LED lighting market is booming

LED lighting market is booming but price competition has been causing profits reduce. According to this situation, Taiwan-based LED firms propose to improve technology and enter the automotive lighting market.Recently a common set of standards for LED lighting firms in Greater China was announced, which will help Taiwan-based firms enter the China market. This common set of standards will be expanded to emerging markets such as Russia, India, Southeast Asia, and South Africa in the near future.In recent years, Taiwan-based LED firms have actively obtained business in China. Now with this common set of standards, these firms have the opportunity to occupy a larger market share.

The major LED lighting markets across the world have been introducing standards and verification systems. Although the market is booming, products have been lacking consistent quality and this has become a barrier for further development. Lead by international brands such as Philips and Osram, the LED industry formed the Zhaga Consortium, aiming to standardize the interface of LED lighting. The consortium has been setting standards for the lighting engine interface for LED spot lights, street lamps, and indoor lighting. However, the standards are not mandatory.Some governments have attempted to nurture their domestic LED lighting industry by setting standards. For example, the Energy Star in U.S., an energy standard for consumer products introduced by the U.S. Department of Energy. To enter the U.S. market, LED components need to pass a test for 6,000 hours to obtain Energy Star certification. This has been regarded as an entry barrier to the U.S. market.

At the press conference, TLLIA chairman Chien Fen-ren said that in these years, LED lighting products have been specified by a variety of standards set by manufacturers themselves, so consumers could not tell the difference between all the LED lighting products shown to them. Unified specifications and standards would enable LED lighting product manufacturers to develop their own products in a relatively short period of time, while consumers would reduce a lot of trouble and loss due to the simple LED product specifications.China Solid State Lighting Alliance and the Guangdong Provincial Government yesterday signed a letter of intent at the Display Taiwan trade expo in Taipei. According to the TLLIA, more than 75% of LED lighting products are manufactured in China’s Guangdong Province. The letter of intent means a good start for the development of LED lighting products in Taiwan and Mainland China.LED lighting industry alliances in Taiwan and Mainland China yesterday came to an agreement on a series of specifications for LED lighting products in the next two years.