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World LED Replacement Lamps Market Will Exceed $ 3.7 Billion

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Strategies Unlimited, the leading market research company covering LEDs and LED lighting, projects unit growth of 30% in 2012 -- 2016 for LED replacement lamps. The global market will grow from $2.2 billion in 2011 to $3.7 billion in 2016. The revenue growth will be moderated by a forecast 14% per year decline in the average selling price. The research covered LED lamps that are used in existing sockets and serve as replacements for legacy lighting sources in residential and commercial indoor applications.

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China government sets 3 levels of LED subsidies

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LED lightings

China government pushes LED lighting commercialization through policies
Photo: Digitimes file photo

The China government will set three levels of LED subsidies. The first is for the central government to provide subsidies to LED firms to lower production costs. Second, provinces and province-level municipalities will set up policies to subsidize customers. The third level is for other regions to provide incentives according to local markets.

The price difference between LED and incandescent lighting is likely to decrease significantly due to such policies, said industry sources.

The market expects 2013-2014 to be the turning point for the global LED lighting market. China-based firms have also been prepared to capture market opportunities. Government policies can help to push commercialization of LED products.

The current problem with LED lighting is high prices. Consumers have been reluctant to purchase LED lighting and firms have not been able to push down costs. Hence by having subsidies, the China government believes market mechanisms will be set and completed during the 12th Five-Year plan period.

China introduced policies to replace street lights with LED lamps in ten cities. The industry expects growth in LED street lamps as the government adds another ten cities in the second phase.




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