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If you don't know the latest trends in LED lights, now is the best time. LED light-emitting diode bulbs are becoming a household name in most countries in the United States and Western Europe, and will soon be red and China and other countries.
In many regions, US manufacturers and retailers (such as Home Depot, Staples, Wal-Mart and IKEA) are maximizing their market share as people learn about the characteristics of LED lights and their lower selling prices. Many analysts predict that LED lighting will bring an epoch-making change to the home market. Market data for the second half of 2013 showed that American consumers are mostly aware of the advantages of LED lights.
With an average life of 20,000 hours and a warranty period of more than 3 years, LED lights can increase energy efficiency in homes, businesses and industries, helping users save on electricity bills, which in turn helps limit power plant emissions and maintain the grid. Compared with traditional incandescent lamps, LED lamps are expected to have a power saving capacity of more than 80, which means users can recover the purchase cost within 510 years. Commercial and industrial cost recovery periods can be as low as 24 years.
Major countries and regions in the world have successively issued policies and regulations for the complete elimination of traditional incandescent lamps and fluorescent lamps, including production, import and sales. However, ordinary users have been accustomed to consuming incandescent lamps, and it will take time for LED lights to enter thousands of households.
Although energy-saving fluorescent lamps have a certain share in the market, they also have obvious defects. This bulb takes some time to warm up, does not dim, emits light, and the bulb contains mercury and cannot be recycled. Therefore, the fluorescent lamp is neither green nor convenient.
Pruitt and Sinkewen, research analysts at HIS, a world-renowned information and analysis company, predict that sales of LED lights will increase year by year until peak in 2019. They believe that global sales of LED lighting will increase from approximately $3.6 billion in 2013 to more than $7 billion in 2016.
Just in the past November, the company based in Durham, UK, targeted the US market and opened a price war on LED lights through TV commercials. Industry competitors have responded.
The price of LED lights has been hovering around $20 for many years. Nowadays, Cree's 40 and 60 watt energy-efficient LED lights that can regulate and emit soft white light are close to $5.97. The indoor floodlights, which are 65 watts in energy and emit a soft white light, have been priced at less than $10. Cree has announced that a soft white light with an efficiency of 75 watts will land in the US market in February next year.
At the time of writing, the competition dominated by the US market mainly came from Cree and Philips. And HP's green smart solution, because it is assembled in China, is easy to promote in the Chinese market. In addition, OSRAM, Shangyu Lighting and Switch are all struggling to catch up.
But when it comes to price competition, analysts say that the profit margin of home lighting has not been high, and it may be further compressed in the future, unless production and sales reach a certain height. Self-owned products will have certain advantages through sales through IKEA and Wal-Mart.
Lex Research analyst Paravi said: No one expected the price of LED lights to drop rapidly by $10, which is a huge impact on the entire market. Of course, some industry analysts believe that market competition will accelerate technological progress and prices continue to decline.