Lumileds ready to take on larger mid-power LED market share in 2016
2016-04-07 Post By: LongmangroupWith the first mid power LED selling out fast, it will be interesting to see whether the other queuing products are able to measure up. But one question is why Lumileds is choosing the super competitive mid power LED market?
Chinese competitors aggressive pricing strategies, combined with dwindling profits in the lighting sector, would have turned away most companies from the mid power LED sector to prevent waning profitability from shrinking any further. According to LEDInside latest statistics the 2835 LED package price declined the most by 20% to 40% in 2015, bringing average selling price to US$ 7.0 per 1, 000 units. The 40W LED bulb and 60W LED bulb prices also dipped 14% YoY and 16% YoY respectively last year.
Even Lumileds forecasted the LED lighting industry growth will be slowing to single digits this year. “I think (growth will) probably be at about 3-6%, ” said Bammi. Despite the increasingly hostile market environment, he was upbeat the company’s mid-power LEDs performance would grow exponentially, a strong contrast to the lackluster performance of the general LED lighting market. He forecasted demands in retrofit of conventional luminaires, and strong growth in the tube light (TLED) market in the next three years would support the company’s soaring low and mid-power LED business growth.
The company’s thriving low and mid power LED business backs this optimistic outlook. “So for 2016, it will be somewhere between 6 billion to 10 billion units (for low to mid-power LEDs combined), ” said Everett. “Monthly volumes will continue to grow somewhere around 500 million to 800 million units per month this year.”
Technology advantages and its solid foundation in LED chip manufacturing has given the company more leverage than competitors in the mid-power LED market. Lumileds launched its mid-power LED family range in 2012 which has grown exponentially since to comprise a comprehensive portfolio of standard and customized mid power LED products, including the more common 2835, 3030, 3535 and other specs, explained Everett.
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