News

Shanghai, May 4, 2025 — In the first half of 2025, China’s lighting industry navigated a complex global trade landscape marked by shifting demand and geopolitical pressures. 
Preliminary data from the China Lighting Association reveals that Q1 2025 lighting product exports totaled $11.8 billion, an 8% year-on-year decline, though the contraction narrowed by 12 percentage points compared to the first two months of the year.  

Key Export Trends  
1. Market Diversification: While traditional markets like the U.S. and Europe faced downturns (exports to North America fell 5% and to the EU by 0.2%), ASEAN emerged as a bright spot, with exports surging 26% to $2.6 billion. The Belt and Road Initiative (BRI) markets accounted for 45% of total exports in 2024, underscoring their growing significance.  
2. Product Shifts: LED modules continued to dominate, with Q1 exports soaring 120% in volume despite a 52% price drop due to oversupply. Meanwhile, traditional electriclight source exports declined sharply (e.g., fluorescent lamps down 16%).  
3. Tariff Pressures: U.S. tariffs imposed in February 2025 (ranging 12%–47.5%) impacted $2.6 billion of Q1 exports to the U.S., driving firms like Minbatt Optoelectronics to accelerate Southeast Asian production shifts.  

Corporate Strategies  
1. Supply Chain Relocation: Firms such as TPI Lighting and Minbatt expanded capacities in Vietnam and Malaysia to mitigate tariff risks and align with regional trade agreements.  
2. Innovation-Driven Growth: Companies like Signify prioritized smart and elderly-friendly lighting solutions, launching the Philips LumCare series tailored to China’s aging population.  
3. Digital and Green Transition: Exporters like Zhejiang Minglei Tools leveraged digital upgrades and eco-designs to penetrate European markets, aligning with EU sustainability standards.  

Policy Support  
The Chinese government bolstered export resilience through tax incentives for cross-border e-commerce and overseas warehousing, while industry associations facilitated global exposure via trade fairs like the Frankfurt Lighting Show and Canton Fair.  

Outlook  
Despite Q1 challenges, analysts anticipate stabilization in H2, driven by diversified markets and innovation. The sector’s pivot to high-value segments (e.g., smart lighting, automotive LEDs) and BRI partnerships is expected to sustain long-term resilience.  

Data Sources: China Lighting Association, Customs Statistics, Corporate Disclosures.  
  
For further details, refer to official reports from the China Lighting Association .