LED industry development has picked up pace in recent years as cities promote highly energy efficient lighting, according to a Securities Times report. Among global LED lighting applications, lighting and automotive lighting industries have been the fastest growing markets, and have become the main growth drivers in the LED industry.
Additionally, LED display market still holds great potential, and has been growing steadily, according to LEDinside statistics.
In the lighting sector, LEDinside estimates the global LED lighting market value will reach US $17.8 billion by 2014, while total LED lighting shipment volume is at 1.32 billion. Philips estimated the global LED lighting market value will reach between EUR 70 billion (US $90.55 billion) to EUR 80 billion, and acquire a 45 percent to 50 percent market share in the lighting industry by 2016.
Back in 2010, LED lighting products had a mere market share of 0.16 percent out of the 8.6 billion lighting products in China. The LED lighting industry has soared as product prices declined. Top brands 3.5W LED bulb retail price are now very close to CFL prices, and sell on average below US $20.
Accompanying technological advancements, LED bulbs have evolved from offering simple lighting features to intelligent lighting devices. Besides using smart controls to turn on and off lights, smart lighting are also an interactive hub that can add value to the product to include fitness management, GPS, targeted advertisement in retail sectors and proffer many other personal services.
Last year, China ranked as the top global automotive sales country for the fifth consecutive year having sold more than 20 million vehicles. The country’s large automotive market spurred developments in car components. LED automotive lighting market underwent expeditious growth that surpassed other related industries. Prior to 2010, the automotive LED lighting industry increased at an average rate of 13 percent annually, but since 2012 the growth rate has climbed above 40 percent.
Since LED car lights are a cool light source (with low heat emission), energy consumption is about one tenth of conventional light source, hence making them more energy efficient. China’s Ministry of Industry and Information Technology (MIIT) aims automotive lighting to reach its carbon emission target by late 2015. Since LED is a recognized environmental friendly light, if these lights are introduced into the automotive lighting market it will be worth billions of Chinese Yuan.
The gross profit of LED lighting products is typically three to five times that of average LED products. Yet, this highly profitable market is being divided among international companies or Chinese companies with foreign investments. Few Chinese LED manufacturers have been able to venture into automotive lighting market, due to technical limitations. In recent years, CN Light, which has core technology advantages and excellent product quality, has been able to acquire a leading position in the HID automotive lighting market. The company’s advantages in this sector has given it an early lead in the LED automotive lighting market.
LED Display Market
The LED display market is also a very important application market. LED displays have the advantages of high brightness, wide viewing angle, long distance visibility, different appearances, and highly saturated color. Large sized displays, especially can fulfill different application demands.
China’s LED display industry has developed very quickly since 1990, which also brought prosperity to the LED industry. China’s LED display industry is still in the fast growth phase. China Optics and Optoelectronics Manufacturers Association (COEMA) projects China’s LED display market value reached RMB 24.10 billion (US $3.93 billion) in 2013.
High growth rates of 15 percent per year are expected to continue in the LED display industry in the next three to five years, said Sinolink Securities. Full-color LED display sector will have fastest annual growth rates of 30 percent per year. LED display applications is expected to become a stably growing industry in China.