LED lighting price decreases by 15 to 20 percentage each year

Published:2011-1-6 17:28:26 Author:Allen From:LEDEase Blog

It's said that the price of LED lighting products can drop by 15-20% each year, which strengthens competition in the market. In order to get more market, vendors reduce prices of LED lighting products. As a result, the price will reach one-third of current prices by 2015.

A price war has happened in Japan since 2009. LED lighting sales occupied more than 20% of Japan's lighting market by volume and 50-60% by sales value in 2010. And average price fell from 5,500 yen (US$67) to under 2,000 yen. LED light bulbs' market penetration is expected to achieve 30-40% in 2011.

Sources from LED companies demonstrated that the price competition has expanded to China, Europe and the US. Average price of LED light bulbs has fallen substantially to the current US$20-23, nevertheless, it is still high relative to the US$4-5 of conventional energy-saving light bulbs.

It is reported that some lighting manufacturers will bring in LED lighting products at end-use price of US$10 in 2011. Combined with distributors and retailers well-known for competitive price arranged to enter the LED sector, the price battle will only intensify in the future.

Conventional lighting giants Osram and Philips strive to break into the end-use market in LED light bulbs. In 2010, Philips used Asia markets such as South Korea, India and Singapore to test market reception. Meanwhile, Philips is reported to enter Taiwan's light bulb market in the first half of 2011.

Philips Taiwan stated that LED lighting will make the lighting industry change, which should attract many more new customers. Currently, with the development of market, elimination and price competition will be fierce, particularly in the low-barrier retrofit segment. In addition, the long lifespan of LED lighting will limit the lighting source market. Philips said that the luminaire segment will create production value five times that of conventional lighting applications. The luminaire applications will account for 80% of the overall LED lighting market in the future.

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