Global market research firm TrendForce's Green Energy Division LEDinside said that, with the decrease in LED price and the gradual improvement in LED efficacy, the cost recovery period has been shortened remarkably, greatly improving the intention of commercial and public departments worldwide to replace lights, formally launching the global replacement tide with LED lamps, and retrofit lamps like bulb and tube are most welcomed by market. LEDinside estimates that the global demand for LED bulb and LED tube will increase by 86% and 89% in 2014 respectively over 2013.

2012~2014 Global LED Lighting Market Volume Estimation – by product category

Terri Wang, an analyst of LEDinside, points out that the rapid decline in LED lighting product prices are stimulating the market demand, hence manufacturers have continued to introduce various LED lighting products with the prices close to that of traditional lighting products. Taking LED bulb as an example, comparing with 2012, the drop in LED bulb price in 2013 becomes more obvious, and the product price gap between different brands is gradually narrowed. Besides, the positive price strategies of first-tire manufacturers are expected to promote the development of LED lighting market greatly, and the demand driven by price incentive will be further fermented in 2014.

Price Trend of LED Bulb in 2013 (replacing traditional 40W&60W incandescent lamps)

In addition to manufacturers' pricing strategy, the projects and subsidy policies in regional markets also have made significant contribution to the improvement of LED lighting penetration. For instance, EnergyStar subsidy program is still carried out in various areas of North America, and the prices of subsidized lamps are more acceptable for consumers. In addition, national policies to forbid incandescent lamps have been implemented successively, which play great role in promoting LED lighting market development.

For the channels, since the regional characteristics of the lighting is fairly obvious, nations' regulations and consumer habits are different, which also indirectly affect the sales channels. After LED lighting has become flourishing, more and more LED manufacturers started entering the lighting market to compete with the traditional lighting manufacturers. They grab dealers or directly occupied large retail stores, making lighting manufacturers pay more attention to channel management.

Thus, in the fast-growing LED lighting market, lighting manufacturers are integrating resources and enhancing competitiveness by acquiring channels and technologies. Currently lighting manufacturers mostly adopt various wireless transmission technologies and overall intelligent control technology, or even adopt green building solutions with a variety of renewable energy. Consequently, there will be enormous business opportunities in the future.

In addition, brand image promotion can make premium easier for lighting manufacturers, and can also extricate them from the predicament of continuing price competition.

LEDinside analyst Terri Wang indicates that in 2013 and 2014, lighting manufacturers' main development strategies include lowering product prices, actively seeking projects and subsidies, building sales channels, enhancing competitiveness by acquiring channels and technologies, promoting intelligent lighting, and improving brand image.

LEDinside 2014 Lighting Level Package / Lighting Market Outlook

4Q13 Silver Member Report- Outline

Lighting Market Development Trend-Outline

Lighting Level Package Market Trend- Product Development and Strategy 

Trend One: Rising Commercial, Industrial And Outdoor Lighting Markets

Trend Two: Mid Power LED Market Value To Surpass High Power LED For The First Time in 2013

Trend Three: Emerging LED Specs For Backlight And General Lighting Applications; 3030 and 2835 have An Opportunity To Replace 5630

• 3030 LED Has Highest lm/$ And Is Widely Distributed In The Market And Most Preferred                                                                              
• 5630 LED: High Current Spec Applied in Bulbs And Downlight Products
• 5630 LED: Limited Room For Further Price Cuts As 5630 LED Price Closes To Production Costs

Trend Four: LED Manufacturers Speed Up COB Product Development

LED Lighting Market Trend- Worldwide LED Lighting Market 

Global LED Lighting Market Trend 

Regional LED Lighting Market Trend- Americas 

Regional LED Lighting Market Trend- Europe

• EU: New Eco-design Requirements For LED Lights 

Regional LED Lighting Market Trend- China 

Global LED Lighting Penetration Rate Generally Increases 

2012~2014 Global LED Lighting Market Revenue Forecast 

2012~2014 Global LED Lighting Market Value Forecast- By Regions 

2012~2014 Global LED Lighting Market Value Forecast- By Products 

2012 Global LED Lighting Market Value: Regions vs. Products 

2013~2014 Global Lighting Fixtures Demand Rapidly Growing 

2013~2014 Lighting Manufacturers' Development Strategies 

Global Lighting Market: Major Manufacturers Only Have A 38.2% Market Share 

Global LED Lighting Market: Major LED Luminaire Manufacturers Only Have a 50.6% Market Share 

Japanese Manufacturers Way Ahead Competition in LED Penetration Rate in 2012 

2013 European, U.S. and China Luminaire Manufacturers Penetration Rates Take A Big Leap Forward 

2013~2014 Lighting Manufacturers' Development Strategies 

Strategy One: Price Strategy 

• Lighting Manufacturers Actively Cut Prices to Stimulate Market Demand 
• Global LED Bulb Prices Gradually Approach To Conventional Lighting Product Prices 
• Wal-Mart Introduces Low-priced Product, 60W Equiv. LED Lamp Has Come To Sweet Point 
• The Introduction of New Technologies and Materials Will Also Be The Focus For Manufacturers in The Future 

Strategy Two: Bidding And Subsidy 

• LED Manufacturers Actively Seek Project Bidding and Subsidies in All Regions 
• In North America, LED Lamps Obtaining Energy Star Rebate Grow Rapidly With Subsidies Intensified 
• 74% Of the United States Is Covered By An Active Lighting Rebate Program in 2013 
• Cree LED Bulbs Obtained Energy Star Rebate And Had Substantial Growth in Shipments 

Strategy Three: M & A 

• Lighting Manufacturers Acquiring Channels And Related Technology Companies 
• Lighting Manufacturers Rapidly Enhance Competitiveness By Acquiring Channels and Technology- Philips / Acuity Brands 

Strategy Four: Intelligence System 

• Intelligent Lighting Enhances The Products' Added Value 
• Intelligent Products Development And Total Lighting Solutions 
• LED Residential Lighting: Promoting Intelligent Lamps And Wireless Control 
• LED Outdoor Lighting: Promoting Street Lamps Central Control System 

Strategy Five: Brand Image 

• Lighting Manufacturers Actively Promote Their Brands 
• Analysis of European Desk Lamps: VIBIA & Foscarini Have Higher Premium From Brand Image 

Strategy Six: Channel 

• Lighting Manufacturers Actively Develop Channels 
• Electrical Wholesalers Account For 64% Of North America Lighting Market Sales Channel 

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