2012: LED entered the lighting market layout decisive year

Recently, the Ministry of industry guidance and organization, Chinese /LED semiconductor lighting industry and the alliance was formally established. According to media reports, after the establishment of the alliance, the main work includes the semiconductor lighting industry to promote /LED core technology and products of independent innovation, promote scientific and technological achievements into practical productive forces, etc.. In addition, including the promotion of semiconductor lighting /LED industry public service system construction, technical standards, etc..

Ministry of industry and electronic information division director Ding Wenwu said that the Ministry will focus on strengthening the guidance and planning, accelerate the adjustment of industrial structure, strengthen the standard of intellectual property rights, and detection system, and strengthen the industry chain interaction, increase the development of LED in various fields of application and push into the LED industry.

Warburg Securities said that in 2009, the upstream enterprises of China's LED lighting industry has nearly 60, the middle package has more than 1 thousand enterprises, more than 2 thousand enterprises downstream applications, more than 800 thousand people in employment. Due to the blind development, China's LED lighting industry exposed the lack of core technology, lack of innovation, market competition disorder and other issues. Ministry of industry planning and guidance will be conducive to the healthy development of LED industry. Orient Securities said that in 2012, the policy will be the key to promote the rapid growth of LED lighting, the central level will play a leading role in the formulation of standards and regulations, and local government financial support will be many times greater than the central level of subsidies, boosting LED lighting penetration.

In fact, not only in our country, LED lighting is gradually becoming the focus of global attention. Insiders said, affected by the global economic downturn in 2011, LED industry demand depressed, industry slowdown, backlight application original hot micro efficiency and also because the chip design of the backlight module using LED to reduce the number of improvement, and other reasons, the global LED industry appeared signs of recession. Reflected in the two market, the valuation of the LED industry relative to the first half of 2011 there has been a marked decline.

However, the industry also pointed out that the recession is only a temporary phenomenon. In 2012, the global market will become a watershed disable incandescent lamp, there will be more than 2/3 of the area to prohibit the use of incandescent lamp or high wattage incandescent lamp lighting the world. At the same time, with the increase of government policy subsidies, as well as the market for environmental protection and energy saving products increasingly mature, LED lighting output will grow significantly, LED lighting is expected to become the vanguard of the industry.

From the scale, UBS Securities, said the general lighting is the largest potential application of LED market, the global lighting market in 2010 600 billion yuan, general lighting $450 billion. At the same time, LED lighting output penetration continues to rise, is expected to reach 20% in 2013, and by 2020, LED lighting output penetration is expected to reach 50%. UBS Securities estimates, from 2011 to 2016 the average annual compound growth rate of 35%, from 2016 to 2020, the average annual compound growth rate of 15%, the volume of the industry will grow from $70 billion in 2010 to $500 billion.

Insiders said that in 2012 is a decisive year for LED to enter the layout of the lighting market, the terminal price or will become a key factor in the outbreak of LED demand. UBS Securities said that if at the end of 2012, LED lighting products to reduce the retail price of 50%, so the product demand is expected to increase by 4-6 times, and the manufacturing cost and channel profit and government subsidies and other aspects of the analysis, next year LED terminal retail price of half off is possible.