LED lighting market: how to get over the hurdles of price and quality

In recent years, the Quality Supervision Bureau, AQSIQ(General Administration of Quality Supervision), Industrial and Commercial Bureau conducted sampling inspection for LED lighting products, energy-saving lamps, road lighting applications, fire emergency lamps and electric light sources all over the coming from 15 cities. The result is rather disappointed: only 51% of LED lamps pass the examination. The low FPY (First Pass Yield) cracked down the confident of the entire LED lighting market. Some LED makers even use halogen powder instead of tri-color powder, making this emerging market all but impossible.

 

LED lighting market: how to get over the hurdles of price and quality

 

As for the phenomenon that using “halogen powder” instead of “tri-color powder”, experts indicated that the selling price of the later is 2-3 times higher that of the former. Compared with halogen powder, tri-color powder is more advanced in many aspects: higher light efficiency, better CRI, longer service life, but relatively, cost more. These behaviors actually do harms for the sustainable long-term development of LED Panel Light industry. Paying more energy on technological research and development is the best way to cope with the intense competitions in the LED lighting market. In order to achieve this effect, we need restrictions of rules and regulations.

 

In addition to the quality problems, the over-expensive selling price is another big obstacle of the development of LED. Compared with traditional lights, the market penetration of LED lighting applications is only 5%. LED has been developed in the mainland for nearly 10 years, which is really short compared with other traditional lamps. It is very difficult for them to drop the price exponentially. Currently, the average cost of one LED bulb is around 5 USD, which is 10 times of the cost of one incandescent bulb.

 

LED lamps are mainly composed of LED lighting sources, drivers and cooling sections. Domestic LED manufacturers engaged in almost every aspect of this area: from chip producing to packaging to application. In order to reduce the production cost, many LED makers choose to develop their own LED driver circuits. Stability, technique factor and optical-electrical conversion efficiency are the three major factors that determine the quality of one driver.

 

Using self-developed drivers can dramatically reduce the production of LED lighting products, especially LED bulbs. In accordance with the law of market development, it is believed that the price of LED bulbs will drop dramatically within the next two years. Price cut caused by vicious competitions should be eliminated in the LED lighting market.