Global LED lighting market penetration rate is quickly rising with market value expected to reach US$ 17.8 billion by 2014, according to the latest silver report by LEDinside, a subsidiary of global research institute TrendForce. Compared to 2013, the overall LED light product shipment volume will grow 68% YoY to 1.32 billion units in 2014.

Rapid fall in prices has been the source behind global LED lighting product replacement wave, said LEDinside. Light sources products including bulbs and tubes were most popular in the 2013 LED lighting product market accounting for 38 percent and 25 percent respectively. In addition, LED luminaire demands will also gradually rise in the future, especially in combination with smart lighting system applications and products. Therefore, LED lighting products are expected to further increase in 2014.

                            Global LED Lighting Product Demand in 2013

     Source: LEDinside

Among regional markets, governments in the North America market are strengthening their support for LED lighting. The U.S. Energy Star and other policy subsidies for lighting products have soared, and led to further LED lighting products price cuts. Manufacturers including Cree are optimistic about LED lighting market developments in 2014, and expect replacement lighting product sales to become a major business operation focus. North America LED lighting product demand volume growth rate is expected to reach 72% by 2014. 

In addition, the LED lighting market is growing rapidly in Latin America countries including Brazil. It is estimated, LED lighting product usage volume growth rate has reached 64 percent, with most evident growth in the LED commercial lighting market. There has not been any large scale subsidy policies in the European market, which is considered a mature LED market. However, the continent’s expensive electricity prices and cultural differences have driven continual demands for commercial lighting and outdoor architectural lighting applications. Accompanying ban of incandescent light bulbs policies in the next few years, the LED market is projected to continue its stable growth trend. The LED lighting product demand volume and growth rate is expected to reach 69% by 2014.

In China, emerging LED manufacturers are deploying strategies in the LED light source market. Conventional lighting manufacturers with brand and channel advantages are also using online shops and physical stores to explore LED lighting businesses. The Chinese government is also working hard to approve subsidiary policies, and taking an active role in urging LED industry developments. At the same time, the government is trying to solve upstream manufacturers oversupply issues caused by excessive subsidies and bankruptcy wave issues. LEDinside estimates China’s LED lighting market product demand growth rates is expected to reach 86% in 2014. 

4Q13 Silver+ Member Report- Outline

Lighting Market Development Trend-Outline

Lighting Level Package Market Trend- Product Development and Strategy 

Trend One: Rising Commercial, Industrial And Outdoor Lighting Markets

Trend Two: Mid Power LED Market Value To Surpass High Power LED For The First Time in 2013

Trend Three: Emerging LED Specs For Backlight And General Lighting Applications; 3030 and 2835 have An Opportunity To Replace 5630

• 3030 LED Has Highest lm/$ And Is Widely Distributed In The Market And Most Preferred                                                                              
• 5630 LED: High Current Spec Applied in Bulbs And Downlight Products
• 5630 LED: Limited Room For Further Price Cuts As 5630 LED Price Closes To Production Costs

Trend Four: LED Manufacturers Speed Up COB Product Development

      Source: LEDinside

LED Lighting Market Trend- Worldwide LED Lighting Market 

Global LED Lighting Market Trend 

Regional LED Lighting Market Trend- Americas 

Regional LED Lighting Market Trend- Europe

• EU: New Eco-design Requirements For LED Lights 

Regional LED Lighting Market Trend- China 

Global LED Lighting Penetration Rate Generally Increases 

2012~2014 Global LED Lighting Market Revenue Forecast 

2012~2014 Global LED Lighting Market Value Forecast- By Regions 

2012~2014 Global LED Lighting Market Value Forecast- By Products 

2012 Global LED Lighting Market Value: Regions vs. Products 

2013~2014 Global Lighting Fixtures Demand Rapidly Growing 

     Source: LEDinside

2013~2014 Lighting Manufacturers' Development Strategies 

• Global Lighting Market: Major Manufacturers Only Have A 38.2% Market Share 
• Global LED Lighting Market: Major LED Luminaire Manufacturers Only Have a 50.6% Market Share 
• Japanese Manufacturers Way Ahead Competition in LED Penetration Rate in 2012 
• 2013 European, U.S. and China Luminaire Manufacturers Penetration Rates Take A Big Leap Forward 

2013~2014 Lighting Manufacturers' Development Strategies 

• Strategy One: Price Strategy 

1. Lighting Manufacturers Actively Cut Prices to Stimulate Market Demand 
2. Global LED Bulb Prices Gradually Approach To Conventional Lighting Product Prices 
3. Wal-Mart Introduces Low-priced Product, 60W Equiv. LED Lamp Has Come To Sweet Point 
4. The Introduction of New Technologies and Materials Will Also Be The Focus For Manufacturers in The Future 

• Strategy Two: Bidding And Subsidy 

LED Manufacturers Actively Seek Project Bidding and Subsidies in All Regions 

In North America, LED Lamps Obtaining Energy Star Rebate Grow Rapidly With Subsidies Intensified 

74% Of the United States Is Covered By An Active Lighting Rebate Program in 2013 

Cree LED Bulbs Obtained Energy Star Rebate And Had Substantial Growth in Shipments 

• Strategy Three: M & A 

1. Lighting Manufacturers Acquiring Channels And Related Technology Companies 
2. Lighting Manufacturers Rapidly Enhance Competitiveness By Acquiring Channels and Technology- Philips / Acuity Brands 

• Strategy Four: Intelligence System 
  

1. Intelligent Lighting Enhances The Products' Added Value 
2. Intelligent Products Development And Total Lighting Solutions 
3. LED Residential Lighting: Promoting Intelligent Lamps And Wireless Control 
4. LED Outdoor Lighting: Promoting Street Lamps Central Control System 

• Strategy Five: Brand Image 
  

1. Lighting Manufacturers Actively Promote Their Brands 
2. Analysis of European Desk Lamps: VIBIA & Foscarini Have Higher Premium From Brand Image 

• Strategy Six: Channel 
  

1. Lighting Manufacturers Actively Develop Channels 
2. Electrical Wholesalers Account For 64% Of North America Lighting Market Sales Channel 

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