Affected by the slowdown in downstream market demand and the impact of the average price of the product, in 2008 China's LED market demand was 18 billion 540 million yuan, an increase of only 8.3% over 2007. In 2008 China LED product rapid price decline is mainly due to the following reasons: first, the slowdown in downstream demand, and domestic and foreign enterprises especially China Taiwan enterprises are actively expanding production capacity, led the market to a certain degree of overcapacity; second, Japanese manufacturers in the backlight market share for the first price, Chinese Taiwan companies have to cut prices to maintain market share; third, the display market after a period of low tide period in the year 2008, enterprises in order to gain competitive advantage in the display market have to provoke a price war.
The amount of demand from the market perspective, LED display, LED lights, LCD backlight and mobile phone keyboard and camera flash is located in the application field of four, the four major application areas of market demand accounted for 73.9% of the overall market. However, from the market growth rate, LED street lamps, automotive applications, landscape lighting market growth rate is located in the top three. 2008, LED street light compared with an increase of 141.2% in 2007, automotive applications grew by more than in the year of 2007, landscape lighting grew by more than 41.2% in 2007, compared with an increase of. With the introduction of relevant policies continue to support the country, the next few years, China's LED street lamp market will continue to maintain the momentum of rapid growth.
With the continuous improvement of the performance parameters of LED, the application field is more diversified, and the lighting market is gradually rising. However, due to the general lighting market is more biased towards the use of warm white light products, currently subject to a variety of factors, such as white light emitting efficiency, product prices and other factors, LED general lighting products in the short term can not enter the commercial. But due to the price of LED lamp is less sensitive than the general lighting products, and the use of cold white products can be, considering the use of LED products to reduce energy consumption to a great extent, very much in line with the development direction of energy saving and emission reduction at this stage of the country, to become the LED Street government attention highlights. Currently, local governments are actively promoting LED street demonstration project. In December 2008, the national Ministry of science and technology work of local science and technology conference held in Beijing on the nationwide "ten city lights" LED lighting demonstration project, preliminary design of the program is to LED in the city lighting demonstration project for the carrier, 10 city, every city in the promotion of LED lighting lamp above 10 thousand functions. As for the use of LED street lights will increase the cost of the Ministry of science and technology plans to take the LED lighting and traditional lighting compared to 30% ~ 50% of the amount of investment subsidies.
In the Ministry of science and technology development plan LED lighting at the same time, the local government also actively take measures to promote LED lighting applications, taking Guangdong Province as an example, Guangdong province puts forward "with thousands of lights" plan, from the beginning of this year will be in LED street Guangzhou, Dongguan, the scale of construction in Foshan, Zhongshan, Zhaoqing, Shantou City, ca. 100 thousand lights. Currently, Shilong, Shek Pai Town, Dongguan, 23 streets have been completed to install the 4100 LED high-power street lamp. In addition to Guangdong Province, Shandong Province, 10 thousand LED street lamps energy-saving projects, Liaoning Province, the city's energy-saving lamps have been launched 10 thousand energy-saving projects have been started in succession in.
State and local government support will become the main driving force to drive the Chinese LED street market growth, but with the rapid development of the market at the same time, there are still LED street lamp heat capacity difference, short service life, power quality and other issues, at the same time, the standard is not clear will to some extent affect the development of the market. Judging from the current situation, Taiwan, China has developed a LED related standards, which provides a good external guarantee for the popularity of LED street lamp. Our country should also develop relevant standards as soon as possible to ensure the healthy and orderly development of the market. At the same time, in the country to promote the LED street lamp, enterprises should seize this opportunity for development, and constantly improve the performance of the product and the quality of power supply LED street lamp market can continue to maintain rapid growth.
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