With the rapid decline in LED product prices and gradually moving toward a sweet spot, Taiwan’s municipal adjustment units have recently been optimistic about the growth of LED lighting next year, which is expected to bring new growth momentum to the LED industry and Taiwanese manufacturers.

　　 The LED (light-emitting diode) industry has very limited growth space in backlight applications, and even the output value will enter a period of decline. Fortunately, with the rise of new LED lighting applications, as the penetration rate of LED lighting increases, it is expected that the global LED lighting market will enter a cycle of high growth. However, this revolutionary industry is also entering a highly competitive killing field.

　　 In addition to the advantages of manufacturing costs, brands and channels are the real source of competitive advantage in the LED lighting market.

The Taiwan Optoelectronics Technology Industry Association sees the opportunity for European and American countries to eliminate the largest use of 40 to 60 watt incandescent lamps for people’s livelihood from 2014. Some American companies, such as General Electric, which are slower to switch from traditional lighting to LED lighting, As well as regional brands and foundries in mainland China, which are important global lighting production centers, they have pushed up the penetration rate of global LED lighting products. Taiwanese manufacturers, regardless of whether they are using their own brands or OEMs, should step up their deployment to seize this wave of business opportunities.

　　 According to the report of the research institute LEDinside, it is estimated that the output value of LED lighting will reach 17.8 billion U.S. dollars in 2014, and the overall shipment of LED lighting products will reach 1.32 billion, an increase of 68% from this year (2013). In terms of regions, the growth rate of LED lighting products consumption in mainland China next year will reach 86%.

　　 Among them, alternative light source products are the most obvious. Bulbs and tubes are the most popular alternative light sources in the market, accounting for 38% and 25% of LED lighting products in 2013. The demand for integrated LED lighting products will gradually rise in the future, especially products that combine smart lighting applications.

The Optoelectronics Technology Industry Association pointed out that the global LED lighting output value reached 11.5 billion US dollars in 2012, and the penetration rate in the lighting market was about 11%. The top ten LED lighting manufacturers were Philips, OSRAM, Panasonic, Toshiba, Cree, ENDO, Zumtobel, Koizumi, Iris Ohyama, Sharp, etc. Taiwanese manufacturers still need to increase their market share.

　　 Fubon Securities expects that the global LED lighting market growth rate in 2014 will be higher than that in 2013, with a growth rate of about 43.5%, reaching $17.8 billion.

IEK (Taiwan Institute of Industrial Technology) estimates that the LED lighting market will reach 39.2 billion U.S. dollars in 2014, with a market penetration rate of 34%. The market will show five major trends, namely the rise of flat panel lights, continued decline in product prices, automated production lines, Government policy promotion, intelligent lighting system integration, etc.