Uae led market

By Azhar Mohammed, Dated : 26/04/2014

United Arab Emirates Annual

Meeting 2014 April

Scope of Presentation

Analysis on increasing potential of LED luminaries in UAE market ,evolving trends and market scenarios for studying a prospective adoptability of LED Lighting business in HYDRATECH,Dubai.

By Azhar Mohammed,

Dated : 26/04/2014

United Arab Emirates

LED Luminary Market study in UAE

Objective

To Identify Define and Analyze factors influencing the LED luminary segment in UAE market.

Influencers (Variable/ Non

Variable)

Trend analysis

Market Understanding

( Competition study )

Market Entry

( Market opportunity/Threats/

Entry constraints )

Industry Specifics


Influencers and their trend

•To identify all influencing factors effecting the potential of LED luminary industry in UAE market. •To analyze the trend of 360 degree forces acting in the market

Social Economical

Legal Political

•Economy•Imports•FDI

•Political Stability•Foreign Relations


•Legal System•Legal reforms

•Demography•Education•Geography

Social

Demography•Population growth 2.87%.•Immigration rate is 15.1migrants/1000 population .•61.1% of age group 25 to 54 years•34.4% of age group 0-24 years

Education•Literacy rate 77.9 % average( India 61%)

Geography•Irrigated land 1000 sq KM from total area of 83,600 Sq KM. (population concentration)

Social Economical

Legal Political




“---------SOURCE(http://www.indexmundi.com/united_arab_emirates/population_growth_rate.html)



The growth rate is a factor in determining how great a burden would be imposed on a country by the changing needs of its people for infrastructure (e.g., schools, hospitals, housing, roads), resources (e.g., food, water, electricity), and jobs.”

EconomicalEconomy•GDP - per capita (PPP): $49,800 (2012 est.) •GDP growth rate-4.4% est 2012•Inflation 0.7%(est 2012)•UAE Lighting Industry : $ 336 Million (2013)•Expected growth : 15% over 2013

ImportsImports $220.3 billion (2012 est.) Imports ranking :25th by valueImport partnerIndia 17%, China 13.8%, US 10.5%, Germany 5.2%, Japan 4.2% (2012)Industrial production growth rate: 4.2% (2012 est.)

FDI 2013 : 12 billion USD2014 : 14.4 Billion USD

Social Economical

Legal Political




• http://gulfbusiness.com/2014/01/uae-attract-14-4bn-fdi-2014/#.U1jLSFWSzIc



• http://www.middleeastelectricity.com/en/IndustryNews/LightingIndustryNews/UAE-lighting-industry-to-grow-by-15pc-in-2014•http://www.bqdoha.com/2013/07/uae-growth-prospects-positive-says-imfsuffix_a

Projected growth rate of 15% for lighting industry for the year 2014 indicates a huge potential for LED market in UAE.The UAE’s short- and medium-term growth prospects are positive and external downside risks, while still substantial, have declined, according to an IMF country report. The non-oil economy is projected to expand by over 4 percent per annum.

http://www.middleeastelectricity.com/en/IndustryNews/LightingIndustryNews/UAE-lighting-industry-to-grow-by-15pc-in-2014

http://www.middleeastelectricity.com/en/IndustryNews/LightingIndustryNews/UAE-lighting-industry-to-grow-by-15pc-in-2014

Legal

Legal system•mixed legal system of Islamic law and civil law•Not submitted an ICJ jurisdiction declaration; non-party state.•Legislative branch elections: last held on 24 September 2011 (next to be held in 2015)

Legal reforms •Strong laws pertaining to development .Political reform drafted have strong inclination towards UAEs strong willingness to develop its economy- http://www.thenational.ae/business/industry-insights/economics/draft-law-outlines-insolvency-reform-for-the-uae

Social Economical

Legal Political





http://www.indexmundi.com/united_arab_emirates/legal_system.htmlhttp://www.greenprophet.com/2014/02/dubai-abu-dhabi-ban-high-energy-incandescent-light-bulbs/#sthash.z4Gjninm.dpuf


After July 2014, the United Arab Emirates (UAE), one of the world’s largest oil producers, will no longer import high energy incandescent light bulbs. And by the end of the year, it will be impossible to buy them

http://www.indexmundi.com/united_arab_emirates/legal_system.html


Political

Political Stability

•Political system: federation with specified powers delegated to the UAE federal government and other powers reserved to member emirates.•Political pressure group: Listing of political, social, labor, or religious organizations with leaders involved in politics, but not standing for legislative electionForeign relations •Stable relation with west and other GCC countries. Hosts UNDP in UAE.

Social Economical

Legal Political





http://www.indexmundi.com/united_arab_emirates/legal_system.htmlhttp://www.emirates247.com/business/uae-is-model-of-political-stability-think-tank-2011-09-06-1.417092


Strong political stability in UAE compared to other countries in GCC has lead to a convenient growth in economy after the winning of World 2020 Expo.The UAE has become a model of political stability at a time when some nations in the region are witnessing unrest despite the presence of a large foreign community in the country




360 degree 5 force analysis for determining Entry barrier

in UAE Market

LED luminary market in UAE is not new, there are numerous no of players in UAE . The potential of the market is observed by all aspirants. This exercise helps untie the factors effecting us in

the market.

Existing Competition

Threat from New entrants

Bargaining power of

Customers

Threats of substitute products

Bargaining power of Suppliers



•The players operating in UAE market create a barrier to entrance . Current players in the market is limited to meet the demand of luminaries in the market. In this scenario it will be easy to capture a market for Hydratech.

•LED lighting industry is leading its promises on Green lighting, Energy efficient lighting, Designer lighting and now it has entered into Industrial segment



Bargaining power of

Customers



Major Brands in UAE

•Osram-German •Havells Sylvania-India•OMS –UK•Hubbell –USA•Philips- Netherlands•Lucent-UK•Filix-USA•General Electric -USA

Major lighting retailers in UAE

•Huda lighting•Universal Lighting•Lite –tech Lighting•Led World•Nakshi•Chinmar Lighting•Cree Lighting

Construction sector

$ 44 billion awarded in UAE in 2013 $ 10 billion completed in 2013.$ 50 billion awarded in 2014

Only 11% of construction value is completed.

The huge growth rate in the construction sector has lead to an increased demand of electrical fittings leading to a increased no: of fit out companies popping up in the market . UAE government steps to restart the unfinished construction works has added fuel into the trend.

http://www.hadefpartners.com/News/pageid/120-137/default.aspx?mediaid=207


New Entrants

•A number of players has entered into Lighting industry in UAE in various segments and brands.•Government of UAE has regulated the standards required for lighting with collaboration with ESMA –Emirates Authority of Standardization and metrology



Bargaining power of

Customers



UAE certification for Lighting Im[ports

• Product certification for Direct Market Access-ESMA• Dubai Central Laboratory Certificate• Abu Dhabi Quality and Conformity Certificate(QCC)• Safety test report from Dubai Quality center

Entering into UAE is been regulated by UAE government.In spite of these regulations plenty of Lighting products are imported into UAE and are available in market.


Threat from substitute products

Government has brought standardized specifications for Lighting products but in UAE market alternate products with lower quality is also available .

Existing Competit

ion


Bargaining power of

Customers



Leading to high price of the LED lighting, low quality products which are not as per the UAE regulations are also available in the market. These materials have a lower lifespan .Government regulations has not yet taken a strong grip on these market. Abu Dhabi have already Standardized the interior lighting through ESMA


Few brands proposed

• VINled- India's 4th largest LED manufacturer• Lingman Lighting-Thailand• IST lighting Group-UK• Brillianz Lighting-UK


Appendix


Thank you

Uae led market

Devices & Hardware

Transcript of Uae led market