The energy crisis and the enhancement of environmental protection awareness gave global LED lighting market a prosperous future. In the dual stimulus coming from the market and the regulations, the global LED industry showed a rapid increasing. At present, the semiconductor lighting industry has formed a new industrial distribution and competitive landscape in the world, the three pillars of the United States, Europe and Asia. North America and Japan are always in a leading position in the upstream chip manufacturing. In Asia area, Taiwan also has very powerful LED core technologies and occupied a large amount of the mainland’s market. In Europe, the traditional lighting giant, Philips, OSRAM have shared the entire LED lighting market.
Thanks to the increasing enthusiasm of customers to environmental friendly products, not only developed countries, but also a lot of developing countries start to develop LED lighting applications and exploit their local markets. Frankfurt Lighting Fair in Germany was always been considered as the largest, the most important and the most authoritative lighting exhibition in the world. In past few years, LED lighting applications occupied a dominant position. More and more LED manufacturers emerged in this exhibition.
Currently, the majority of LED lighting applications are from commercial area. However, the over expensive prices blog the popularity of LED lighting products in this part. It is estimated that if the price of LED lights were reduced by more than 30%, the proportion of LED lights in the entire lighting market would have increased to 60% based on the research data. Thus, how to improve technology contents and meanwhile reduce production costs became the most significant issues waiting to be solved.
For the development strategy of China’s LED lighting industry, Mr. Zaihua He, a senior investment consultant, indicated that “LED lighting industry is having a rapid development here in China. The number of enterprises that entered this area each year grew linearly. Everyone treated LED as a giant delicious cake, if you come, you can have one bite. But actually, this phenomenon is very dangerous for the entire lighting market.” It is true that the large capital inflowing blindly will cause chaos to the market. At first, abnormal developments will emerge among industry chains, including serious disconnection, downturn of profits. There will be only input with no output. Secondly, the blind investment in the downstream of the LED lighting industry will speed up the compression of the margin profit and increasing the intense of competitions.