Incandescent bulbs disable, start LED lighting business opportunities

The government is committed to the promotion of energy saving policy, coupled with the decreasing cost of LED lighting, help motivate such opportunities, LED industry research firm LEDinside said, with disable incandescent bulbs, the emergence of 10W following LED lighting business, various lighting manufacturers have cut prices to attack every year nearly 20 billion stars of the incandescent light bulb business.

In the face of global climate change and rising energy prices, governments have begun to put some of the high energy consuming products as the primary object of the ban, such as incandescent bulbs is the most obvious case. Incandescent bulbs from the European Union and Japan began to disable the first fermentation, then the government has begun to follow up. From countries to disable incandescent bulbs to observe the timetable, LEDinside said that after 2012, the majority of countries began to gradually disable incandescent bulbs, but also to bring huge business opportunities for LED lighting.

Figure-1 global ban incandescent bulb schedule

Lighting accounts for 19% of global electricity consumption

At this stage, the proportion of the world's electricity consumption accounted for 19% of the total energy consumption, total energy consumption reached 2651 TWH. If we can replace the existing light source into energy-saving light source, is expected to save 30% energy consumption. If the further energy saving light source and sensors, smart grid and other related applications, is expected to save 30% of energy consumption. If 2030 can save 50% energy, reducing carbon dioxide emissions equivalent to 2 billion barrels of oil.

Figure-2 lighting accounts for the proportion of energy consumption

10W below LED bulb business opportunities emerge

The government is committed to the promotion of energy saving policy, coupled with the decreasing cost of LED lighting, help motivate such opportunities, research firm LEDinside said, with disable incandescent bulbs, the emergence of 10W following LED lighting business, various lighting manufacturers have cut prices to attack every year nearly 20 billion stars of the incandescent light bulb business.

However, due to the country's electricity tariffs and habits are different, so the penetration rate of national LED lighting will have a large gap. With the highest electricity in Germany and Japan as an example, although the LED bulb retail price is high, but with the use of electricity to save the life through prolonged, high retail prices will offset the problems in these areas, so the consumer acceptance for LED lighting is relatively high.

Especially in Japan, the Japanese government signed the Kyoto Protocol in 1997, the goal is to reduce carbon dioxide emissions by nearly 3 tons in 2012 compared to 1990. The Japanese government in order to catch up with the original commitment to the Kyoto Protocol, the introduction of a series of subsidies. For example, if the use of LED lighting business users, will give a certain degree of subsidies. As 2012 approaches, the demand for LED bulbs to replace incandescent bulbs will emerge.

The challenge of traditional fluorescent bulbs, LED bulbs have to be upgraded

Despite the incandescent bulbs out of the market, given the LED bulbs a lot of room for growth. But the big problem for LED lighting is to compete with the traditional fluorescent bulbs. At this stage, whether it is luminous efficiency or retail price, LED bulb is still difficult to challenge the traditional fluorescent bulbs. Therefore, in marketing, or to use life, save electricity, mercury and other issues as the main demands.

Figure-3 traditional light source VS. LED light source

7W's LED bulb, for example, in early 2009, a 7W LED bulb costs nearly $15 to $20, the retail price of more than $50. However, with the reduction in the cost of LED, the current cost of 7W LED bulbs dropped to about 12 U.S. dollars. Retail prices are down to $30. With the decline in the cost of LED bulbs, LED bulbs instead of incandescent bulbs, the more obvious advantages.

Cost comparison between Figure-4 LED bulbs and incandescent bulbs (Japanese market, ten thousand hours)

However, the competition with traditional fluorescent bulbs, LED bulbs still have room for improvement. At the same time, the retail price difference between the LED bulbs and fluorescent bulbs of the same brightness has shrunk from 20 times in early 2009 to about 12 times. With the development of technology in the future, whether it is the improvement of LED luminous efficiency, or the price of power related components, the cost of LED bulbs have the opportunity to further decline. According to DOE's plan, after 2015, the cost of LED lighting has the opportunity to substantially close to the traditional fluorescent bulbs.