NEWS

General LED lights price trend around the world earlier in the year 2018

31-08-2018
The worldwide market volume of LED lights has kept enlarging in the past years with the development of the new LED lighting technology. According to a latest market report, LED lights market scale will reach US$ 33.3 billion in 2019 and LED lighting market penetration rate will come to 63 percent in 2022 from 22 percent in 2017.

 global LED lights price trend
The increasing market trend of LED lights has attracted eyesights of many companies to enter. The progress in LED technology also worked to reduce the producing cost while improving the efficiency and working life time of LED lights. For these reasons, these factors have caused fierce competitions between LED lights manufacturers in China, making a sharp price drop of LED lighting products in the past few years. The falling prices have cut off the little margin of the LED lighting factories.

For example, for prices of street LED bulbs. The data collected during January 2011 to July 2018 shows that the average price of 60w street LED light has dropped from around US$ 45-50 in January 2011 to below US$ 10 by July 2018. The current price for LED lamp is only one fifth compared to the price seven years ago. 
60w street LED street light retail price trend

The profit of producing LED lights has clearly become very narrow for LED lights factories. International LED lights players have modified their operation strategies or reorganized their business. Osram has completed the sale of its branch, LEDVANCE to a Chinese consortium consisting of IDG, MLS and Yiwu and announced to sell its LED lighting business earlier in August, while GE has gradually closed its LED lighting sales in different regions, also, it might sell the lighting business to Chinese buyers.

Chinese LED lights manufacturers, with a previous focus on Chinese market and the advantages of lower manufacturing cost, have built up the capability to enter the international market. However, with the falling price of LED lighting products plus the customs duties imposed on them which will come into effect by August 23 due the current trade war between China and the U.S., the LED lighting manufacturers might face more and more challenges.
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