2011 China LED industry will be a boom

Driven by government support and new applications, in 2011 China's LED market will grow from $4 billion 700 million last year to $5 billion 800 million, an increase of 23%.

As more widely used in LCD TV and street lighting, LED has become a popular product in China, but also a very attractive investment area. In addition, the government's support for the industry seems to be producing results. China's LED market is expected to reach $6 billion 900 million next year, to $11 billion 100 million in 2015, 2010-2015 compound annual growth rate of 17.7%.

China's LED market covers a wide variety of applications, including LED displays, traffic lights, car lights, LCD backlight, cell phone keypad, digital camera flash, decorative lighting, street lighting and general lighting.

Street lamps will be the largest application area, this year will reach $1 billion 500 million, is expected to reach $1 billion 800 million in 2012. Due to the large size of LCD TV and notebook computers using LED, LCD backlight market will also usher in strong growth in 2015 sales will grow from $713 million this year to $1 billion 800 million.

In the medium and long term, driving a new factor in the growth of the LED industry will be the general lighting market. In view of the global trend of reducing carbon emissions, China's demand for LED in the field of general lighting will be very strong. LED low power consumption, and environmental protection. IHS iSuppli's data show that this year, LED shipments in the field of general lighting will account for 15.5% of the overall LED market.

Although LED is relatively prosperous in China, but compared with the United States and Taiwan, China's LED industry is still in its early stages. China is lagging behind in the field, including technical backwardness and the lack of experienced managers and R & D engineers. In addition, China's lack of intellectual property rights in the core areas such as LED wafer and upstream areas, but also a serious problem.

However, Chinese LED manufacturers can get sufficient funds from local and central government, which will help domestic enterprises to occupy the majority of China's LED market. So far, the local government to buy MOCVD equipment manufacturers to provide at least 70% of the subsidy, equivalent to about $1 million 500 thousand per machine subsidies. In addition, the government also provides tax and hydropower concessions to encourage enterprises to invest in the domestic LED industry, which is very attractive for local enterprises.