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).