well as residential and commercial customers, to adopt LED lighting technology for their outdoor lighting needs.
In conclusion, Panasonic’s LED factory closure in 2014 had a significant impact on the outdoor lighting industry, both in Japan and globally. It affected the supply and prices of LED lighting products in Japan, increased the competition and innovation in the global LED lighting market, and raised the awareness and adoption of LED lighting technology for outdoor lighting. As LED lighting technology continues to evolve and improve, it is likely that it will become the dominant choice for outdoor lighting in the future.
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