The LED lighting industry will expand rapidly for a long time

Looking at specific alternative products, it is highly probable that LED lighting will first replace halogen lamps in the future. At present, halogen lamps are mainly used in commercial facilities such as shops. If they are replaced with LED lighting fixtures with better luminous efficiency, energy consumption can be greatly reduced. Electricity costs can be reduced, that is, operating costs, and the sum of initial costs and operating costs can be reduced. After 2-4 years, it will be cheaper than existing light sources. On the other hand, the Ministry of Science and Technology has carried out the project of "ten city, ten thousand and ten thousand" semiconductor lighting applications throughout the country. As a key promotion product, LED street lamps have also become a hot spot in the market. At present, the Ministry of Science and Technology has identified 21 cities in Mianyang, Chengdu, Chongqing, Yangzhou, Xiamen, Shijiazhuang, Baoding, Xian, Tianjin, Nanchang, Weifang, Zhengzhou, Wuhan, Shenzhen, Dongguan, Fuzhou, Dalian, Harbin, Ningbo, Hangzhou and Shanghai. Pilot cities for engineering. In addition, local governments have also developed related semiconductor lighting development plans. Due to the high cost of LED lighting and the lack of standards, the need to improve heat dissipation, and the need to redesign the power supply, it is difficult to achieve scale through its own market development in the short term. This time through the strong support of national and local governments, LED lighting market is expected to enter a new development process.

From the corporate point of view, due to high technical requirements for high-power products, European and American manufacturers Cree, Osram, and Lumileds have a strong competitive advantage, and Chinese Taiwanese companies occupy a mid-range market with a good product cost ratio. Packaging companies such as Foshan Guoxing have also made considerable progress in high-power products in recent years.

It is expected that China's LED lighting market will show a rapid development trend from 2009 to 2013. From the point of view, the annual average compound annual growth rate of the LED market for street lamps will reach 38.8%. The annual LED market scale for landscape lighting is average. The compound growth rate will reach 21.7%, which is higher than the average compound annual growth rate of the market. The rapid development of the lighting market will directly drive the market demand for high-power LED products of more than 1W.

At this stage, the cost of LED lighting fixtures is 5-10 times that of fluorescent lighting fixtures and HID (Xenon lamp) appliances. The reason for the high cost is the price of the unit's brightness and the peripheral components. The price of white high-power LEDs is much higher than that of traditional lighting fixtures. At the same time, the lighting products also require peripheral components such as heat sinks, power supplies, and lenses. In the LED lighting market, landscape lighting products started earlier due to their low sensitivity to price. From 2004 to 2008, the annual average compound annual growth rate of China's landscape lighting LED market reached 42.8%. With the continuous decline in the cost of each lumen and the government's vigorous promotion, the pace of LED lighting market continues to accelerate, and the area of ​​penetration has gradually expanded.