LED Lighting in The " Knee" of The Dance Market Ushered in The Golden Harvest Period

LED lamps

With green, low-carbon energy growing popularity of the concept of life , energy saving products increasingly attach importance to the community , as represented by the green with LED lighting for its outstanding advantages began to penetrate traditional markets and in the lighting field set off a new revolution. And China 's semiconductor lighting industry has become to grow stronger foundation for the development of change in the global lighting industry transformation and upgrading of one of the fastest developing area , with a . 2014 , Chinese semiconductor lighting industry is ushered outbreak inflection point, product prices continued to fall , the terminal market is ushering in an unprecedented period of growth opportunities .

2013 , the overall size of China's semiconductor lighting industry reached 257.6 billion yuan , an increase of 34 % compared to 2012 's 192 billion yuan , becoming in 2010 after the domestic semiconductor lighting industry faster year. Upstream epitaxial chip which reached 10.5 billion yuan , reached 40.3 billion yuan package midstream , downstream of the application of the scale exceeded 200 billion yuan , reaching 206.8 billion yuan .

Meanwhile, the development of the lighting industry is mainly affected by government policies , the manufacturing costs and end-user purchase intentions and other multi- factors. According to " China to phase out incandescent road map" , from October 1 this year , China will ban the import and sale of 60W and above ordinary incandescent lighting . Compared to conventional energy-saving lamps , LED lighting products more energy efficient, more environmentally friendly, so LED lamps to replace incandescent will have a broad market space. Meanwhile, the state support for energy-saving environmental protection industry , LED industry as a strategic emerging industries , LED lighting and more energy-saving advantages of its more prominent , its market prospects are also high hopes for the industry .

2013 light cost reduction and policy -driven dual role by , LED lighting products, rapid increase in penetration , market sentiment continues to increase. 2013 , China's domestic production of LED lighting products more than 810 million , the domestic sales of about 400 million , LED lighting penetration rate reached 8.9% in the domestic market increased by nearly 5 percentage points higher than last year's 3.3 per cent , especially the growth in the commercial lighting more obvious, according to incomplete statistics, in the field of LED commercial lighting fixture penetration has exceeded 12%.

Research Director Dr. Wu Mingming CSA noted that from August 2013 to March 2014 Taobao LED bulb price from 8.08 yuan / W down to 6.10 yuan / W, a drop of 24.5 percent , two bulb export price has dropped by 66 %, but from the data reflect the view, the price rate of decline is slowing down , the price war has obvious relief, but the price will further decline.

Plus, the multi-national joint propulsion ban incandescent and energy-saving policy of the Chinese government introduced a number , are favorable conditions for the development of LED lighting , and ten years, the average annual growth rate of 39% of Chinese output , the output value of 257.6 billion yuan in 2013 , initially formation of industrial agglomeration, four regions in 2013 LED lighting market started in the application output accounting for more than 1/3. Next, the Chinese LED industry will usher in a golden period of development.

On the one hand due to technological advances and mass production has brought the cost of components and application packages rapid decline , leading the LED lighting product sales prices gradually approaching the traditional lamp price.

According to the U.S. Department of Energy predicts that by 2020 LED chip costs 82 percent lower than in 2013 , 78% of the cost of reducing the LED package , 60 -watt LED chip cost level will be reduced 66% decrease in cost will be to promote the penetration of LED lighting products one of the main promotion.

On the other hand , continued investment in the development of government resources and related policies also promote the development of the market , 2012 was the peak of the world's first wave of incandescent ban , such as South Korea , Japan and other regions into a total ban on stage , in 2014 the European Union , the United States , China and other places are also expected to enter the mainstream ban incandescent stage , will again enhance the penetration of LED lighting .

CSA pointed out that in 2014 , China 's semiconductor lighting industry will continue to maintain rapid growth, the growth rate is expected to reach about 40%. Epitaxial chip link, starting with the full application of the market, in recent years, the accumulated investment in production capacity gradually released, epitaxial silicon production in 2014 , the output value will be significantly improved, output growth is expected to reach about 35 %. Packaging industry sectors more competitive , growth is expected at around 20% , more new packaging technologies and processes to compete . But LED packaging technology evolution , always focus on the end-use costs continue to drop this topic. In the application part , with the advantage of Chinese manufacturing , output growth in 2014 will exceed 50%.

In lighting applications, in 2014 , with the further implementation of national plans to phase out incandescent lamps , LED lighting will achieve explosive growth , leading Chinese LED application market , penetration speed, the overall penetration rate is expected to LED lighting is expected to reach 20%. Intelligent lighting will follow the wisdom of the city's construction and shine , wearable electronics, optical communications, lighting and other innovative applications of plant products are a market favorite . With the start of the LED lighting market demand volume and national policies have been introduced LED , LED industry is bound to accelerate the development of the market, China LED lighting industry will also usher in a golden harvest of market inflection point

LED Ceiling Play "Smart" Market Price Is "Warring States"

LED lamp

2014 , smart lighting popular, catch broke the lighting industry , and combined with the current hot LED lamps, by the industry 's attention. Guangzhou Guangya Network Technology Co., Ltd. Deputy General Manager Liu admits , intelligent lighting lighting industry in relation to life and death .

Almost all of the lighting companies are talking about intelligence. Some people say , do not do intelligent lighting business, only to be eliminated in the future trend of this era . The competition between the LED lighting business , will focus on how close to consumer demand , channel and corporate culture competition.

As time goes on , technology is gradually progress. The consumer view , intelligence is a symbol of lifestyle and humane operation. However, the current price of chaos , has become a stumbling block to the development of intelligent lighting . Indeed , the current rapid development of China's LED lighting industry but failed to build on a well-known brand in seeking a breakthrough towards the development of intelligent lighting or bottlenecks can help to achieve this breakthrough .

If we say that future of intelligent lighting will be a trend , then , LED lighting business as the first step, is committed to improving product intelligence level , so to win the initiative in the competition.

LED Bulb Filament Heat Just A Gust of Wind?

LED light source

Into 2014 , many manufacturers have increased the development and promotion efforts LED bulb filament as incandescent upgrade products , LED lamps have a filament bulb 360-degree angle of light, no glow no dark areas without glare, light efficiency and high color rendering index , but how far it can go remains to be tested time .

Recently, Zhejiang depth Optoelectronics Technology Co., Ltd. officially announced that it will fully develop, manufacture LED bulb filament , and the production base is located in Xianju County, Zhejiang Province, is mainly used for the production of LED filament bulb, and plans to build a country within two years LED bulb filament manufacturing enterprises.

Optical depth of the move caused widespread concern of the industry, everyone on the innovative design LED bulb filament affirmed when , but also attracted a lot of voices of doubt .

LED bulb filament in the end be able to go far ? It is a boom ? Only a transitional product incandescent to LED lighting ?

There is reasonable , I think , regardless of LED filament bulb in the end be able to go long , at least it is now on board the big stage nature of the industry has its value and significance.

As you know, in the past LED light source to achieve a certain degree of illumination and lighting area , the need to install optics lens and the like, but it will affect the lighting effects , reduce the effectiveness of energy-saving LED should . The 360 -degree angle of the filament bulb LED light, no glow no dark areas , high light efficiency, high CRI , no glare , to give us an unprecedented lighting experience .

Now, with the distance from the historical stage incandescent comprehensive shorter time , this year the industry has also set off a wave of heat LED bulb filament , the major lighting companies have to promote this product . The optical depth of just one of many companies . The product achieved good sales performance in Taobao, Alibaba online , Ya Puer , lighting and other companies in the state have also joined the sales team of new products, much of the original LED bulb, energy saving lamp , incandescent all Instead of momentum.

In this regard, Zhuhai Santa photoelectric official micro-Bo "LED filament bulb incandescent tungsten light to take us back to the era ? It's not just nostalgia . Really make LED bulbs to achieve a 360-degree light emitting week high voltage and low current calorie , high drive power efficiency , the glass enclosure is not hot , and the light fades too small. somewhat innovative products, she might be leading the trend began flooding a couple of months ? whole world to ban incandescent under the environment , LED bulb filament can chops , wait and see . "

In fact, as early as 2008 , Japan launched the first oxtail light from the LED lamp beads constitute imitation traditional incandescent filament , causing great concern to the industry , and the mass production technology . Followed by a filament light source LED candle lamp , bulb began to be more and more accepted by consumers .

"From a market perspective , LED filament bulb LED lamps while reducing costs, thereby enhancing the competitive advantage of LED lamps and traditional lamps , LED lighting in favor of ordinary families ; hand , LED bulb filament is completely meet the consumer demand for lighting customary understanding . . " For yourself and why consumers choose LED bulb filament , founder Zhang Zhen said optical depth , incandescent , energy saving lamps dominate the market impact today, as a revolutionary product , LED bulb filament will gradually increase to bring large , its market potential will become more apparent.

However , LED bulb filament can go far , there is time to be tested .

LED Light Source to Detonate The Third Revolution 10 Shares Enjoy The Concept of "Revolution" Feast

 LED lighting

According to 2007 United States enacted the Energy Independence and Security Act,since January 1, 2014, the U.S. market's best-selling 40-watt and 60-watt incandescent stop the sale. After the elimination of the incandescent lamp, the United States encourages the use of energy-efficient compact fluorescent lamps, LED lamps and other energy efficiency higher bulbs. LED lighting for the following incandescent, fluorescent light third revolution. Meanwhile, in Asia, South Korea, Thailand, the Philippines have also taken measures to promote the use of energy-saving light bulbs instead of incandescent bulbs. As countries begin a comprehensive ban incandescent light source will be fully opened to replace the 2014, LED lamps lighting market is expected to gradually occupied.
The current global LED industry has entered a rapid development period, in 2013 the global LED market size of $ 12.4 billion, in 2020 will reach about $ 150 billion size, compound growth rate of 42.6%. As one of the world's leading LED production and consumption country, with the outbreak of the policy of gradual progress and demand, China's LED industry is facing a major historical opportunity, will have a huge investment opportunity.


LED lighting outbreak trend, the Qilu Securities, said the bullish long-term investment value of the LED sector, the investment point of view divided into the following four areas:

First, look at the entire multi-LED plate, with a super value. In the long run, enhance lighting penetration will accelerate in 2013 ~ 2016 LED lighting penetration rate from 10% to about 50%, driven LED lighting industry chain into the high economic cycle.

Second, long-term LED industry chain upstream and downstream sectors most investment value: from the lighting industry value chain and the development trend, LED epitaxial chips currently accounting for about 70% of the profits, part of the package is about 10 to 15 percent, while the application link about 10 ~ 20%, front-end chip link in the value chain occupies a high added value.

Third, short-term point has been configured to present LED plate adjustment in place, buy arrival: 1, Taiwan 1 to February LED industry data than expected; 2, the traditional peak season from April to May; 3, 2014 and is expected to LED sector 2015 revenue growth of over 50% and 30%, the current corresponding to earnings ratio is only 30 times and 21 times.

Fourth, accelerate the industry consolidation, subdivision aspects of rapidly growing companies have the advantage of investment opportunities. LED significantly faster industry consolidation, industry concentration is gradually increased, with the core technology, channel edge, as well as leading industrial chain broken links will rapidly grow and scale advantages through extensive expansion.

LED Lighting The Way forward Both Opportunities And Challenges

LED lighting

Since 2013, LED lighting market crowded into the era of war, whether a veteran lighting companies or start-ups, are aimed at sharpening LED this big cake, a variety of means to snatch market are endless, which, price war undoubtedly one of the most effective and most respected strategy, and the price war not only in online trading, trading under the line of more flooding.

But thinking, LED lighting products is expected to implement the price back. From the cost side, with the chip, package and other technologies mature, natural product prices will lead to more close to the people; From a consumer perspective, LED lamps prices, especially in the first two years, the price of LED lamps is indeed too high, Let discouraged many buyers, leading the LED lighting market, "new and not busy" embarrassing situation, even the producers PAK forest on a rock in the summit also bluntly that they will not be willing to spend so "expensive" to buy a lamp lamps. Facts have proved that even the best products, high above the consumer price is also difficult to accept, so the price of LED lighting products also meet the actual market situation.

Many industry insiders predict that the price war or even the next few years will continue in 2014, which is the market advantage and eliminating the inferior and shuffling necessary process. Price war irrespective of right or wrong, moderately good, the short term may reduce corporate profits, but for the promotion of consumption and stimulate consumers to buy is indeed recipe. And as long as companies do their own position, from a technical and quality control and improvement, to develop a cheap, cost-effective products, enriched soft power and hard power, worry that the market is not favored.

LED Export Situation Is Becoming More Complicated

LED lighting

Overall, in 2014 China's foreign trade situation, both factors of production costs continue to rise, as well as the weakening of the traditional comparative advantage "WTO dividend" tends to subside and other more serious side, there are also constantly improve the level of trade facilitation, cross-border e-commerce the rapid development of new trade patterns and the state has adopted a series of policies and measures to promote the development of foreign trade and other positive side.

LED lighting favorable policies continue. In recent years, phase out incandescent lamps, coupled with a huge government subsidies for export of energy-saving lamps, LED lamps based industry companies, the market is a tremendous positive. After 30 years of development, China's LED industry has experienced buying the device, to buy chips, buy a wafer after the road has been achieved production of epitaxial wafers and chips, initially formed a relatively complete industrial chain, has become the world's major purchase LED products ground. With the expanding global LED outreach, China's LED lighting exports will face unprecedented opportunities.

LED lighting market penetration will be increased dramatically. According to global market research firm estimates that in 2014 the output value of LED lighting market $ 35.3 billion, an increase of 47.8% compared with 2013, 2014, LED lighting penetration rate will increase to 32.7%; And, in the past in the LED lighting market, because prices are Higher reason, the civilian market penetration has been low, and as LED lighting technology to improve and change their prices continue to move to the sweet spot. According to foreign UBS Securities noted that in 2014 the global LED lighting demand will surge 60%, with the largest increase household lighting, next year will be greatly increased 9 percent, well above the 37% and 57% of industrial commercial, where the application the most widely used light bulb and lamp penetration rates of 20% and 15%, a huge high-profile LED lighting market prospects civilian space.

Emerging markets LED lighting needs warming. According CPbay comprehensive data show that, due to vigorously promote environmental awareness and government, LED lighting penetration in the rapidly emerging markets such as Russia, India, Southeast Asia, Middle East, Africa and other countries or regions due to the high heat of infrastructure investment for LED lighting products demand showed a clear upward trend, or will become in 2014 the global LED market is another bright spot. In addition, China and ASEAN countries have bilateral trade agreements, exports to these countries to enjoy lower tariffs LED products even zero tariffs; especially the Russian demand for LED lighting is also very large, less its local LED enterprises, enterprise scale much technology is relatively backward, the demand for LED lighting is also larger.

LED TBT become the biggest obstacle. Europe and America as the world's major LED application base, LED standards, has been ahead of other countries and regions, technical and safety standards has been high demand in Europe and America, Japan and other developed countries as trade protection measures frequently used. Them through the development of technical regulations, safety standards and other ways to set up a demanding commodities market access conditions, has become the biggest obstacle to our LED lighting products of foreign exports.

Increase the risk of trade friction and other intellectual property disputes. In recent years, despite significant growth in the number of patent applications LED China mainland, but the position in the global LED pattern of intellectual property has not been fundamentally improved. Instead, the homogenization of competition caused by the LED intellectual property issues are intensified, industry dominance missing a growing problem, also increasing the risk of trade friction. Meanwhile, as China's rapid increase LED lamps exported annually exports between the increasingly intensified price competition in the industry is bound to take on China's LED products anti-dumping, countervailing and other trade sanctions after international markets become saturated, will increase trade friction risk.

Export Prospects Bright LED Lighting Industry Preoccupied Immature

LED lamp

2014 China's foreign trade situation, both factors of production costs continue to rise, as well as the weakening of the traditional comparative advantage "WTO dividend" tends to subside and other more serious side, there are also constantly improve the level of trade facilitation, the rapid development of cross-border e-commerce and other new trade the state has adopted a series of policies and measures to promote the development of foreign trade and other positive side. Therefore, the combination of the status quo of China's LED industry development, comprehensive judgments, our 2014 LED lamps export trade situation facing slightly better, both favorable factors, there are also disadvantages.

U.S. Government To Support LED Efforts To Increase

LED lighting

2014, the United States and Europe will gradually disable 40W-60W incandescent bulbs. This policy has resulted in LED lighting products have the opportunity to be more widely used, and stimulate the global LED lighting manufacturers to speed up production and further improve LED lighting penetration.


Right now the U.S. government is gradually increasing the intensity of the LED lighting support, through increased with the "Energy Star" certification of lighting products subsidies, prompting price drop of LED lamps. U.S. "Energy Star" program was introduced in 1992, aims to guide consumers to choose energy-efficient products. Purchase "Energy Star" products, consumers will enjoy the project to be tax cuts or direct subsidies and other benefits.
In this context, the U.S. production of Commerce sharp LED (CREE) and other companies are very positive about the development of LED lighting market in 2014, and sales are expected to grow alternative lighting will become the next focus and momentum.

Cree is the largest LED manufacturers, founded in 1987, 1993 and listed on the Nasdaq Stock Market. Its lighting products in a unique and advanced materials technology white technology industry in a leading position in the world. Cree will be released on Jan. 21 quarterly earnings report, the company expects demand for LED lighting by strong boost on-quarter revenue will increase to 4-4.2 billion, an increase of 24%, gross margin reached 38%, compared with increased by 1.8 percentage points from a year ago. Cree stock price over the past year has risen 85%, the current market value of $ 7.5 billion.

In the relatively mature markets of Europe, although no large-scale LED industry subsidies, but the local high tariffs, making commercial lighting and outdoor architectural lighting applications scenarios there is a continuing demand. Industry insiders estimate that in the coming years with a comprehensive ban incandescent policies affect the fermentation, the market will continue to show steady growth.

Europe's leading LED lighting company headquartered in Munich, Germany, including Osram (OSRAM). The company was a wholly owned subsidiary of Siemens, Siemens in July last year to leave the system of independent development, and its products are widely used in public places, offices, factories, household and automotive lighting in all areas. The company's shares listed in Frankfurt rose by 94 percent over the past year.

LED Replacement Tide Taimukaiqi, Gradually Speeding Up The Process of Market Alternatives

LED lighting

As environmental pollution is increasing,LED lighting technology as a new generation has become the focus of concern in today's global society. With the LED luminous efficiency and lifetime upgrade, coupled with energy-saving, energy-saving and environmental advantages gradually significantly, LED replace tide Taimukaiqi.

LED European Markets

From 2014 onwards, European countries began phasing out the civilian market, the largest amount of 40-60W incandescent bulbs, as the popularity of LED lighting products provide a favorable opportunity. It will also stimulate the global LED lighting manufacturers to accelerate the pace of LED lighting layout, further pushing up the global LED lighting penetration. U.S. government efforts to support LED lighting is gradually increasing, and so the number of subsidized Energy Star lighting is growing rapidly, prompting further reduce the price of LED lamps. CREE and other manufacturers are optimistic about 2014 LED lighting market development, and sales growth is expected to become the replacement of lamps next business growth priorities. In Europe, the market is relatively mature, although did not see massive subsidies, but its high price and the difference in light culture, making commercial lighting and outdoor architectural lighting applications persistent situational demands. The impact of the next few years with a total ban on incandescent light bulbs policies fermentation, estimates the market will continue to show steady growth.

LED Japanese Market

As the field of industrial power LED, LED industry in Japan in promoting world development process also played a very important role. As early as 14 years ago, Japan has started to promote the development of semiconductor lighting technology and industrialization of the "21st Century Light Plan" is one of the oldest countries in the world started to support the LED industry policy. In recent years, the Japanese government support,LED lighting industry is growing rapidly. Meanwhile, Japan domestic energy awareness is high, especially after the Great East Japan Earthquake occurred more than two years ago, the Government proposed a "low carbon society" (carbon reduction) targets. Including LED lighting products at a rapid pace popularity, becoming energy-saving products representative.

In addition, the LED in emerging markets such as Brazil, India, Vietnam, Russia and other countries and regions, also unveiled a variety of planning and draft, support the development of LED lighting industry. These areas demand for LED lighting products showed a clear upward trend, LED lighting market is showing rapid growth, especially in the LED public lighting and commercial lighting market is more obvious.

According to statistics, the next 1-3 years, a large number of LED lighting market demand will be released. Strongly support policies directly contributing to the rapid growth of the LED lighting market.

LED Packaging Companies in The Market Positioning Strategy

"LED package, the future will vary from the lighting is concerned, due to the

LED lighting 

development of technology, the evolution of the market, there will be integration and change , which can not be very simple,like the traditional sense of the upstream division,midstream and downstream ."Guowei Xiao  as a representation of the upstream suppliers, will not do LED lamps.We will be closely LED lamps loyal partner in the future .

Guowei Xiao thinks that the whole future development, in 2020 , especially before 2017 , with the push of technology, packaging technology prices will continue to decline. In the next few years , LED chip packaging technology, the next few years with white LED chip packaging technology will be integrated technology evolution and vertical integration . These techniques become directly affect the LED Board product form, performance indicators, digital, intelligent,application, significant differences . The importance of system integration have become increasingly prominent.The relationship between the so-called midstream, downstream , upstream will eventually become such a smile curve , the upstream device will become part of the supply.Midstream is assembled lamps , lighting design is the downstream channel , the system design .

Packaging companies in terms of the two channels,one to do the upstream epitaxial chip and second,downstream,making lamps.But part of the package is not going to disappear and in the process will evolve through a number of updated features occur.

"LED technology vertical integration of the industry itself,but also through cross-industry,cross-disciplinary integration to achieve industrial leap, get rapid development ."Guowei Xiao  expressed optimism that the new LED lighting systems,LED lighting products the next 3-5 years will gradually integrate digital,intelligent systems , intelligent lighting, will create a huge market beyond the traditional lighting.