As LEDs Meet Lighting… - ttnet Marketing Blog

As LEDs Meet Lighting… October 18, 2007

Posted by wenbi in : Lighting , trackback

ttnet.net - [2006/04/07]

Booming building and manufacturing activities and a revolutionary transition to energy-efficient products pave a bright road for lighting fixtures. The global market for light sources of all types (incandescent, fluorescent, etc.) reaches $12-15 billion, growing by 2-3% per year, while the lighting fixture industry is forecasted to increase by 6.2% annually through 2008 to $85 billion. Although the lighting industry has a long way to go before it is in a position to accept LEDs as light sources for general use, industry experts predict that energy-efficient LEDs will sooner or later sweep away all other forms of lighting, up to and including household lights. High-brightness light-emitting diodes (HB-LEDs) mainly aim at illuminating application. HB-LEDs offer lower power consumption, longer operating life and environmental advantages yet use up only one-tenth the energy incandescent lights consume. The demand of HB-LEDs lights is driven by their increasing penetration in market segments such as mobile appliances, LCD backlights, automotive lighting and signage. In 2004, the market for HB-LEDs in all applications reached $3.6 billion. By 2008, the overall HB LED market will be nearly $6 billion, of which 12% will be used for lighting.
The very high performance white LEDs are now widely available thanks to the hybrid of high brightness blue emitters and high efficiency phosphors. Conventional LED lights, which focus LED application on illumination field, are also making inroads into the market of traditional incandescent and fluorescent lights. In spite of facing competition from better-performing lamps, including halogen types and compact fluorescents, certain fluorescent lamps tend to show persistent growth, including compact fluorescent lamps, which will benefit from increasing penetration in the large residential lamp market.

The U.S.
U.S. demand for lamps is forecasted to inch up by 3.1% per year through 2009 to $5.2 billion. The gains will be stimulated by robust nonresidential and non-building construction spending, along with a healthy outlook for the production of lamp-containing manufactured goods like motor vehicles, transportation equipment and electronic products. Moreover, the demands for lamps will be spurred by continued consumer and government focus on energy efficiency, which supports sales of more efficient, and more costly, fluorescent and high intensity discharge (HID) lamps. Filament lamps such as incandescent and halogen types tend to keep to account for slightly more of value demand through 2009. Even under the strong challenge of better-performing lamps, including halogen types and compact fluorescents, Incandescent lamps will maintain the single most commonly used type of lamp as a result of widespread use in residential applications. Halogens will last to erode incandescent lamp market share in both building and automotive applications, marking strong growth through 2009.
Nevertheless, the growing momentum will remain somewhat limited by the highly mature nature of the market while confronting rising competition from alternative lighting technologies such as light emitting diodes (LEDs) and fiber optic lighting systems. In concerning about energy efficiency and longer lifespan, the US government schedules to equip LED at all traffic lights by the end of 2006 so as to save 750 dollars a year each.

TAIWAN
Taiwan sees its LED industry grow rapidly over just the last few years to become the second-largest supplier behind Japan, which is forecast to be responsible for almost half of world production at 47%. In fact, Taiwan dominates the global production of InGaAlP HB-LEDs, with more than 80% share, followed by Japan and Mainland China. The overall value of LEDs manufactured in Taiwan is to exceed $1 billion in 2005, accounting for 25% of the global LED market as the second-largest supplier after Japan, according to the Industrial Technology Intelligence Services (ITIS). The output of high-brightness LEDs is nearly $1.6 billion and is predicted to grow to $2.64 billion in 2008. Ultra-brightness LEDs are to make up 22% of the world market by 2008. The LEDs for general illumination will approximate $844 million by 2008, while automobile signage and backlighting occupying more than 60% of the market throughout the forecast period. Forecasts also see the LED market almost doubling from USD 3.2 billion in 2004 to USD 5.6 billion in 2008.

CHINA
China’s rapid economic growth results in an urgent need for energy, which push the government to aggressively adopt the solid-state lighting as an ultimate energy-efficient solution as 12% of electricity currently goes to lighting. Over the next few years, LEDs will account for 30% of domestic lighting market, aiming to save 58 billion kilowatt-hours per year. So far, the government has invested $725 million in solid-state lighting industry, in part to prepare for the Olympics in Beijing in 2008. In 2004, outdoors decorative lighting makes up for nearly a quarter of the Chinese LED market, in total value of $1.4 billion. China is to produce 65 billion units of HB-LEDs by 2007. The production bases concentrate on mainly in Guangdong, Jiangsu, Zhejiang, Shandong, Shanghai and Fujian.