2009 global LED Market Outlook: government investment drives market demand

Back in time, the beginning of 2008, the global energy prices, with the advantages of energy saving LED has become a popular star industry, and constantly have new manufacturers across the LED industry. Optimistic about the LED industry in the lighting market and LCD backlight market penetration growth, continued expansion. In an optimistic market situation, the third quarter of 2008 by the global financial tsunami, the market demand in addition to instant freezing, lighting and other emerging market penetration is not as high as expected, Christmas light string, small size display backlight both market by consumers purchasing power decline, showing a decline phenomenon.

Due to a slowdown in demand, consumption at the beginning of the year to expand its production capacity, product price leads to huge downward movements, the overall market sentiment from prosperity to recession, but growth in the first half on the market, the negative effects brought by the offset part of the second half of the market downturn, in 2008 the global LED market in 2008 compared with a slight increase of 3%, $6 billion 760 million in detail, as shown in figure 1.

Figure 1 forecast global LED market size

2009 LED industry trends outlook

1 the negative growth of the market by the impact of the global financial tsunami, consumer spending has dropped significantly, delaying or reducing the purchase of related electronic products. Companies also reduce advertising spending and capital expenditures, which will make the LED market demand fell. The Christmas light string as an example, in the past year to purchase a new market in Europe and the United States always light string, create each year -- one billion yuan Christmas business, but in 2008, affected by the financial turmoil, the repeated use of the purchase of the 2007 consumer products or reduce the purchase quantity, the 2008 Christmas lights market shrinking, the market phenomenon will be expected in 2009 continued.

Although the negative impact of such a huge, but because of the LED in the lighting market, LCD backlight market saturation is quite low. And LED has energy saving, multi color, long life and other characteristics, is conducive to the creation of a new selling point of the product, which will make the system vendors more active use of LED, in order to attract consumer attention and consumer spending. In this emerging market driven, will reduce the negative impact of the global economic recession, the global LED market is estimated to reach $6 billion 700 million in 2009, compared with a slight decline in 2008 1%.

2 government investment, driven by market demand

In order to save the global economic boom, governments continue to expand public investment in the construction, expect to drive economic growth. In all kinds of public construction investment in the city, including street lighting, landscape lighting, indoor lighting and other public buildings are the focus of government investment, such as the China Ten City Lights Program (click to see more information, ten city lights) American LED City plan, the U.S. Department of defense in the Pentagon installation of LED lighting, this kind of plan will become an important key to lead the LED industry through the economic downturn. In many public works in the market, the LED lamp as the focus of development, there are 1.LED street price fell sharply mainly due to the LED, the investment recovery period is shortened and the lamp set 2 lights for outdoor lighting, people can actually feel the effect, LED lamp 3.LED lamp technology development is relatively mature, so the governments to promote LED when the main lighting to promote the project.

3 product prices continued to decline on the external environment analysis, LED need to narrow the gap between the price and competitive light source, in order to expand the application market and market penetration. And the outbreak of the financial tsunami in 2008, resulting in sluggish market demand growth in 2009, leading to more intense competition in the market price. On the internal environment analysis, with the help of production technology and process equipment improvement, LED production costs continue to decline. Changes in both internal and external environment have driven LED product prices continued to decline, driven by LED in 2008, the unit price decline factors, will continue to affect the development of the industry, making LED products continued to decline.

4 lighting market will continue to increase in energy prices, making LED, solar energy or alternative energy demand slowed down, but in the energy limited, under the premise of infinite demand, the future of this kind of energy industry is still quite optimistic about the prospects.

For the LED industry, the lighting market is the largest potential market, and with the improvement of LED light-emitting efficiency, as well as government subsidies or incentives, there are more and more applications in the field of LED to replace the traditional light source. LED is expected in the future development of the lighting market will be public and private, after the first business people, from small to large, from the point and the surface, the trajectory of development. Forecast 2009 lighting LED market will reach $630 million, an increase of 35% over the year of 2008.

5 standard forms gradually, accelerate the market application of LED applications continue to expand, and the light emitting structure and luminescence properties of LED light source, principle and traditional light sources, LED standard is gradually valued by the market, government and industry associations actively involved in the field of development, especially in the United States the most rapid development. The United States Department of energy (DOE) released in September 2007 Energy Star (Energy Star) of the solid state lighting standards, according to the standard lamp luminous efficiency is divided into 2 stages, the first stage of the highest light efficiency reached 35 lm/W; the second stage must reach the level of 70 lm/W, which refers to the residential and commercial lighting lamps for general lighting lamps, such as kitchen cabinet lamp, desk lamp, downlight, lights, outdoor trails outdoor wall lamp etc.. In addition, DOE is expected in July 2009 through the LED standard "Energy Star Criteria for product integral LED lamps", aimed at using LED as a light source to do a more clear specification, but also on the LED Replace Market also clearly regulate the efficiency of LED must be equal to or higher than 25W incandescent lamp etc.. Therefore, with the increasingly complete LED lighting standards, manufacturers by