China's lighting market grows fastest, LED giants in the world want to expand in China

Professionals predict that in 2021, LED will occupy more than 52% of the global market share of commercial lighting bulbs, and that the decline in LED prices and the substantial increase in life expectancy will reduce the overall value of the commercial lighting market.

China's Lighting Market Grows The World's Fastest World LED Giant Expands in China

The rapid urbanization process in China and the rapid growth of the automotive industry have led to a surge in demand for LED lighting products. According to an authoritative survey, future optoelectronic semiconductors such as LED components will see strong growth in China, and the average growth rate will be twice that of the world.

Under the enticing prospect, OSRAM Group, one of the world’s largest light source manufacturers, signed a cooperation contract with the Wuxi New District on the 25th. The first LED chip packaging base established in China is expected to be put into operation by the end of next year, with an initial investment of 250 million euros. Group executives revealed that the project will introduce OSRAM's most core competitive LED chip technology, aiming to “grab the beach” in key areas within the Chinese lighting market.

It is predicted that global LED components, laser diodes and other optoelectronic semiconductors will grow rapidly in the next few years, and the average growth rate in the world is expected to reach about 5%, while the fastest-growing region in the same period will be China, with an average growth rate of up to 10%. According to the McKinsey market survey, at present, approximately 35% of the global general lighting market is in the Asia-Pacific region. The Chinese market alone has exceeded 8 billion euros, and it is expected to at least double by 2020.

"Because of the rise of the Chinese market, we planned to build a chip factory in more than 20 cities in China a year ago. We finally chose to complete this largest investment in Wuxi, Jiangsu, and we expect to reach 500 million Euros in 5 to 10 years." Kamper, CEO of OSRAM Semiconductor stated. Following the landing of the Osram project, some well-known photovoltaic manufacturers, such as Taiwan and the United States, have announced that they will set up factories in Wuxi, Jiangsu Province to accelerate the development of the Chinese mainland market. Wuxi New District officials stated that the favor of the world's LED giants will “lead” a large number of global supporting manufacturers to China, triggering group effects.

According to local officials, benefiting from Wuxi’s leading position in the semiconductor industry in China, the city will take the opportunity to build the most concentrated LED environmental protection lighting industry base in China in the next 10 years, forming another 100 billion level after the Internet of things and photovoltaic industry. Industrial clusters.

In 2021 LED accounts for over 52% of global commercial lighting market

Recently, in an "Energy-Saving Lighting for Commercial Markets" report by an intelligence company, professionals predict that in 2021, LED will occupy more than 52% of the global market share of commercial lighting bulbs, and that LED prices will decline and their lifetime The substantial increase will reduce the overall value of the commercial lighting market.

It is reported that commercial LED revenue will maintain growth at an annual average growth rate of 8.5%, and will reach $2.7 billion in revenue in 2021. However, the overall value of the commercial lighting market in the next decade will be in a downward path, peaking at $54 billion in 2012 and falling to $30 billion in 2021.

Senior analyst Eric Bloom said: “In today’s world, people can hardly imagine that technology can hardly beat the tradition. In the next 10 years, the commercial lighting industry will have to be transformed. Because the direct sales revenue of the lamps will decline, manufacturers must rely more on lighting. Controls and services to make up for."

Finally, experts also stated that the trends of energy conservation and development in countries around the world are related to the local economic conditions and infrastructure. Europe and Asia are more environmentally friendly and are more willing to comply with government calls for energy conservation and restrictions. In the United States, the concept of energy saving is still at a relatively new stage due to the independent control of the states and the different electricity prices. Most of the regions in Africa, the Middle East, and Latin America and parts of Asia are making great efforts to carry out infrastructure construction. They are highly valued, while commercial lighting has not received enough attention and energy efficiency is relatively low.