LED Lighting is in the Rapid Development Stage with Penetration from 15% to 60%

General lighting is an industry with the same great market capacity as smart phone, and it is in the process of rapid growth. In view of general lighting market structure, energy-saving lamps accounting for almost the same proportion with incandescent lamps, about 40%, but the application of incandescent is downward, as the further implementation of global ban on the sale of incandescent lamps, the proportion of energy-saving lamps and LED lighting devices will increase.

LED lighting takes up 2% -3% of the all lighting products installed. However, according to the global data in 2012, the LED lighting products has accounted for 15% of the newly sold lighting products, the ratio in China is even higher.

For an industry, the period with the highest growth rate is when the penetration rate increases from 15 percent to 60 percent. LED is in the early stage of the outbreak period, it will complete the growth from 15% to 60% in the next 2-3 years, and then followed by 1-2 years to achieve the penetration from 60% to 80%. This is similar to the penetration of smart phones, has grown rapidly over the past two years, now its penetration reaches 60%. LED is in the state of smart phone two years ago.

Compared with the introduction period several years ago, growth of LED lighting has slowed in 2011, mainly because LED prices dropped greatly in 2011; the current price is only 30% of the price in the beginning of 2011. Overall shipments have doubled in growth, but output achieved growth of around 40-50%.

Overall LED market scale grew 26 percent in 2012, but the LED general lighting increased by 40%. In the next two years, LED lighting demand will remain an annual growth of around 100%, but by the impact of lower prices, output growth will be lower than the demand.

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