Global LED lighting prices are decreasing, should manufacturers rearrange the market?

The LED lighting market is benefited from the progress of LED technology and the market scale continues to expand. According to the latest research data from the LED research center of the Group Consulting Group (LEDinside), the scale of the LED lighting market will come to US $33 billion 300 million in 2019, and the penetration of LED lighting will increase from 22% in 2017 to 63% in 2019.

However, in recent years, the international lighting factory has been evacuating the general LED lighting market in recent years, and GE's plan to sell its lighting business has already come to a new development. After selling OSRAM to the LEDVANCE, the company recently announced that it would sell its lamps and lanterns. In recent years, the proportion of general LED lighting products has been reduced.

The continuous growth of general LED lighting has caused global manufacturers to withdraw and trigger the reshuffle of the market. The key must be from the price of general LED lighting products.

At the beginning of the development of LED lighting market, attracting a large number of enterprises to invest and compete, coupled with the progress of technology, reduced the cost of LED production. In the case of falling costs and competitors, the price competition is fierce. The price of general LED lighting products has dropped sharply. From seven years ago, the price of a LED lamp equivalent to 60 watts is 5 times the current price. We can see the sharp decline in prices and the erosion of manufacturers' profits.

LEDinside began tracking market price information at the beginning of the development of LED lighting market. According to the historical data of LEDinside, the price of a LED lamp equivalent to 60 watts is about $45-50 in January 2011, and by July 2018, the price has dropped to less than 10 dollars.

In addition, LED lighting brands and suppliers continue to face the pressure of declining product prices. This year, the Sino US trade war has continued to burn and even spread to the LED industry. This has led to the fact that American manufacturers buy LED components from mainland China's exports and are afraid to be heavily taxed. The Sino US trade war has brought uncertainty to the industry, and whether it will trigger more manufacturers. Rethinking the layout strategy of its LED lighting market is also worth further observation.

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