China is the world’s largest producer, consumer and exporter for electrical lighting. National lighting manufacturers already exceed ten thousand, it accounts one third of global incandescent lamps production, and more than 80% of global compact fluorescent lamps (CFL) and Christmas lighting market, China takes 30% of global lighting fixtures exports market share. The Chinese lighting industry annual sales was over 350 billion yuan (USD58 billion) in 2011, about 390 billion yuan (USD65 billion) in 2012. China has become the production base for the global lighting products.
The Secretary-General of China Association of Lighting Chen Yansheng, made a domestic lighting industry report in November 2013 shows: In 2012, Chinese lighting products imports fell by 10.5%, and exports 30.04 billion U.S. dollars, increased 34.5%, LED lighting exports grew about 40%. 2012 Chinese LED lighting product sales about 42 billion yuan ($7 billion), accounting for 10% of total lighting sales, increased 100% compared to 2011. The largest lighting company in 2012 exports up to 10 billion yuan ($1.64 billion). The global LED package market in 2012 is $ 13.7 billion, with $ 3.1 billion used for lighting, accounting for 22.6%.
International aspects: The global highest penetration of LED lighting application is Japan, it reached a peak in 2010 and 2011, and the LED lighting market is about $ 3.7 billion in 2012. Following are U.S. and European markets, U.S. Department of Energy (DOE) is promoting solid-state lighting actively, the EPA also includes LED lighting in the Energy Star. Other developing countries are slower, but it’s a potential market.
Chinese market: For decades, the Chinese LED lighting industry developed vigorously, attracting thousands of nationwide companies added to this industry. The companies can be divided into three categories: First is the original enterprises engaged in traditional lighting, according to future market trends then produce both traditional lighting and LED lighting; second is the LED lighting related downstream companies, including the production of epitaxial silicon, package and application; third category is irrelevant businesses, those companies are attracted by the bright prospects of LED lighting.
Currently, the United States and Japan has a competitive advantage in the LED chip and LED component; Europe has a competitive advantage in the automotive lighting and functional lighting; Taiwan has largest production capacity for LED chip and package; Because of big corporate strategy, the South Korea is very potential. Chinese without core LED technologies, only supplies large quantity. At present, too many companies make LED lighting structural excess capacity, this situation is unsustainable, so industry consolidation is imperative, several companies joint together, and finally strength the LED lighting industry.