LEDinside: China’s residential lighting market surpasses US$ 800M in 2013

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Starting from 2012-2014, bans on incandescent lights has led to the gradual entry of LED products in the residential lighting markets, according to a latest search report by LEDinside, a research division of TrendForce. Improved LED luminous efficacy and lowered LED product prices contributed to higher consumer acceptance levels and rising penetration rates. Japan was the largest LED residential lighting market in 2012, followed by Europe and North America. However, China’s residential lighting’s global market share is also growing.

China’s LED residential lighting market will reach US$ 5941 million in 2013, with LED residential lighting accounting for US$ 814 million, and taking a 24% share of the overall global market. The LED residential lighting market development in other regions including Europe, U.S., Japan, Taiwan and emerging markets is also being spurred by establishment of policy standards, and manufacturers promotion of product and pricing strategy.

In North America, a increase in new home sales and arrival of LED lamp sweet point are powerful driver force to support the U.S. LED residential lighting market growth. Establishment of luminaire standards, such as Energy Star and others are directing the market towards standardization. In addition, top manufacturers including Cree, GE, and Philips are acquiring market share and shaping industry development with expanded product lines and releases of new products with high price /performance ratio.

Affected by ban on incandescent lamps, Europe’s LED lighting market competition has intensified. LED lamps Average Selling Prices (ASP) continued to plunge, while more lighting products with intelligence control system features are entering the market. For instance, Philips has launched Hue LED lamps using WiFi to control and switch light color. Osram is also using lighting control systems from subsidies to integrate LED lighting with intelligent control systems.

In 2012, Japan’s LED bulb shipments reached 27.9 million and estimated to grow to 28.5 million in 2013. Japanese lighting manufacturers are develop new business strategies, due to fierce pricing competitions in the bulb market and gradual market saturation. Japanese manufacturers are differentiating their products in the market by focusing on high power LED lamps and high performance products, developing ceiling lights, or expanding into emerging markets including Vietnam and Taiwan.

China has extended its 2013 SSL product fiscal subsidies to 30 million lights, including residential lighting products. However, the average Chinese consumers understanding of LED lamps remain limited, with only 25% of surveyed accurately identified LED bulbs, according to a recent LEDinside Chinese market survey. Therefore, before Chinese LED lighting manufacturers can tap into the general residential lighting market, consumer education is required to improve understanding.

In 2012, Taiwan’s LED bulb shipments reached 1.34 million and estimated to grow 20% in 2013 to 1.61 million. Major Taiwanese LED bulb manufacturers include Everlight Electronics Co., Delta Electronics, and Top Energy Saving System Co. (TESS). In addition, Toshiba and Philips are also actively expanding into the Taiwanese market. In 2013, manufacturers promoted brand new lamp specifications that emphasize omni-directional lighting and Color Rendering Index (CRI).

【Lighting Market Trend – Residential lighting market trend】

According to LEDinside, observed from the 2013 regional residential lighting market development, the Chinese market proportion will increase from 19% in 2012 to 24%, becoming the fastest-growing regional market. In terms of the European market, the implementation of comprehensive ban of incandescent lamps and the economic recovery after the European debt crisis gradually had a positive impact onLED light bulb market, and the LED light bulb market penetration rate is expected to increase.

In view of the users and using habits of LED lighting products, LED lighting can bring more energy efficiency compared to conventional lighting. Hence, LED lighting penetration rate increases more quickly in commercial lighting, industrial lighting and outdoor lighting, because energy-saving demand in those applications is higher, and all users are professional. 

Residential LED Lighting Market in 2012 

 

Source: LEDinside

Residential lighting is mainly targeted for the general consumers, except that their awareness of the LED lighting is not high, they are more sensitive to the initial investment cost. Therefore, LED lighting penetration rate of residential lighting relatively lags behind that of other application areas. 

In contrast to LED commercial lighting, LED residential lighting is characterized by diverse consumers that are more sensitive to prices; lower power products are needed; and low gross profits for lighting manufacturers. Therefore, as LED lighting becomes popular, manufacturers need to carefully develop each market segment and consumer habits, and stringently control costs and product quality. Especially, in the beginning when prices decline rapidly and consumer habits are constantly changing, manufacturers can easily miss out opportunities to quickly establish sales channels and product popularity if they do not use low price strategies to enter the market. 

 

【Automotive Lighting Market Development Trend- Trends in the LED Rear Combination Lamp (RCL) Market】

RCL composes of tail lights, brake lights and direction lights. Regulations require high brightness for brake and direction lights, while tail lights require lower brightness.

Taking into consideration factors such as cost and aesthetics, the majority of RCL design is composed of conventional lamps and LEDs. Market share of the design with conventional amp and LEDs gradually decreased in 2013, while shares of RCL using solely LEDs increased.

2011 LED For RCL Application (Volume) 

 

Source: LEDinside

 

【LED Backlight Market Development Trend- Analysis of Second Generation LED TV’s Added Value And New LED Materials】

Quantum dot became an important new LED technology that display and package manufacturers are focused on in 2H13 and 1H14 to create market segmentation, and improve color saturation by using either QD LED tubes or optical films. Under the pretext of competitive pricing in display applications, it’s important for companies to lower product costs. For example, manufacturers should reduce the costs of 4K2K TV to 1.3 times or below the price of same sized HD TV, and control the price of QD TVs at 1.5 times or below of HD TV. This measure can greatly increase sales performance. 

TV Price List (LED TV v.s. QD TV)

 

Source: LEDinside

 

LEDinside 3Q13 Silver+ Member Report Outline

[LED lighting market development – Outline]

Residential Lighting Market Outlook 

• Definition of Residential Lighting
• Presentation of Residential Lighting
• Luminaries Requirements for Residential Lighting
• Lighting Scenarios Analysis
• Global LED Residential Lighting Market Dynamics – Regional Proportion of Production Volume

North America 

• Market Overview – LED Penetration Rate in North America, Observation of North American Residential Lighting Market from New Home Sales
• The Bulb Prices in U.S. Show The Fluctuation Trend, And Have Reached A Sweet Point 
• Policies – Energy Star, Title 24
• Manufacturers’ Trends – 40W / 60W LED Bulb Pricing Strategy

Europe 

• Market Overview – European Residential Lighting Market Analysis, European Incandescent Lamps Ban Policy Influence—Chinese LED Lamps Exports To Europe, and Development of European LED Manufacturers
• Policies – European LED Residential Lighting Certification Standards, EU Energy Directive 20-20-20 Goals & 2011 Energy Efficiency Plan 
• Manufacturers’ Trends – IKEA, Philips, Osram, Zumtobel 

Japan 

• LED Light Bulb – LED Bulb Shipment in 2012 and 2013, Analysis Of LED Bulb Price Trends And Market Share 
• LED Bulb Pricing Strategy – 40W/ 60W Equiv. LED Lamp Pricing Strategy 
• Lighting Manufacturer’s Future Strategy – Three Major Strategies of Lighting Manufacturers’ Development (Panasonic, Toshiba, Sharp, Toshiba, Hitachi, Iris Ohyama)

China

• Market Overview – Analysis of China’s Residential LED Lighting Market Scale And Estimations Of LED Penetration Rates, In 2013, Fiscal Subsidies Were Extended To 30 Million LED luminaires Including Residential Lighting Products, Obstacles of LED Residential Lighting Penetration Rate.  
• Pricing Strategy – China’s 40W / 60W Equiv. LED Lamp Price Trend, Survey of China’s Main Residential Luminaire Prices, Observations of Chinese Lighting Manufacturers’ LED Lamp Pricing Strategies 
• Manufacturers’ Trends – Three Main Groups in China’s Residential Lighting Market (International Brands, Domestic Conventional Lighting Brands, and Emerging Domestic LED Lighting Brands.)
• Major Manufacturers – Opple, MLS, IKEA China 

Emerging Markets: Taiwan / Thailand

Taiwan 

• Market Overview – Analysis And Forecast Of Taiwan’s 2012-2013 LED Bulb Shipment Volume, Top Five Ranking Taiwan LED Bulb Shipment Manufacturers, Is there Chance for LED Bulb to be Included in Grant Projects in Taiwan? 
• Pricing Strategy – 40W / 60W Equiv. LED Lamp Price Trend, Taiwanese Lighting Manufacturers’ LED Lamp Pricing Strategies 

Thailand

• Thailand Formulates a Five-year Power Development Plan to Promote LED Lighting  

Appendix: Bulb Specification In Major Regions

USA

Europe

Japan

China

Taiwan (LED Packaging Manufacturer’s Supply Chain)

 

【Automotive Lighting Market Development Trend-Outline】

Car Market Demand 

• 2Q13 Regional Market Performance 
• Highlight In Specific Markets 

RCL Development History And Driving Forces 

LED Development In RCL Application 

• RCL Product Development 
• Differences Between Direction Type And Plane type Design 
• LED Development Trend in Power and Usage Volume 

Trend In Penetration Rate of Conventional Lamps And LED Lamps in The RCL Market 

 

【LED Backlight Market Development Trend- Outline】

Analysis of Second Generation LED TV’s Added Value And New LED Materials 

4K2K TV

• Can 4K2K TV Stimulate LED Backlight Market Demand?
• LED Usage Volume For 40”~84” TV
• Market Opportunity And Challenge Analysis

QD TV

• QDTV Owns Higher Color Saturation
• Current Quantum Dot Technology Solutions 
• TV Price List ( LED TV v.s. QD TV)
• QD TV Strength and Weakness 

EMC

• Lead Frame Solutions For 1W And Above LED In Backlight Application
• Comparison Between LED Lead Frame Material And Characteristics (PPA、PCT、EMC)
• Lead Frames In Response To LED efficiency In Backlight Application (PPA、PCT、EMC)

 

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