Mr. Carlost LEE, the Secretary-General of the European Photovoltaic Industry Association expressed his views and questions in a recent published report of “When LED Enters Into the Third Development Cycle”: “It is expected that the general lighting industry will be explosively grow in 2018-2020. Certainly, the business model of the product should be combined with their life-cycle. G24 LED lighting products have relatively long life-cycle. Thus intelligent control will increase the added value of commercial LED lighting products.”
LED lighting market is fragmented. Different application fields have different requirements to LED lamps. Take commercial LED lighting products and industrial LED lighting products for instance, the total production cost and appearance are two major factors that will be taken into account, while residential lighting products buyers are more concerned about qualities and lighting effects.
Currently, the penetration of automotive LED lighting products is still low. LED display industry has a relatively high market penetration. But we believe that the penetration of LED lighting applications in various areas will enjoy an increasing development from 2012 to 2020.
However, most of LED lighting products lack standard reference. Consumers are inclined to buy cheaper lamps but with low qualities, which will be easily failed after being put into service. This is one main reason why most buyers lost confidence in LED lighting products. It is not to say that every LED lamps should have a good quality. Good quality usually means expensive selling price. Consumers have right and should to know what type of products they are looking for. What kind of expectations that they should have on their products.
Incandescent replacing process is very simple. We now can see many CFL in hotels and hospitals as a replacement of incandescent lights. Generally, the service life of incandescent lights is around 6-9 years. Plus the good performance of CFL in lighting effects and luminous efficiency, it is very hard to persuade people to use commercial LED lighting products instead. LED makers need to put some additional value into their products to have them be accepted.
The lighting market is concerned more about the general lighting business. In order to further reduce the product cost, combining lighting technology, sensor technology, ITC and intelligent control together is a necessary developing step.