LED lighting low times ferocious

Looking back in 2014, there are a lot of enterprises in the LED industry and the closure of the phenomenon, many manufacturers in response to the rapidly changing market, have taken strategic changes or organizational restructuring measures. The global research agency dramexchange (Trendforce) green energy division research associate storage in ultra, said in "LEDforum 2014" will be in Asia, especially the rise of Chinese manufacturing plant, promote the rapid changes in the market, driven by the low lighting trend, have a significant impact on the industry and change.

Dramexchange green energy division of Photo Credit: LEDinside in super associate storage

LED lighting to promote the growth of alternative products market mainstream

Chu Chao said in the Asian market, price competition is fierce, to maintain a rapid growth rate very high difficulty, a conservative estimate of the 2014 global LED packaging market size of about $14 billion 600 million, to 2018, the compound annual growth rate of about 3.2%. Among them, LED lighting applications as the largest, in 2014 revenues of approximately $4 billion 800 million, an annual compound growth rate of 12%, becoming the key growth momentum in the LED market.

At present, the application of LED lighting bulbs, bulbs, lamps and other alternative light source products accounted for the highest, LED package type for response to demand, but also to medium power for mainstream applications. For the original focus of high-power European and American manufacturers, is now actively seeking Asian manufacturers ODM or OEM trend, stored in the super light that the overall situation of the lighting market has been set, the manufacturers have to develop low-cost solutions.

The LED standard scale production of low-cost low-end market attack

With the advent of low-cost lighting, manufacturers continue to introduce cheaper solutions. Stored in the ultra analytical manufacturers to take low-cost reasons, including economies of scale production, fully automated production, as well as the emergence of new business models and other trends, so that the price of LED lighting products continued to decline.

From the LED package components market, high order lighting applications for each type of product design in different package to be optimal effect; low order application is in LED specification development, attract China in mainland and Taiwan and South Korea manufacturers to follow up, have sights on low order market, with 2835 and 3030 specifications manufacturers favor.

Taiwan Japan and South Korea LED plant focused on 3030, with EMC stent as the main application; the Chinese mainland LED for the main specifications of the manufacturers, by LED component standardization and scale production cost down, the price is quite high. With Chinese, 2835 competition, Taiwan factory will be 3030 from the original 1 W open specifications 0.5 W specifications, the number 3030 market to improve.

Automated production to reduce assembly costs 50% new business model impact on the market

Another market trend for the introduction of fully automated production line. Since the second half of, some mainland Chinese manufacturers began to import assembly automation production line, can make the assembly costs decreased by 50%. However, each LED bulb bulb or lamp specifications, solutions are different and can not be standardized, coupled with the introduction of automated production line requires a huge amount of money, which makes it difficult to quickly automate the implementation of. Lighting Industry Hengda, large number of large shipments, the cost is also reduced.

Chinese manufacturers in response to the era of cheap, and actively promote a number of new business models, such as through e-commerce channels, can solve the problem of high price of LED lighting products. In addition, such as through the Chinese mainland suppliers of components in series, a group of LED lighting alliance business model, in accordance with the specifications to measure the price, will cause some damage to the market.

The pressure of the rise of Chinese mainland manufacturers, the LED industry is facing a severe test. Next to the advantage of the competition in the Red Sea to cut prices, or to find blue ocean investment niche or emerging markets, must be carefully considered and layout.

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