LED lamp prices decline effectively stimulating market demand

There are two kinds of driving forces: the improvement of the efficiency of light and the reduction of the manufacturing cost of the unit. The enhancement of light efficiency is to achieve the same brightness and consume less energy. Can enhance the light efficiency from many aspects, such as the extension of selection optimization design better substrate and epitaxial material, chip package using flip chip can make more light into the chip, module level of optical system can reduce the loss of light.

According to the U.S. Department of energy released in 2011, solid state lighting manufacturing roadmap, LED lamp foundry and LED packaging prices fell 30% in 2010~2015 during the year, in 2015~2020 during the year fell 10~15%.

The decline in prices can effectively stimulate the demand for LED lamps, while the decline in the cost of LED prices are endogenous motivation. There are two kinds of driving forces: the improvement of the efficiency of light and the reduction of the manufacturing cost of the unit. The enhancement of light efficiency is to achieve the same brightness and consume less energy. The reduction of manufacturing cost is the cost control of OEM, including reducing the cost of materials and improving the efficiency of manufacturing.

LED lamp prices decline effectively stimulating market demand

A part of the actual cost of the total cost of only LED chip, 10W bulb package accounted for 47% of the total cost, cost of the chip may account for only about 15%, other costs include packaging, heat, structure and power cost. The decline in the total cost is not only related to the chip manufacturing and packaging, structural parts, heat dissipation, power supply design and manufacturing also have a greater impact on costs.

LED industry Moore's law - Haitz law states that the price of LED every 10 years for the original 1/10, performance is increased by 20 times. With the increasing of the size of the effect appeared to enhance the efficiency and delivery cost, will gradually decline, LED terminal product prices will be down to the range of acceptable to the public in general lighting market will open a hundred billion market, so many businesses to benefit from LED. The latest survey of the LED bulb retail prices, in November 2013, the global replacement of 40 of the retail price of LED bulbs fell by about $15.4 to $2.7%, of which China's regional prices fell by 20.6%. Instead of the traditional 60W incandescent bulbs commodity, the global average also fell 0.7% to $21.5. Recently, the price of LED lighting has dropped considerably, and the price gap with incandescent lamp is more obvious, which has laid a good foundation for the prosperity of LED lighting market in 2014.