LED industry development encounters gold development period



The LED industry's development opportunities in a low-carbon economy LED can directly convert electricity into light, which is the fourth revolution in human lighting after fire, incandescent and fluorescent lamps. LED light source has the advantages of long service life, rich color and excellent energy saving performance. If 50% of China's lighting devices use LED lamps, the annual electricity consumption is equivalent to the power generation of two new Three Gorges power stations. With the global consensus on the development of a low-carbon economy, the LED industry will usher in valuable and rapid development opportunities with its performance advantages in the field of energy conservation and consumption reduction.
Product penetration rate continues to increase, open up a broad market space LED technology with its excellent performance in various aspects, is now widely used in outdoor lighting, architectural lighting, traffic lighting, indications, etc., is also widely used in mobile phones, LCD (LCD) backlight Source and car lighting, etc. Under the influence of the financial crisis, the global LED market in 2008 still increased slightly by 3% from 2007 to reach US$6.76 billion. After the penetration rate of LED products for mobile phones tends to be stable, LCD backlights and LED lighting will be the main driving force for market growth. It is estimated that 81% of notebook computers will adopt LED backlight technology in 2010. In the field of LCD TVs and displays, LED products have begun to accelerate penetration. The LED lighting market will also see explosive growth in the future. It is expected that the market size will reach 1.6 billion US dollars in 2012 and the compound growth rate in 2007-12 will reach 37%.
China's outdoor lighting market took the lead in launching and driving the rapid development of the industry. The Chinese government has attached great importance to energy conservation and consumption reduction and the development of a green economy. The “Ten Cities and Ten Thousand Cities” project carried out by the Ministry of Science and Technology marks the third rapid development opportunity for the domestic LED industry. The market scale brought by the replacement of LED road lights in China's urban road lighting can reach tens of billions of yuan. At present, compared with the global leading level, China's LED enterprise core technology and production scale are relatively backward, but we believe that domestic enterprises can grasp the golden opportunity of semiconductor lighting market development with local advantages and cost advantages.
There are still uncertainties in industrial development. The world's top five LED companies have woven a rigorous patent network worldwide by researching and developing their own core technology patents and guiding the direction of LED industry technology development. Domestic LED companies have encountered the “337 investigation” initiated by the US International Trade Commission on the protection of intellectual property rights last year, which has brought unfavorable factors to the development of the industry. LED lighting products still need to break through in terms of performance indexes such as color rendering index and light extraction rate. Excessive product costs also constrain the development of the industry. However, we believe that in the future, the LED industry will basically replicate the development history of the integrated circuit industry, that is, technology upgrades, cost reductions, and product penetration rates will continue to increase for the future development of the industry.

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