The market for alternative LED lighting has become a red sea. Which segment of the LED lighting market should be entered by LED smes in 2016? At a market analysis meeting, analysts pointed out that LED industrial lighting will grow rapidly in the next few years. In 2016, the market size of LED industrial lighting will reach 2.932 billion US dollars, and then it will grow at an annual rate of more than 16%, and even grow at a rate of 24% in 2016. By 2018, the market size will reach 3.935 billion US dollars. LED small and medium enterprises are worthy of attention.
Analysts point out that the current LED civilian lighting sector has been a red sea. In 2015, Philips launched a low price war of LED bulb lamps, and leading enterprises followed suit one after another. The rapid popularization of LED lamp market price through large-scale cost made LED small and medium-sized enterprises also lose their profit margins, which made them miserable. The home and commercial lighting market is already a sea of blood, and small and medium-sized LED companies have little chance of winning, so they must shift to other segments to survive.
However, industrial lighting is mostly through invisible engineering channels, which can avoid price war and scale war, thus stabilizing profits. For small and medium-sized LED enterprises, the timely entry into industrial lighting, may bring a new opportunity for enterprises.
Europe remains the world's largest lighting market, followed by China and the United States. In 2016, the global LED industrial lighting market size reached $2.932 billion, which will grow at an annual rate of more than 16% thereafter, especially the growth rate of 24% in 2016. By 2018, the market size will reach $3.935 billion.
For the European market, which is already the world's largest lighting market, outdoor and indoor engineering projects have been launched in recent years, and the shipment of patio lamps and floodlights, the most widely used in industrial lighting, is also growing rapidly. Take LED patio lights for example. The most widely used LED patio lights that replace 400-watt metal halide lamps are 150 to 250 watts in power. At present, the product specifications on the European market are relatively stable, the color temperature is about 4000K/5000K, and the life is about 50,000 hours. Price swings are also modest.
The us market product subsidy policy applies not only to LED light-source products, but also to all kinds of outdoor lighting and industrial lighting fixtures. According to the DOE's recent report, traditional lamps such as HID and fluorescent lamps are economically inefficient in terms of energy efficiency standards, and as LED lighting becomes more efficient, these traditional lamps will be replaced, driving demand for industrial lighting replacement in the US lighting market.
In the US market, T-shaped LED products are the most popular. The US market pays more attention to long life. GE and Sylvania have launched products with a life of up to 100,000 hours. On the price side, some manufacturers go for the high price line, such as Cooper Lighting, which offers LED patio lights with a life of 142,000 hours. Some take the cost-effective route, such as CREE's cooperation with distributors, the price is lower.
To the China that gives priority to with main project project, invisible channel is richer, it is understood that already had quite a few enterprises do HID of professional do transform to do LED industry illume. The Chinese market is cluttered with product specifications and low prices. But almost all of them are CE and 3C certified.
The Japanese market has the strongest awareness of energy saving. In recent years, it has continuously launched high luminous efficiency LED patio lamp products, driving the local industrial lighting market demand. Japanese manufacturers pay more attention to the technology and quality of products, so they will develop from high luminous efficiency and cost-effective products. Japanese LED patio lamps have the most uniform specifications, with a life of about 60,000 hours and a color rendering index of 6 or more than 70. Japan also has the highest prices among the four regional manufacturers.
For industrial lighting, the main replacement power is the energy-saving effect of LED. Especially in the case of long-term use, as LED energy efficiency increases and prices fall, its recycling cycle will be shorter and shorter, and it will be more competitive with household lighting, which will also motivate consumers in the field of industrial lighting to replace LED lamps. In 2015, the growth rate of China's industrial lighting market slowed down slightly due to the impact of the corporate environment and economy, but the growth rate also exceeded 15%. The United States and Europe are even growing at 25 percent, and The Japanese market is growing at 20 percent.
As the number of LED manufacturers in the field of industrial lighting is relatively small, the market is relatively dispersed, and the competition intensity is also small, the market still has a certain development prospect. However, industrial lighting follows the engineering channel, and its customers are mostly the government, factories and enterprises, etc. Purchasing managers are relatively professional. In addition, LED industrial lighting has specific access and standard threshold, and needs to keep close contact with customers, only powerful enterprises can take a share in this market.