According to a recent report of TrendForce (the international research institute) about the LED packaging market, by the end of 2012, the estimated output value of LED package used in LED lighting applications is approximately 2.66 billion USD, growing by 23.5% compared with 2011. LED package used in the architectural landscape lighting applications (LED Flood Lights) and interior lighting applications (led tunnel light Bulbs) accounted for the highest proportion. However, under such circumstance, prices of LED packaging products were falling continuously. International lighting markets have been gradually opened as a result of advance import and price incentives. From the standpoint of global LED bulb market, the average selling price of equivalent LED lighting technologies for 40W incandescent bulbs dropped to around 10USD in Korea, the United States and the United Kingdom in 2012, which increased the buying intentions of consumers.
From the standpoint of LED packaging market, the reversion of LED specifications caused the sharp reduction of LED lighting production costs. In the past, high-powered LED lights dominated the LED lighting application market. However, when 5630 packaging technology was introduced, mid-powered LED lighting products started to swarm into the market. In fact, high-powered LED packaging techniques lack of competitiveness compared with 3014 and 5630 packaging in the LED packaging market. Currently, high-power LED lighting applications are facing with excess production capacity problem. It is expected that may upstream LED suppliers will continue to increase the investment of low-power LED packaging industry. In addition, low-power LED lighting applications still has 20% price cut in 2013.Thus, it is believed that low-power LED chips will be dominated in the competitive LED bulbs and LED tubes market in 2013.
From the standpoint of the terminal LED lighting market, according to related industrial report, the demand for energy-saving applications brought about by the earthquake in 2011 significantly enhanced the consciousness of power-saving of Japanese people. Thus in Japan, people have higher level of recognition on LED lamps and more purchase intentions, plus the dramatic price dropping, in 2012, LED lighting industry rapid developed in Japan. In the global point of view, compared with traditional lighting industries, the market penetration of LED lamps has reached up to 17.6%. This data is even higher in Japan, which is 30%-50%.