The rise of new business model LED Street popularity is expected

Light emitting diode (LED) lamp attractive business opportunities, but large initial construction cost often brush cloth intention to get into a big ticket vendor, to build strong capital across the threshold, the industry is set off a wave of vertical integration trend to lower production costs, and maintain the gross profit. In addition, China, recent rise of energy management contract (Energy Management, Contract, EMC) business model, by LED operators and energy management company, to spread the cost pressures, also bring new energy for the development of LED street lamp.

Chuangxian electronic business development manager Wu Dongjing said that the current LED capacity competition in Japan and South Korea, and Taiwan continues to expand, who can have more access to enter the global market in the future will become the key to success.

Chuangxian electronic business development manager Wu Dongjing said, LED lighting will replace traditional lighting trend is gradually clear, single for outdoor lighting market of global LED, 2016 is expected to grow to 1 billion euros, the key now is the LED manufacturers seize the market when a space for one person. The lamp uses the largest light lamp as an example, Taiwan is building up to nearly one million and six hundred thousand, but due to unknown and high price of LED policy and other factors, the current LED lighting penetration is only 2%, so the industry for attacking the remaining 98% market, actively carry out vertical integration, single LED products the price pressure to a minimum, to approach the traditional lighting of the price band, to further accelerate the process of LED street lamp to replace the traditional lamp.

LED package Dachang million light, is currently the largest action to start the LED supply chain vertical integration manufacturers, in addition to the launch of its own brand "Everlight LED" to digest capacity, and actively into the upstream epitaxial supply chain, in August this year, obtained the right to operate the Taigu epitaxial plant. Wu Dongjing said, billion light has mastered epitaxial segment capacity and their upstream of the LED lighting application brand sea, now more eager to expand business territory, aimed at middle grain production and module factory. He also expected that the future will continue to invest in the light of a hundred or more mergers and acquisitions into the key capabilities of the LED supply chain, to further enhance the production process and services to enhance the competitiveness of LED prices.

Another note, due to the LED street early considerable deployment cost, China, also recently set off a contract with the development trend of energy management business model, the model is dominated by energy management company in the energy efficiency assessment a case after the establishment of LED Street area, and in consultation with local governments signed contracts from 5 to 10 years, and the first to charge for the next 5 to 10 years of fixed costs for LED industry cooperation, shared for the area to perform large-scale LED outdoor lighting replacement cost.

Analysis of Wu Dongjing, this model is good after the import LED lamps save electricity, which is the main source of profit, and profit by the energy management company and LED vendors on the bill, LED manufacturers not only can disperse the cost pressures, but also speeds up the investment cost recovery rate, the local government also gradually will area the lighting of "free" replaced the LED form, to the termination of the contract can fully enjoy the following energy-saving benefit, forming the three party mutual benefit. Therefore, the initial investment of a huge amount of LED street lamp construction has gradually developed in this direction, is expected to accelerate the pace of replacing traditional lighting.

For example,, by CREE (Cree) Co executive with Dongguan KingSun Shenzhen Expressway LED project has been completed on the day before lighting. The total length of 120 km total deployment one million and five hundred thousand LED costs are staggering, so the case of the use of contract energy management, using electricity savings to pay part of the investment project, in order to avoid the initial construction and subsequent installation of high maintenance costs not only reduce the industry menace from the rear, build LED lamp input costs, energy management company also can make saving money.

On the other hand, Wu Dongjing analysis, in view of the successful implementation of the contract energy management mode, Taiwan is also expected to copy, China case, to low cost threshold LED street. However, due to the LED policy and standard of Taiwan government at the present stage, compared with Chinese, ten city lights, the 12th Five-Year plan was blurred many, Taiwan industry in the development of LED lights on the bound hand and foot, and LED Street still has the power supply module is easy to damage, and long time light color drift the problem remains to be solved, therefore, the current development of Taiwan's LED Street still many setbacks, until next year with the standard policy further after forming, can make a breakthrough.