the current commercial market perspective

China’s National Development and Reform Commission (NDRC) recently published a notification to “increase efforts to fulfill 2013 carbon emission reduction target,” according to a report by Guangming Daily. The notice revealed NDRC, Ministry of Finance (MOF) and Ministry of Housing and Urban-Rural Development (MOHURD) will be responsible for promoting the green lighting engineer project and implementing LED energy-saving industry plans. The government agencies will also be responsible for the continual implementation of energy-saving subsidiary projects to promote 130 million highly efficient lighting products sets, according to the announcement. From now on, green lighting fiscal subsidies will shift from fluorescent lights to highly efficient LED lighting products.

Industry statistics showed a bursting China’s 2013 LED commercial lighting market, with 1H13 total LED street light biddings over RMB 20 billion (US$ 3.27 billion). Some Chinese provinces and cities accumulated bid value at the moment has surpassed the annual amount for 2012. In addition, international LED companies have large scale cooperation projects with Chinese LED companies and has overall raised China’s LED technology level. It is estimated as LED technology gradually matures product prices are continually lowered, and has increased promotion channels. Commercial lighting that includes LED street lights will be entering a new wave of fast growth.


From the current commercial market perspective, LED products have continued to replace conventional lighting products. In comparison, LED lighting products have the advantages of longer lifetime; higher light efficiency; conserves more energy; is more environmental friendly; flicker-free; emits no radiation; and uses low power. LED’s biggest flaw of high prices is also gradually being solved by technological advancements. Those in the industry explained pricing has been the main reason that LED products have not been applied on a large scale for commercial lighting. All these have led to NDRC’s promotional notification of gearing up on carbon emission reduction. This policy in turn can actively stimulate and promote the LED industry. Those in the industry believe the general trend will be the emergence of large scale LEDs entering the commercial lighting field. On the basis of environmental friendly and energy saving features, whether manufacturers can quickly undergo industrial upgrade and promote lighting with high P/P ratio will be a key element to their success or failure in the lighting market.