Analysis of the two factors that affect the price of LED products and push the price down

With the global "ban" effect brought about by the LED market demand growth, coupled with the decline in product prices, LED lighting towards the process of popularization is moving forward at an unprecedented rate. According to the exhibition information revealed, 2014 Japan will continue to maintain a share of the global LED market for the first 25.6%, LED lighting market, North America to occupy the global LED 23.1% market share ranked second; the European Union and Chinese respectively to 20.3% and 16% of the market share followed.

As the LED in the field of industrial power, Japan in promoting the development of LED industry in the world in the process of role should not be overlooked, especially the 2011 earthquake occurred in Japan, under such pressure, Japan early in 2012 the full implementation of the ban on incandescent lamps, brought rapid growth of the LED industry. In 2012, Japan's LED bulb lamp accounted for 42.3% of the total sales of light bulbs, more than incandescent lamps. In fact, earlier in the EU concerned about the issue of energy saving, the ban white has begun. As early as in 2009 and 2010, the EU began to lock up 100W and 75W respectively, the incandescent lamp, and from the beginning of 2014 worldwide for 60W incandescent lamp of the ban, as early as two years ago in 2012 have been implemented in the European union. However, because of the EU and Japan are walking in the forefront of the market source to replace the energy market, the pace of opening up the corresponding early in the North American market, so in January 1, 2014, the U.S. government announced a ban white ", the North American market is becoming a new hotspot of industry growth. Authoritative market research agency survey shows that some of the current focus on the export date, the European companies have begun to move to the North American market. Data show that in 2013 the U.S. market for new products in LED lighting accounted for only about 10%, but in 2014 is expected to reach 25% in 2015 will reach more than 50%. Thus, from 2014 to 2015, the United States LED lighting market compound growth rate will remain at the level of 268%, the amount of related transactions will be as high as $11 billion 700 million.

Analysis of the two factors that affect the price of LED products and push the price down

Analysts pointed out that in the global lighting market as a whole stable pattern, the U.S. market is showing strong growth momentum, and will quickly pass to the global LED market. In addition, LED in emerging markets such as Brazil, India, Vietnam, Russia and other countries, the demand for LED lighting products significantly increased the market is showing rapid growth momentum, the relevant departments have also introduced a variety of planning and draft, to support the development of LED lighting industry. Lower prices boost LED lighting popularity in the industry pattern changes, while the global LED lighting products prices are also showing a ban white effect. Affected by the upstream chip technology and the rapid decline in prices, the price gap between LED lighting and traditional lighting products are gradually reduced, downstream LED lighting products prices have become an indisputable fact. At present, the price of LED lighting products is about 20% annual rate of decline, many regions, whether it is to replace the 40W or 60W LED bulb minimum price even less than $10, gradually approaching the price of traditional energy-saving lamps.

Some media pointed out that the impact of LED product prices, driving down the price of the main factors are two aspects: on the one hand is to enhance the technology so that LED production costs can be reduced. In recent years, the upstream LED chip field of huge investment, the current chip prices have dropped to 30% in 2010; at the same time, the new technology has become the industry enterprises emerge in an endless stream of future price pressures facing the powerful weapon LED. On the other hand, due to the huge prospects of LED lighting has attracted a lot of capital influx, the increasingly fierce market competition makes the price has become an important means of competition for LED companies. That the relevant research institutions, due to the upper and middle reaches of the gradual decline of price advantage, by 2014 the global LED lighting products prices still decline in space, is expected from 2013 to 2014 Chinese LED indoor lighting products prices fell by an annual average of about 20%, LED lighting market is expected to usher in a new round of the outbreak of the strong.