AFRICA LED & OLED DISPLAYS AND LIGHTING PRODUCTS MARKET ANALYSIS

Africa LED & OLED Displays and Lighting Products Market (2017-2027)

Market Overview

A light-emitting diode (LED) is a semi-conductor light source that coverts electrical energy into light energy. When compared with conventional light sources such as incandescent lamps, LEDs are more efficient and last for a longer period of time. Furthermore, an organic light-emitting diode (OLED) also referred as organic LED is a light source that uses electroluminescent organic material between two conductors, which release light when it is induced with electric current. Generally, OLEDs are extensively used in digital displays. Moreover, active-matrix organic light-emitting diode is display device that typically finds applications in mobile device, smart watches, televisions, and laptops.

Africa LED & OLED displays and lighting products market is expected to account for US$ 1088.9 Mn by the end of 2019.

Market Dynamics- Drivers

Growing proliferation of smartphones in emerging economies, owing to rampant development of telecommunications infrastructure is expected to drive growth of the Africa LED & OLED displays and lighting products market during the forecast period. Various countries in Africa such as South Africa, Nigeria, Egypt, Senegal, Kenya, Ghana, and Tanzania are adopting ‘internet governance’. Moreover, mobile phone users are rapidly shifting towards smartphones, owing to cheap and easy availability, is expected to propel the market growth in the near future. For instance, according to GSMA Intelligence, Sub-Saharan Africa had 160 million smartphone users and is expected to reach 450 million by 2020. This is owing to rapid shift to mobile broadband network. According to the same source, as of June 2015, around 41 countries have 3G network, while 4G network is functioning in 23 countries.

Furthermore, growing expenditure on television services, owing to exception economic growth in emerging economies is expected to propel the Africa LED & OLED displays and lighting products market over the forecast period. Increasing demand for high-quality digital services coupled with rising number of TV broadcasters, and rampant growth new broadcasting technologies are expected to support the market growth in the near future. For instance, in 2016, Netflix Inc., a U.S.-based digital media provider, introduced its service in South Africa, with aim to service growing demand for TV in the region. Currently, the company offers SD, HD, and UHD resolutions.

Nigeria dominated the Africa LED & OLED displays and lighting products market in 2019, accounting for 23.8% share in terms of value, followed by Egypt and South Africa, respectively

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Source: Coherent Market Insights Analysis (2018)

Market Dynamics- Restraints

High cost associated with LED and OLED displays has shifted consumer preference towards LCDs. Although LED and OLED displays offer superior performance, consumers are choosing LCD due to its satisfactory performance at lower price. This, in turn, is expected to restrain growth of the Africa LED & OLED displays and lighting products market during the forecast period. Moreover, lack of awareness regarding benefits of modern lighting solutions among consumers is expected to hinder the market growth over the forecast period.

Market Opportunities

OLEDs are expected to pose conducive growth opportunities for market players. OLEDs offer flexibility, transparency, and surface light source. Key players in the market and startups are offering LED and OLED products, which in turn, is expected to pose excellent growth opportunities for them. Furthermore, proliferation of LED lighting products is increasing though its market share is less than fuel-based lighting system.  This offers excellent opportunities for LED lighting products manufactures. According to Lighting Africa, as of 2012, off-grid lighting products accounted for 4% with growth rate of 90-95% annually and sales of 4.4 million unit.

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Source: Coherent Market Insights Analysis (2018)

Consumer TV Displays segment of Africa LED & OLED displays and lighting products market is estimated to be US$ 239.1 million in 2019 and is expected to grow at a CAGR of 18.8% between 2019 and 2027.

Market Trends

There is common preference towards LED over OLED, owing to cost of OLED being substantially high compared to LED. Moreover, LED has longer lifespan when compared to OELDs. LEDs can deliver the same performance as of OLEDs at low cost, thus LEDs are expected to witness high demand in near future.

Furthermore, growing penetration of Chinese products has become a popular trend, owing to China emerging as Africa’s largest trading partner. According to Lighting Africa, as of 2012, around 90% of lighting products are produced and imported from China.

Market Segmentation

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Competitive Section

Key players operating in the Africa LED & OLED displays and lighting products market are OSRAM GmbH GE Lighting (General Electric Company), Cree, Inc., Sharp Corporation, LG Display Co., Ltd., Eaton (Cooper Industries PLC), Daktronics, Inc., Barco, SAMSUNG, and Luceco Ltd.        

Key Developments & Strategy

1. Key players in the market are adoption growth strategies such as mergers and acquisitions, in order to gain competitive edge in the market. For instance, in July 2016, OSRAM GmbH, acquired Novità Technologies, a manufacturer of electronic control systems for automotive lighting applications, in order to expand its specialty lighting business in the U.S. market. The company is involved various growth strategies such as capacity expansion, in order enhance its market presence
2. Major companies in the market are focused on various growth strategies such as entering to agreement, in order to enhance their market presence. For instance, in September 2015, GE Lighting and SST, Inc. entered into a memorandum of understanding (MoU), in order to integrate SST’s Shotstopper technology with GE’s intelligent LED street lights.