The LED Industry Steps to Nationalization

Under the background of actively promoting low carbon economy worldwide, the LED industry that takes energy conservation and environmental protection as the theme gets a great attention to the market. National policy support paves the way to development of the LED industry, with increasingly mature technology, LED large-scale application value has gradually reflected. In the future, the application of LED backlighting and lighting field will be an important factor to promote the growth of the LED industry. It is notable that at present some domestic listed companies have entered raw materials and important equipment manufacturing fields, which will be better for cost decline and production capacity expansion of the LED industry. It is also the important action to really realize the nationalization of the LED industry.

In the beginning of development, governments have introduced the support policy to the LED industry in the world; promote industry development speed through the law and regulations, financial subsidies, etc. In policy aspect, China formulated the development suggestions of semiconductor energy saving lighting industry, and listed semiconductor lighting under the newly strategic industry.

At the same time, the local government adopts some measures such as preferential land policy, tax concessions, equipment subsidies and so on, which greatly reduces the initial investment cost of LED enterprise. With a large preferential policy, currently many domestic areas have already arranged LED industry chains successfully. In the initial development period, policy support plays a vital part in the development of the whole LED industry.

With the constant improvement of the technology, the LED industry faces a broader market space. The initial LED chip materials was limited by brightness, whose application field is limited to household appliances, instruments and meters, electronic products, etc. with the emergence and development of new materials, blue, green and the white light technology based on blue light makes the LED application more and more common, application field expands to the backlighting, indoor and outdoor full color display screens, billboards, flashlights, special lighting, and all kinds of city lighting project and general lighting.

Cost decline and cost performance improvement of the LED are the foundation that the LED industry steps to large scale commercial applications. At present the phenomenon that the price substitutes effect gradually appears. At the same time, according to the relevant departments’ statistics, high power LED devices used in lighting products reach over 10% reductions in the first quarter of this year. With gradual price fallback of LED chips and devices, LED emerging fields such as large size backlighting, general lighting and begin to expand the application and will speed up the development pace in the future.

At present, the commercial lighting has the highest permeability in the lighting field. Because the commercial field is not sensitive to price, it is the important reason for large scale promotion. In recent years, the LED lighting’s permeability to market has increased year by year. LED lighting market penetration is up to 1.4% in 2010 and it is expected to reach 9.6% in 2014.

All in all, the LED has very big development space in lighting fields. The plan that the globe fast phases out incandescent lamps will provide the opportunity for the development of LED lighting. It is forecasted that the market scale of global lighting industry will exceed 330 billion dollars; the market scale of lighting industry in China is expected to be 250 billion Yuan.