How to break through the freezing period of LED lighting enterprises in China

Energy crisis and environmental protection has become the focus of global sustainable development, the development and utilization of energy saving products and renewable energy has become the basic choice of energy development in most countries in twenty-first Century. Our focus on the development of seven strategic emerging industries, energy saving and environmental protection at the top of the list, which included in the semiconductor lighting industry in energy saving and environmental protection in emerging industries; the major countries in the world has released the time to stop the production and use of the incandescent lamp, the elimination of inefficient light source is represent the general trend; in this environment, LED lighting industry ushered in the opportunity of rapid development.

The development of LED lighting technology and products in China

From the early LED landscape lighting products, lighting projects currently in the areas of the market share has exceeded 80%, the market has become mature; in 2009 the country launched the ten city lights project, a strong impetus to the application of LED technology in the field of road lighting, LED lamps have a very high price in the application and the second branch roads, LED tunnel lights have been mature in tunnel application. The application of LED in 2010 began to rise the function of indoor lighting field, it should be said that the market scale is the largest in the field of the application, at present the optical efficiency of LED indoor lighting products commercialization already can reach 80lm/W, only from the index of luminous efficiency, luminous efficiency than traditional fluorescent lamps, far more than incandescent lamps and halogen lamps, indoor lighting in the total cost of ownership advantages also emerged, currently in the domestic industry leading enterprises are already mature.

From the results of practical engineering application in recent years LED lighting products, LED lighting products has gradually matured, the demonstration project shows good stability and reliability, the failure rate of more than three years ago has decreased the magnitude of the current LED lamp, several leading domestic enterprises can ensure the life of 30000 hours or more, the maturity of the security products.

At present, the technology of LED lighting products has become mature, but in the domestic market has not yet opened, the key factor is the price is too high. To the Japanese market as an example, LED lighting in the second half of 2008 just listed, the price up to 8000 yen, the sales market is very limited, the sales price of the first half of 2009 in Japan dropped to below 4000 yen, is half of the original, so demand is rapidly increasing, Japan in 2009 sales of about LED bulb 1 million 700 thousand, the first half of 2010, the mainstream LED bulb sales price fell to 2500 yen, the second half of the year fell to 2000 yen, in 2010 the annual sales soared, has reached 11 million, 2011, the mainstream LED bulb sales price is down to about 1500 yen, about only the equivalent of CFL energy-saving lamp 1.5 times, at the same time due to the 311 earthquake power supply impact of the rapid expansion of the market, the scale is expected in 2011 will be more than 30 million. Thus, the current level of technology to replace LED bulb, can completely meet the requirements to replace incandescent lamp technology, is currently the main obstacle is still the price, the popularity of low price of LED lighting will be the key.

Challenges faced by LED lighting enterprises in China

(1) the deterioration of the economic situation in Europe and the United States will have a negative impact on the export oriented domestic LED lighting enterprises

At present, more than 90% China production of LED lighting products are export-oriented, because the United States is not out of the 2008 financial crisis, the European debt crisis has not eased, foreign major developed economies slump LED lighting enterprises to export-oriented production.

(2) LED industry investment overheating, excess capacity, excessive competition in the market

According to the national semiconductor lighting industry alliance statistics, in 2010, China's LED lighting industry output value reached 120 billion yuan, of which the upstream chip of $5 billion, midstream package of $25 billion, the downstream application of $90 billion. But there are 1000 enterprises in the middle reaches of the packaging industry, with an average sales revenue of only $25 million, more than 5000 downstream applications, with an average sales revenue of only $18 million, the industry is still in a highly decentralized state.

Since 2011, LED IPO from the batch enterprises, raise funds to invest, both chose LED package and downstream lighting products production capacity expansion, expansion is much faster than the market demand, the domestic enterprises of white LED patent problem has not been solved, resulting in a large number of products can only find a way out in the domestic market, which can lead to excess vicious price competition is expected to be reflected in the 2012. Recommends that the government subsidies LED lighting products end users, reducing the cost of the initial purchase of the end user, shorten the payback period of customers to promote the development of application.

(3) non-traditional lighting companies involved in the LED lighting industry, marketing channel compression, price war ahead of

The construction of the channel and the market running is a long-term process, not a short duration of time will be completed, from this angle, preliminary stage of development of LED lighting industry no brand, the traditional lighting companies will channel advantage is very obvious. From the current market situation, many enterprises due to the lack of sales channels, have picked up the price war weapons, leading to LED lighting products in popularity before they have begun to price competition, will cause great negative impact on the sustainable development of industry.