Fierce price competitions force more and more LED lighting players to move to higher value-added business

Earlier in the year 2019, we learned that two more famous LED lighting players are selling their LED lighting business. The US-based LED producer Cree announced the selling of its lighting business to Ideal Industries on March 15,2019 and power company Eaton made its plan to cut off the lighting business.

Restructuring business aim to focus on higher margin operation has been a trend in the LED lights industry. The price and profit of LED lighting products have dropped much in the past years with more competitors crowding into the industry to share the market. The China-US trade disputes starting in 2018 makes the situation worse. As a result, despite that LED lighting market penetration continues to grow; led lights players have announced their exits in the LED 
lighting industry.


Hoping to become a professional powerhouse semiconductor company, Cree signed an agreement to sell its Cree Lighting, which includes the LED lighting fixtures, lamps and corporate lighting solutions business for commercial, industrial and consumer applications, to Ideal Industries. Cree will then center Wolfspeed business for positioning itself as a semiconductor leader.

On the other hand, Eaton will reduce its lighting business which will cover Eaton global airport lighting business and Mains lighting. The company spun off the led lighting business as it weakens margin performance. 

Before Cree and Eaton, Osram sold its led lamp business unit LEDVANCE to Chinese company MLS in 2017 and announced further plan to separate the led lights business last year for transforming itself to a high-tech photonic company. Meanwhile, after annoucing the plan to sell the LED lighting business by the end of 2017, GE had signed an agreement with American Industrial Partner (AIP) to sell Current, powered by GE business in November 2018.