LED prospects bright, the US government strongly supports LED development


LED technology is gaining more and more applications due to its obvious advantages in terms of energy efficiency and environmental friendliness. In particular, the recent ban on the incandescent lamps in the United States, Canada and Europe has led to the rise of LED lighting equipment, thus stimulating market demand growth. At present, overseas companies are generally optimistic about the development prospects of the LED lighting market in 2014, and it is expected that this field will become the focus of future business and growth momentum.
US government support has increased. Beginning in 2014, the United States and Europe will gradually phase out 40W-60W incandescent bulbs. This policy gives LED lighting products a wider range of applications and stimulates global LED lighting manufacturers to accelerate production and further increase LED lighting penetration.
At present, the US government is gradually increasing its support for LED lighting. By increasing subsidies for energy-star certified lighting products, the price of LED lamps will decline. The US Energy Star program has been in place since 1992 to guide consumers in the selection of energy-efficient products. Consumers who purchase ENERGY STAR products will receive benefits such as tax cuts or direct subsidies for the project.
In this context, companies such as CREE, a US LED manufacturer, are optimistic about the development of the LED lighting market in 2014, and expect the sales growth of replacement lamps to become the next business focus and growth driver.
Cree is the largest manufacturer of LED products in the United States. It was founded in 1987 and listed on the NASDAQ market in 1993. Its lighting products have unique material technology and advanced white light technology, leading the world in the industry. Cree will release its last quarter earnings report on January 21. The company expects that boosted demand for strong LED lighting will increase its revenue to $4.22 billion in the previous quarter, up 24% year-on-year and 38% in gross profit. The previous increase was 1.8 percentage points. In the past year, Cree's share price has risen 85, and the current market value has reached 7.5 billion US dollars.
In the relatively mature market in Europe, although there is no large-scale LED industry subsidy policy, the high local electricity price has made the commercial lighting and outdoor building situation lighting applications have continuous demand. The industry expects that the market will continue to show steady growth in the next few years due to the impact of the comprehensive ban on incandescent lamps.
The major LED lighting companies in Europe include OSRAM, based in Munich, Germany. The company was once a wholly-owned subsidiary of Siemens. It left Siemens Systems in July last year and its products are widely used in public areas, offices, factories, homes and automotive lighting. The company’s share price in Frankfurt rose by 94 in the past year.
Japan's early penetration rate is high In the Japanese region where the energy crisis is particularly prominent, the growth rate of the LED industry is staggering. As early as 1998, Japan launched the 21st Century Light Project of Industrialization Project, becoming one of the earliest countries in the world to issue LED development policies. In addition, Japan is also the first country in the world to ban incandescent lamps.
With the large-scale support of the Japanese government, the LED industry has developed rapidly, and the penetration rate of LED lighting products has grown exponentially. Especially after the 3.11 earthquake in 2011, with the promotion of energy-saving measures triggered by the accident at the Fukushima nuclear power plant, the penetration rate of LED lighting in Japan has increased significantly. According to statistics, the current penetration rate of LED bulbs in Japan is 60-70, ranking first in the world.
Japan's most representative LED lighting manufacturer is Nichia. Founded in 1956, the company developed the world's first blue LED in 1993, and subsequently commercialized UV-yellow nitride LEDs and white LEDs, significantly expanding the field of LED applications.
South Korea, which also relies heavily on energy imports, also regards energy conservation as one of its important development strategies, and thus attaches great importance to the development of the LED industry. In particular, as one of the world's largest mobile phone manufacturers, the demand for mobile phone backlights in Korea has driven the development of the domestic LED industry. Among the three largest LED manufacturers in Korea, Samsung LED and LG Innotek are backed by Samsung and LG respectively. Although Seoul Semiconductor is relatively independent, it is not inferior in the technology field. The company launched Acriche in recent years. The converter can be directly applied to the semiconductor lighting technology of the AC plug.

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