China’s LED Development Direction by 2015

LED lighting is increasingly becoming popular due to its unique advantage of energy saving, environment protection and long life. Various countries pay growing attention to the development of LED. Recently, China National Development and Reform Commission and Ministry of Science and Technology have jointly released the LED industry plan, reflecting the future development direction.

First, China’s LED industry will continue to increase market shares.

By 2015, production of filament lamps over 60W will be eliminated, with the market share expected to drop to 10 percent. Traditional energy saving lamps will account for 70 percent of lighting product market. LED lighting products, on the other hand, will account for 20 percent of the market. In addition, LED LCD backlight, landscape lighting market share will rise to 70% and 80%, respectively.

Second, the industry scale steadily expands, key enterprises increase strength.
According to the plan, China is projected to see output value of LED lighting industry achieve annual growth rate of around 30%, further reaching 450 billion yuan in 2015 (where LED lighting products accounts for 180 billion yuan). The industrial structure continues to optimize, establishing a batch of distinctive-characteristic semiconductor lighting industry gathering areas. In addition, 10-15 leading enterprises that grasp the core technology, have more independent intellectual property and own well-known brand and strong competitiveness will be formed.

Third, significantly enhance technological innovation capacity and further improve the standard testing and certification system.

The plan also lays out nationalization of chips of LED products reaching 80 percent. Luminous efficiency of core devices will step into the leading position of the world. Production of key equipment and materials will also be nationalized, as well as 70 percent of testing equipment.

With the help of government’s policy support, more and more LED enterprises jump into this segment, resulting in the serious oversupply in 2012. But in fact, looking around the entire LED industry in China, despite the large industry scale, the quality of LED lighting products shows many problems, such as low quality, counterfeit product. The formulation of this plan not only indicates the future development direction of China’s LED industry, but also can help improve the LED lighting segment and quality problem.