China LED street market observation: should not be too optimistic

In 2009, the Chinese government to cope with the global economic downturn, promote the revitalization of public projects economic program, LED Street investment plan is in line with their needs. Ministry of science and technology is expected in 2009 to promote the Ten City million lights LED Street deployment plan, but also to attract Beijing, Shanghai, Shenzhen, Wuhan, Heilongjiang, Hebei and other provinces and cities to actively participate.

Economic development and government public investment to promote the growth of the global street market

The size of a national street lamp market and the local road length and the type of national living standards. In theory, the longer the road length, the wider the important road (such as the highway), the higher the ratio, the number of street lamps will grow. However, the number of street lamps and the actual number of devices will be affected by the national standard of living. The higher the standard of living in the country, the people for road use frequency and road safety requirements, the relative number of street lamp device is also more. For example, in 2005 the Belgian road length of 170 thousand km, the number of street lights for the 1 million 750 thousand, Poland road length of Belgium is 2.6 times, up to 450 thousand km, but the number of street lamps is only about 2 million, only higher than Belgium by up to 12.5%.

According to the IEA (International Energy Agency) survey data show that in 2005 the global lighting (including streetlight) total consumption of 114TWh (Terawatt-hours=1 watt-hour * 10) to estimate the global energy market size of up to 130 million street lamp. With the global economic growth, the global street lamp market will show an increasing trend year by year, it is estimated that in 2010 the global street lamp market size of 1.6 to about 180 million.

2009 China LED street lamp market size of about 80-100 million

China is basically a lack of energy, with the economic development, energy supply problem is more serious. In October 2008, the Chinese government launched the "public institutions energy conservation regulations", requiring all levels of government units should be energy-saving products, equipment into the centralized procurement catalog, and strict monitoring of energy consumption. At the same time, also announced the "civil building energy conservation regulations" provides that the construction unit should choose the appropriate renewable energy for heating, cooling, lighting and hot water supply, etc.. Because of the implementation of the two regulations, provide local government procurement of energy-saving products LED and other related legal basis.

2009 China in response to the global economic downturn, promote public projects to revitalize the economic program, LED Street investment plan is in line with their needs. Taking Guangdong as an example, this year, Guangdong province started large-scale implementation of "Trinidad one hundred thousand" high power LED lamp industrialization demonstration project, in Guangzhou, Dongguan, Foshan, Zhongshan, Zhaoqing, Shantou City, the construction of the total mileage of 1500 kilometers, LED street lamp demonstration project size of about 100 thousand lights. The Ministry of science and technology is expected in 2009 to promote the Ten City million lights LED street lighting plan, but also to attract Beijing, Shanghai, Shenzhen, Wuhan, Heilongjiang, Hebei and other provinces and cities to actively participate. Due to China's unique planned economy, the central government led the planning will lead the direction of local government policy, in 2009 China's LED street lamp market will take off, the market is expected to be about 800 thousand.

Summary

Street lamp is basically a public project, government investment is the key factor to promote the development of the market. But any products without additional value or social benefits, government investment alone to form a perfect market is very difficult, because the government can make the market soared overnight, is likely to disappear overnight, especially in such a Chinese land policy implementation high country, market uncertainty more.

Recent Chinese government related projects and plans have been put forward, so that the majority of domestic manufacturers LED street lamp market size is more optimistic estimates. But in fact, many construction or government tenders, implement scale and scale plan have obvious gap, coupled with local interests disputes, manufacturers can obtain the expected market interest remains to be seen, cut should not be overly optimistic.