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Issues about Chinese LED lighting market

Author : Jerry Song Date : 1/7/2010 6:13:45 AM

While the chinese government continues to strengthen the policies in the LED intensity, but the LED energy-saving lamps are still not developed good enough, just with small scale industries, analyse the current market, there are four major issues restricting the sustainable development of energy-saving LED lighting.

1, Lack national standards.
At present, the lack of national standards and the missing of quality certification standards, direct result of uneven quality of the product on the market, the market chaos and without uniform standards to measure, which affect consumer confidence to buy.

But also because of the lack of national standards, it means that LED can not enter the government procurement list, result lost the large government procurement market. Therefore, the lack of the necessary national standards, is a major constraint to the sustainable development of LED lights.

2, The price is too high.
LED's real market should cover the home lighting, commercial lighting, industrial lighting, road and outdoor lighting and so on, but now the LED main sales market is still in the the public domain, and the demand for large area such as household lighting just applied the least.

The price of LED lamps is too high, according to market conditions, 3W of LED light priced at 80 yuan, the price is equivalent 5 to 6 times of the normal energy-saving lamps, and even 10 times higher than the incandescent lamps. So this price can not be accepted by ordinary family.

According to "Moore's Law" of LED industry, LED's light output will be doubled for each 18 to 24 months, while prices will decline by half. Based on prediction analysis, by 2012, the price for domestic LED lighting will drop drastically, this will increase the energy saving LED lamps in the home lighting application, it is expected that in 2012, with the continuous development of the LED industry, the individuals and home aplication will reach its peak.

3, LED Products lack core technologies, and product line is monotonous.
Currently, LED lighting in the field of home application in China is still in its infancy, but the application in developed countries is relatively mature, a lot of families in those countries are beginning to use LED lamps, mainly because of the high electricity prices. Besides high price, the domestic LED illuminators also lack core technologies, product line is monotonous, currently there is no full solution for home LED lighting on the market. So the lack of products for home aplication has also affected the development of chinese domestic market,.

4, consumers with poor awareness on LED lighting.
As the world's largest electric lighting producer, and the second exporter, China set up the National Leading Group for LED Lighting Project in 2003, and formally launched the national LED lighting project, But the reality is not optimistic, about 70% users in chinese developed cities are using the traditional fluorescent lamps, in rural and undeveloped areas, 80% are still using incandescent lamps, many consumers had never heard of energy-saving LED lamps, which shows that our LED Light is still a huge potential market. However, due to consumers' low awareness and firms lack of promotion, the LED lamps in home application is also affected.

Currently, LED lights are the most energy-efficient lighting, as electricity can be directly converted into light, energy saving up to 80%, lifespan is more than a decade. With energy-saving and national policy support, chinese LED lighting is a huge potential market. At present, China's LED industry needs to establish national standards to regulate the market as soon as possible; the firms need to enhance the core competitiveness by invest more on R&D, and enrich the LED lighting in home applications; also increase promotional efforts to allow more consumers understand the advantages of energy-saving LED lamps; continuously improve the production process to cut the cost, so that more ordinary families can afford the LED lights. As long as these problems are solved, chinese LED industry will turn into a new development opportunity.

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