The maturity of LED lighting products is worrying. Currently, the hottest LED product in China is the LED street light. Under the promotion of the Ministry of Science and Technology's "Ten Cities, Ten Thousand Lights" program, it is advancing with astonishing enthusiasm. Many people have entered this market, making it appear to be the first rising field in lighting. Shenzhen LED display screens are currently popular. There are 21 pilot cities nationwide for sports event LED displays, with an estimated one million lights. The Ministry of Science and Technology plans to approve 50 cities next year, with an estimated two million lights. This is a Chinese characteristic and also creates Chinese speed! However, the overall product maturity is concerning; it may be the first market in the lighting field to become oversaturated, similar to the initial phase of LED guardrail lights. Is the bubble already quite severe? Although it appears very prosperous and lively, it can be foreseen that after government funding, ultimately, in 2-3 years, a batch of excellent LED optoelectronic technology companies will be cultivated. This might be the ultimate goal of the government.
Which market is more worth investing in? Lamp cups are one of the first fields in LED lighting. They have always been mainly constrained by immature product solutions, making large-scale application difficult. From previous die-casting to now using aluminum extrusion profiles, truly effective heat dissipation and power supply products have not yet been seen. That is, there is still no product solution that can be commercialized. Although the cost of LEDs themselves has dropped significantly, the market has not seen significant improvement. Recently, there have been reports from abroad that Toshiba has launched some products that can effectively solve the problems of lamp cup heat dissipation and power supply. If this is true, I think the lamp cup market should follow T8-LED and rise quickly. It is also one of the first fields in LED with the potential to grow significantly.
From an international perspective, the first promoted fields are currently items 2 and 3, while even foreigners are cautious about the LED street light sector. Therefore, I believe that blindly pursuing LED street lights could make business owners "revolutionary pioneers," while the other two markets may cultivate many "leading" forces in the industry.
The commercial promotion of T8-LED is about to begin. Similar to T8 tubes in LED applications, from the current market product solutions, there are products close to commercialization available. I believe this is the first market that can maturely promote. Currently, it can be used in parking lots, shopping malls, advertising backlighting, etc.; and based on the current product costs and selling prices, it is basically approaching the tipping point for commercial application.
Good products have relatively mature solutions in optics, heat dissipation, and power handling. The products are closest to commercialization. Of course, there are still a large number of low-quality products in the current market. This is the biggest challenge. With the introduction of the U.S. Energy Star and EU related standards, I believe the above issues will improve significantly, meaning the commercial promotion of T8-LED will begin. Currently, Walmart has started replacing traditional fluorescent tubes globally with T8-LEDs, indicating that the hope for this细分 market is not far off.
This article, "Analysis: Entry Points for Investment in the LED Lighting Fixture Market," comes from the official website of Lianchengfa Group and welcomes reprinting.
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