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In many cases, the end of the year gives you time to step back and take stock of the last 12 months. This is when many of us take a hard look at what worked and what did not, complete performance reviews, and formulate plans for the coming year. For me, it is all of those things plus a time when I u...
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CCID Consulting: China’s Semiconductor Lighting Market Grows 32.6% in 2011, with Rapid Development of Innovative Applications

A CCID Consulting's survey on China's semiconductor lighting market reveals that the substitution effect of LED on the traditional lighting market has greatly boosted the demand on semiconductor lighting, thanks to the state’s policy supports, manufacturing cost reduction and breakthroughs in luminous efficiency and other technologies. By the end of 2011, the size of China's semiconductor lighting market reached RMB 21.14 billion, up 32.6% year-on-year. Meanwhile, the huge market potential will promise a fast and stable growth of China's semiconductor lighting market in the coming years.

Figure 1 Size of China's Semiconductor Lighting Market, 2008-2011

http://event.ccidconsulting.com/en/images/en-1114-1.jpg

Source: CCID Consulting, October 2012

Figure 2 Applications of China's Semiconductor Lighting Market in 2011

http://event.ccidconsulting.com/en/images/en-1114-2.jpg

Source: CCID Consulting, October 2012

1. Features of China's Semiconductor Lighting Market in 2011

(1) Newly issued state policies facilitated the development of the semiconductor lighting market on a large scale.

In 2011, China’s Ministry of Science and Technology proposed in the 12th Five-year Plan on Science and Technology Development that by 2015, the semiconductor lighting market should take more than a 30% share of China's general lighting market, with an expected annual output value of RMB 500 billion. Meanwhile, efforts should be made to vigorously promote China's semiconductor lighting industry to edge into the world's top three.

(2) Although high-end application markets are still dominated by joint ventures, domestic enterprises have been enhancing their competitiveness.

At present, the high-end application markets including LED automobile lighting market and LED general lighting market are still dominated by manufacturers from Europe, the US, Japan and Taiwan. Over years of development, however, domestic enterprises have significantly enhanced their competitiveness in a fast way, indicated not only by the continuous improvement of technologies, but also constant expansion of their business scales.

(3) Business model and relevant standards need improving.

Over the past years, the development of China's LED road lighting was far below market expectations. China's LED road lighting market mainly relied on the government's demonstrating engineering procurement, showing a high dependence on the national policies. For this reason, sound market environment and mature business development mode are the key to the healthy development of the market. Besides, at an initial stage of development, the market’s competition has not been regulated yet. Therefore, sophisticated product testing standards need to be developed.

(4) Enterprises expand by going public and M&A.

In 2011, China's LED enterprises entered a peak period of share reform and company listing. Meanwhile, in order to seize a share in the semiconductor lighting market, create a vertical industrial chain and improve the horizontal supporting systems, the LED industry initiated a tide of consolidation, M&A and internal integration.

2. Development Trends of China's Semiconductor Lighting Market

Figure 3 Forecasts on Size of China's Semiconductor Lighting Market, 2012-2014

http://event.ccidconsulting.com/en/images/en-1114-3.jpg

Source: CCID Consulting, October 2012

(1) Reducing lamp cost will be key to the development of semiconductor lighting.

Currently, cost is one of the biggest problems hindering the popularization of semiconductor lamps. As lamps also need driving power supplies, heat dissipation parts, lenses and other parts, cost reduction of such parts is equally important. In addition, improvement of light quality is crucial to the promotion of application of such lamps in interior lighting which highly focuses on color temperature and color rendering.

(2) Products will expand to diversified application fields.

Semiconductor lighting products are gradually shifting from simple decoration lighting to functional lighting, such as high-power city landscape lighting, road lighting, automobile lighting and industrial lighting. Besides, LED light products have been increasingly used for special-purpose applications in areas including explosion-proof lighting, semiconductor manufacturing lighting, low temperature lighting, ultraviolet disinfection and medical lighting.

(3) Demand for power-type and surface mount-type LEDs will grow rapidly.

With the development of the functional lighting market, the demand for power-type and surface mount-type LEDs will grow rapidly. Besides, the growing LED application in automobile lighting will also drive the demand for such LEDs.

(4) Smaller and integrated semiconductor lighting products will be popular.

As smaller electronic products with lower power consumption will inevitably prevail, the terminal product manufacturers will require smaller parts, including LED products.

About CCID Consulting Co., Ltd.

CCID Consulting Co., Ltd., the first Chinese consulting firm listed in the Growth Enterprise Market (GEM) of the Stock Exchange of Hong Kong (HKSE: 08235) and the first consulting firm which gets ISO 9001 international and national quality management system standard certification, is directly affiliated to China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Xi’an, Wuhan and Nanjing with over 300 professional consultants. The company’s business scope has covered over 200 large and medium-sized cities in China. CCID Consulting provides customers with public policy establishment, industry competitiveness upgrade, development strategy and planning, marketing strategy and research, HR management, IT programming and management services, investment and financing, and M&A. The company's customers range from government departments at all levels and diversified industrial parks, to industrial users in strategic emerging industries in new generation information technology, energy saving and environmental protection, biological science and technology, high-end equipment manufacturing, new materials, and new energy. CCID Consulting commits itself to become the No. 1 advisor for urban economy, the No.1 consultancy for enterprise management, and the No. 1 branch for informatization consulting in China.

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