Residential LED Lighting Market Will Expand from 2014-2016

DATE:2016-03-08 18:06

The residential LED lighting market will grow at a 30% clip from 2014-2016, according to LEDinside, a subsidiary of the Taiwan-based market intelligence firm TrendForce.

LEDinside has analyzed the 10 key trends affecting the residential LED lighting market. Please find below analyses of five important trends:

Key Trend 1: Price defines the residential lighting market

Price is a decisive factor in the residential lighting market. Indeed, consumer price sensitivity in this market is extremely high. Despite the C/P ratio that lighting products offer, consumers still hesitate to purchase products with the highest absolute price. In the global light bulb market, there have been large-scale price cuts owing to government subsidies for energy-efficient lighting and manufacturers discounting products.

Key Trend 2: 100% coverage of residential lighting applications

Only LED lighting can be used as a comprehensive replacement for fluorescent lighting. Indeed, it can be used throughout the home, including in the living room, dining room, bathroom, kitchen and more. It is available in both cold and warm color temperature varieties, is color tunable and can be dimmed. Additionally, solid-state lighting can be applied in any field of lighting. What’s more, users can become familiar with LED lighting in a relatively short period of time. By contrast, other lighting technologies like HID, CFL and even OLED have more restrictive applications.

Key Trend 3: China is the main LED lighting manufacturing hub; strategic procurement determines cost competitiveness 

China is a manufacturing hub for the world’s leading lighting products, including wafers, PCB, power drivers, thermal dissipation modules and a variety of accessories. For global lighting brands, China has become the one-stop shop for LED OEM. Nevertheless, lighting products made in China are of varying quality, with a large disparity between product prices. That makes sourcing a challenge for manufacturers. Consequently, it is imperative to have an in-depth understanding of each of the main components as well as the technology used in their manufacturing in order to keep costs low while maintaining quality.