Year-End Review | Analysis of Trends in the ASEAN Market for Chinese Lighting Companies in 2024
The past year, 2024, was filled with both surprises and challenges, but above all, it reflected the industry's continuous pursuit of future aspirations.
In recent years, with the advancement of China's Belt and Road Initiative, “going global” has become an inevitable choice for lighting enterprises. Across the world—whether in the neighboring Asia-Pacific region, the distant markets of Europe and the Americas, or the high-potential Middle East and Africa—Chinese lighting companies have been expanding their presence. However, in terms of market attractiveness, the Association of Southeast Asian Nations (ASEAN) stands out as a prime destination, offering a strategic and accessible opportunity for China's lighting industry.
So, which ASEAN countries were particularly favored by Chinese lighting companies in 2024? What strategies did they adopt to establish a foothold in these markets? Let's dive into the key trends and insights from the past year.
Vietnam: A High-Attraction Investment Hub, Most Favored by Chinese Lighting Enterprises
As one of the ASEAN nations sharing a land border with China, Vietnam has long been influenced by Chinese culture and maintains frequent economic and cultural exchanges with China. This geographical and cultural advantage makes Vietnam a natural bridgehead for Chinese lighting enterprises expanding into the ASEAN market.
According to authoritative statistics, Vietnam's 2018-2030 Smart City Development Plan identifies urban smart lighting as a core initiative. Currently, lighting accounts for 25% of the country's total electricity consumption, with an annual market demand growth rate of approximately 7%.
In 2023, Vietnam's LED lighting market was valued at $692.9 million, and it is projected to reach $1.2 billion by 2032, with a CAGR of 6.1% from 2024 to 2032. However, domestic lighting supply covers less than 50% of the demand, while imported smart lighting products account for over 75%.
Vietnam is actively transitioning from incandescent and compact fluorescent lamps to LED lighting, driven by government policies promoting energy-efficient solutions. These policies have shown significant results, accelerating LED adoption nationwide.
For Chinese lighting companies, Vietnam presents a prime opportunity to establish a foothold in the ASEAN market, leveraging strong demand, government support, and a growing preference for smart lighting solutions.
Crystal-Optech Vietnam Base (Phase II) Tops Out
Driven by favorable market trends and government support, an increasing number of Chinese LED and lighting enterprises have been expanding their presence in Vietnam. 2024 witnessed the most dynamic investment activities by Chinese lighting companies in the Vietnamese market.
Several leading Chinese enterprises, including ZhaoChi Co., GigaDevice New Energy, and Crystal-Optech, have made significant progress in establishing production bases in Vietnam. Taiyo Yuden has prioritized the expansion of its Vietnamese factory as a key overseas investment for 2024. Meanwhile, ZhaoChi Co. announced a new factory investment of 170 million RMB, and Lianyuan Co. established its subsidiary, Lianyuan Technology, further injecting nearly 200 million RMB into its Vietnam operations.
These developments reinforce Vietnam’s position as a critical milestone in the global expansion strategy of Chinese lighting enterprises.
Thailand: A Market with Infinite Potential, Favored by Chinese Lighting Enterprises
As the second-largest economy in ASEAN, Thailand does not share a border with China but remains closely connected through the Mekong River and frequent cultural and trade exchanges. Given this geopolitical and economic backdrop, Thailand is regarded by China's lighting industry as one of the most promising global investment destinations.
According to authoritative statistics, China’s lighting product exports to Thailand reached $1.07 billion in 2023, accounting for 2.2% of total exports. While this share is relatively modest, Thailand's accelerating urbanization and government-led infrastructure projects have significantly boosted demand for city lighting solutions. Moreover, the Thai lighting market remains highly dependent on imports, presenting a tremendous opportunity for Chinese lighting enterprises to expand their presence.
Sunrise Opto's Thailand Production Base Officially Opens
In recent years, numerous Chinese LED and lighting enterprises have been actively expanding their presence in the Thai market, making significant progress. This trend has further accelerated in 2024.
Lantech Smart’s Thai subsidiary successfully broke ground at the 304 Industrial Park in Prachinburi, enhancing its overseas supply capabilities and service quality. AOTO Electronics established a Thai branch, strengthening its global business expansion. Sunrise Opto, a wholly owned subsidiary of Marlum Technology, officially launched its production base in Thailand, creating new momentum for its overseas growth.
Malaysia & Indonesia: Emerging Markets with Unlimited Opportunities for Chinese Lighting Companies
Unlike most ASEAN countries on the Indochina Peninsula that share land borders with China, Malaysia and Indonesia are separated by the sea. As a result, their lighting markets have historically been less active compared to Vietnam and Thailand.
However, market analysis indicates that with favorable policies, Malaysia’s LED lighting sector is rapidly replacing traditional lighting products. Despite this growth, the market started relatively late and still heavily relies on imports and foreign investments. This presents a significant opportunity for Chinese LED and lighting companies to establish a strong presence.
HIGOLD’s Flagship Store & Chinese Smart Lighting in Malaysia
In 2024, several Chinese LED and lighting companies made significant moves in the Malaysian market. In December, HIGOLD Group grandly opened its flagship store, marking a shift from "product export" to "brand export."
That same month, Yangzhou Fama Intelligent Equipment Co., Ltd. from Gaoyou successfully shipped streetlights to Malaysia. This milestone pushed Gaoyou's streetlight industry’s foreign trade sales past 5 billion yuan, reinforcing China’s Belt and Road Initiative with a solid foundation.
Throughout 2024, Chinese LED and lighting companies made few large-scale strategic moves in Indonesia. However, leading brands like Opple Lighting, Xiaomi Yeelight, NVC Lighting, and Sunlight Lighting have continuously increased their investments in the Indonesian market. This highlights the country’s strong appeal to Chinese lighting enterprises. Looking ahead, Indonesia is expected to become a key hub for R&D and production bases for Chinese LED and lighting manufacturers.
While Laos, Myanmar, and Cambodia currently have lower demand for lighting products, they still offer niche market opportunities for small and medium-sized Chinese LED/lighting enterprises. A notable example is Freedom Lighting, which established a branch in Laos, showing the potential for business expansion in these regions.
Outlook for 2025, as China’s trade cooperation and free trade zone development continue to deepen, an increasing number of domestic LED and lighting companies will establish a stronger foothold in ASEAN markets, opening new avenues for international business growth.
