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LED LIGHTING APPLICATION RANGE EXTENDS, TO A MARKET SIZE OF TRILLION YUAN IN 2020

Days ago, the reporter learned from the 8th Clean Energy Ministerial Conference—Global Lighting Challenge Summit that, more than 12 semi-conductor lighting companies have voluntarily made a commitment, which includes Forest Lighting Co.,Ltd, Shanghai Sansi company, Sengled Co., Ltd etc. that in 2 years they will sell more than 3,29 billion LED fixtures & 5770 thousand LED street lightings in total. Which means, the total energy consumption saved will exceed 45 billion K/watt in 2017-2018, that is about half of the electricity generated annually by Three-Gorges Dam (93.5 billion k/watt electricity generated in 2016), and the carbon dioxide emission will be reduced by 40.5 million tons.

The summit, co-organized by global lighting challenge working panel, and International Semi-conductor lighting association, has carried out a series of research and discussions over high efficiency lighting innovation & cooperation. The experts said that LED lighting plays an important role in energy-saving, emission reduction, and global warming. The summit will enhance the rapid development of LED lighting industry.


Annual growth has exceeded 30%

Currently, lighting takes up 14% of electricity consumption in China, and 15% globally, that is a big cause of greenhouse gas emission and energy consumption. The experts said that, in order to encounter the challenge of energy consumption and climate change brought by lighting, China is actively promoting high efficiency & high quality lighting system, which greatly enhanced the development of LED lighting industry in China.

The data indicated that, during the Twelfth Five-Year plan period, China’s lighting industry annual output value growth has exceeded 30%, which is only second to real-estate industry; the localization rate of chips has reached 75%; 31 companies whose primary business is lighting have gone listed and LED products export has reached tens of billions of dollars. Only in year 2016 the LED lighting output is about 8 billion pieces of products, and the industry size reached 521.6 billion yuan, annual growth is 22.8% compared with year 2015. China has become the biggest LED lighting manufacturer, applier and export country in the world.  

During the 12th Five-Year Plan period, the development of LED industry in China greatly benefited from the government support, immense market need, improvement of supply chain and system standard, as well as efforts made by the companies themselves.


The head of energy-saving & environment protection department of National Development & Reform Commission, Mr. Zhao Huaiyong said that, in order to boost the development of LED lighting industry, government should make efforts on 4 aspects: firstly speed up weeding out the traditional incandescent lights which are high energy-consuming, high carbon dioxide emitting; secondly, actively promote the high efficiency lighting products, and implement energy-saving engineering projects. Government subsidies could be adopted to promote the energy-saving products, amid them, 780 million pieces of LED lights shall benefit from the subsidy, which will save 32 billion k/watt of electricity, reduce 24 million tons of carbon dioxide emission. Thirdly, speed up semi-conductor lighting industry growth. Fourthly, continue perfect the LED lighting products standard testing & certification system, speed up the norms of the market to build a healthy industry.

“The development of LED lighting industry is typically demand-driven, by the large population in our country, and by the urbanization; the rapid economical growth is faced with huge energy consumption pressure etc.”The then vice minister of technology department, chairman of international semi-conductor lighting association (ISA), Mr. Cao Jianlin said that, there are more than 1 hundred LED lighting companies in China, 90% of them are private companies which are the fresh troops in the development of LED industry. They’ve continuously enhanced the R&D within the industry and form a complete industry chain of LED lighting.

Mr.Cao Jianlin also said that, the Chinese government put a great effort in pushing forward the LED lighting industry, has implemented “semi-conductor energy-saving industry planning”, National semi-conductor lighting project, “ten thousand LED lamps in ten cities” pilot demonstration project etc., These projects and policies have built a beneficial environment for the development of LED lighting industry.

Opportunities and Challenges co-exist

Although China has made a great achievement in the LED lighting industry, the industry & technology development and market requirement have brought changes to the industry, the lighting companies need to pursue quality & industry health instead of pursuing high lighting effect only, technology-driven has been turning to application-driven, and the market penetration rate has been speeding up. Such new trends have presented new opportunities & challenges to the LED lighting industry.

Mr.Cao Jianlin also said that, LED lighting application range will gradually extend. Although LED general lighting remains the first driving force in the application market, but automobile lighting and other applications which surpass lighting will become new “blue sea”. In the meantime, new backing material and new technical route are progressing fast, LED lighting will further merge with new technologies and new materials such as graphene, internet of things, telecommunications, sensor technology, integrated circuit, VR etc., new innovative applications with explorative and subversive functions will emerge and bring great opportunities for the development of LED industry. Besides, new application requirements such as safety, health and wisdom will bring new market entry points for LED lighting development.

Mr.Cao Jianlin believes that, “Made in China 2025”, “one road, one belt” initiatives have brought a good policy environment for LED lighting industry.

In the mean time, “Led lighting development is weak in backlight application market. In 2016 LED backlight output value is 52 billion yuan only, which accounts for 12.1% in the total market”, Mr. Cao Jianlin believes that original innovation capacity and high-tech innovation capacity of LED lighting is weak, while structural overcapacity exists, hence transformation and upgrading are in urgent need; as well as need for establishment of national brands, exploration of new commercial modes etc. There also exist other problems such as homogeneous competition and cutthroat competition, lack of efficient supervision etc.”


The rapid development and technology upgrade in the LED lighting industry brings unprecedented challenges in the setting of LED standards, for example there exist too many standards and are not unified. Mr. Hua Shuming, director of Global high efficiency lighting technology cooperation center & National Lighting testing center said that, there are more than 300 lighting standards in China, and only 23 standards are published for LED lighting products. In the mean time, the designation of standards cannot catch up with the upgrading of technology, which hinders the development of LED lighting industry.


Broad Future Market

Confronted with LED opportunities and challenges, industrial experts think that, with national policies supports, China will develop LED latest technology, push LED combines with others industrials to explore new markets share, in order to lead healthy develop of the whole market. At the same time, China also take actions on energy saving and reducing pollution.

Zhao Huaiyong addressed that pushing LED develop rapidly has four advantages: firstly, enhance LED top level design; secondly, promote core high-end technology becomes industrialization, applications on patented LED technology and products to optimize itself, besides, R&D should be realized on demand lighting, smart lighting, and surpass lighting etc. to push system integrated develop to boost LED lighting and internet deeply merged, making social lighting products industrialization. Thirdly, Speed up LED application to public facilities like cities lighting, transportation, industrial and residential, and auto, agriculture and medicine etc. Fourthly, push International cooperation between companies.

In order to reconcile market needy and slow regulation making, Dr.Li Peng from National Standard Institution said, firstly, we should take high efficacy as guide light of standard making; Secondly, we should take accepted and acknowledged standards.

Cao Jianlin requested that, China LED light should be combine well high power, detection sensor, digital, internet, multimedia, big data technology and smart city, push surpass lighting, smart lighting ,off grid lighting.“China LED market will reach thousand billion yuan, genera lighting will occupy more than 70%, energy saving will reach 340 billion KWh ”