Impact of COVID-19 on the LED Drivers Market
The COVID-19 pandemic has rapidly spread across the globe. It has adversely affected the semiconductor industry owing to the partial shutdown of manufacturing facilities, which has led to a significant downturn in production. The outbreak of COVID-19 has also disrupted supply chain activities and created a shortage of shipping capacity. China is a hub for the production of raw materials; however, the spread of the pandemic from China has impacted export activities. Besides, various manufacturing companies are shifting their production facilities to other countries from China. The lockdowns initiated by the governments of most countries have adversely affected manufacturing activities as well as the demand for semiconductor devices, which, in turn, is hindering the growth of the LED drivers market. The primary factors responsible for the growth of the market include the rising demand for energy-efficient lighting systems, the adoption of LED lighting, and an increasing number of smart buildings. Additionally, the growing use of LED light in applications such as industrial, automotive, and horticulture has also led to an increase in product demand. However, the slowdown in operational activities in these industries is hampering the growth of the market.
The governments of various countries have initiated smart-city projects to develop advanced products as well as sustainable living spaces. Sustainable lighting helps in such projects. However, the spread of the pandemic is expected to raise the prices of LED lights and lamps owing to the increasing costs in the logistics chains. For instance, Signify Holding, one of the manufacturers of LED lighting, has notified its customers in the U.S. that the COVID-19 pandemic had led to considerable additional costs in its logistics chain. As a result, the company is increasing a 3% temporary charge on its LED electronics, which also includes emergency products and lamps. The effect of the pandemic is expected to be continued post the lockdown period, owing to which the market is expected to face challenges caused by COVID-19.
Lighting Sales by Type from 2015 to 2019