LED lighting market: the first outbreak of the trend in Europe and Japan

Overseas LED lighting industry's recent performance is remarkable, frequently turn over optimistic data at the same time, continue to lower product prices, increase product research and development investment. Insiders pointed out that the recent overseas LED lighting market new catalytic factors could be roughly divided into two points: one is the United States requires States to improve energy efficiency standards; two is to lock up the fluorescent lamp products in japan.

Europe and the United States market trends

Rapid growth in the European LED lighting market background, located in North Carolina, LED lighting leading enterprises CREE (CREE) 12 announced that the company in the United States second largest retailer listed 100 watt LED bulb retail price of $19.97. The launch of the product is in line with the current energy efficiency goals of the United States, the United States energy efficiency Economic Committee expects that by 2035, the United States will save $156 million a year for families and businesses energy costs.

In this context, CREE has been and is expected to take the east to continue its rapid pace of development. In January 21st the company released the company's first quarter earnings, the company's quarterly revenue of $451 million, an increase of 20%, better than market expectations; quarter GAAP profit of $35 million 700 thousand, earnings per share of $0.29, an increase of 75%; when the season lighting products sales rose 42%, the LED lighting sales revenue for consumers the double the same period last year.

It is worth mentioning that, despite the impact of home depot and other low-cost strategy, but CREE lighting product gross margin still rose to 27.9%. Currently, CREE is expected to achieve revenue of $390 million to $420 million in the next quarter, earnings per share of $0.34 to $0.41, gross profit margin is expected to reach nearly 38.5%.

At the same time, a lot of recent LED Lighting Companies in Europe in 2013 report also released. According to PHILPS's 2013 annual report, the proportion of LED business revenue continues to rise, the development trend for the better. In 2013 the company achieved LED revenue growth of 38%, in the economic downturn in the environment to promote the growth of lighting business revenue.

OSRAM 2013 LED business revenue reached 1 billion 528 million euros, an increase of 11.4%. The traditional lighting business revenue of 3 billion 761 million euros, down by 6.7%. The company's development goals, in 2017 before the LED lighting in the company's annual total revenue accounted for more than 50%.

The European Commission has also recently provided funding for new research projects on inorganic and organic lighting panels. The goal of the project is to help improve LED penetration in the European market. The Commission provides 3 million 150 thousand euros of funds to the project, and by the Swiss private non-profit institutions and micro Swiss Electronic Technology Center (CSEM) project coordination.

Insiders pointed out that the United States and the European market is the most anticipated market. The next two years, the U.S. market penetration will usher in the outbreak from 10% to 50%, the European market will usher in the outbreak from 20% to 60%.

The first outbreak of the Japanese market

In addition to the European and American markets, Asia's LED lighting market is also showing its great potential. According to Japanese media reports, Japan's Panasonic Corp in 2015 to stop the production of residential fluorescent lamps, and all of them replaced by LED.

At present, Japan's Matsushita residential lighting products in the overall proportion of LED shipments reached 80%. In fact, the Panasonic Corp has to stop the development of fluorescent lamps of new products in 2013, Toshiba and Hitachi in 2012 to stop fluorescent lamp product development. From the penetration point of view, the Japanese market is the world's first to achieve LED lighting penetration reached 50% of the country. From the experience of the Japanese market, the penetration rate from 20% to 50%, Japan took only two years.

Insiders pointed out that the first outbreak of the Japanese market is mainly attributed to two factors: one is Japan's national energy shortage, Fukushima nuclear leak serious incidents exacerbated this problem; two is to government subsidies, the Japanese market in the sale of LED lamp price is only half of the other half price, subsidized by the government.