Turn the clock back in early 2008, global energy prices, with energy-saving advantages of LED to become the star of the mass of the promising industries, there are always new vendors branched out into LED industry. Firms within the industry and the market optimistic about LED lighting and LCD display backlighting market penetration growth, sustainable expansion. Under an optimistic scenario in the market, from the third quarter of 2008 by the global financial tsunami-affected by the market demand instant frozen, in addition to lighting and other emerging market penetration optimistic as expected, the Christmas lights, the small size of display backlight and other existing markets consumer purchasing power due to decline, showing a recession.

Slowdown in demand is difficult to consume the beginning of the expansion of production capacity, causing a huge downward price changes in the overall market sentiment from the boom to recession, but fortunately the first half of market growth, offset in part by the second half of the market downturn caused by negative impact on the global LED market in 2008 compared with 2008, a slight increase of 3%, reaching 6.76 billion U.S. dollars.

Prospects Trends 2009 LED Industry Development

1. Market, negative growth

The impact of the global financial tsunami, a significant drop in consumer spending, delay or reduce the associated electronics purchases. Enterprises to reduce advertising expenditures and capital expenditures, which will make LED market demand decline. With Christmas lights, for example, Europe and the United States market is always in the past year to purchase a new string of lights, creating billions of dollars each year around Christmas business, but the 2008 Asian financial crisis, consumers re-use of products purchased in 2007 or reduce the purchase amount, making the 2008 Christmas lights the market shrunk dramatically and the market situation is expected in 2009 will continue. Although the negative impact of such a huge, but because LED lighting market, LCD backlight market saturation is quite low. Possess and the LED energy-saving, multi-color, long life and other features are conducive to create a new selling point products, which will allow system vendors a more active use of LED, in order to attract consumers to look further spending. In these emerging markets, driven by the global economic recession will reduce the negative impact is estimated that in 2009 the global LED market reached 6.7 billion U.S. dollars, compared with 1 percent decline slightly in 2008.

2. Government investment to drive market demand

In order to save the global economic climate, governments continue to expand public construction investment, hoping to drive economic growth. The various types of public construction investment, including lights, urban landscape lighting, indoor and outdoor lighting public buildings fliers about the focus of national government investment, such as China's 10 City, 10000 Plan (click to see more information on 10000 10 cities), United States LED City program, the U.S. Department of Defense at the Pentagon, to install LED lighting, etc., such plans will become the lead through the LED industry, the key to one of the economic winter. Among the many public works market, currently the focus for the development of LED lights for two main reasons 1.LED street prices have fallen sharply, making LED lights set the investment recovery period is shortened, 2. Lights for outdoor lighting, people can actually feel the LED lights effect, 3.LED lamp technology is relatively mature, and has therefore become all Governments to promote LED lighting when the main driving the project.

3. Product price continued to decline

On the external environmental analysis, LED light sources need to narrow the price gap with the competition, to expand the application market and market penetration. And the 2008 outbreak of the financial tsunami, caused by sluggish growth in market demand in 2009, leading to more intense competition in the market price. On the internal environmental analysis, with the help upgrade production technology and process equipment upgrade, LED production costs continued to decline. Changes in the environment both inside and outside the unit continues to decline driven LED products, LED products in 2008 driven by price decline in the above-mentioned factors, will continue to affect the industry, making LED products price continues to decline.

4. Lighting market will continue to grow

The recent drop in energy prices, making LED, solar power and other energy conservation or alternative sources of energy demand slowed, but is limited in energy demand under the premise of infinite future, the prospect of such energy industry is still very bullish. For the LED industry, the lighting market is the largest potential market, and with the LED luminous efficiency gains, as well as government subsidies or incentives, there are more and more applications Field LED to replace traditional light sources used. Expected future LED lighting market will be "by the public and private, after the pre-Shang China, from small and large, from the point of the surface" of the track development. Forecasts in 2009 with the LED lighting market will reach 630 million U.S. dollars, compared with 2008 growth of 35%.

5. The standard gradually formed to accelerate the market applications

The continuous expansion of LED applications, as well as the structure of LED light source, light-emitting principle and light-emitting characteristics and different from conventional light sources, LED standard-setting increasingly valued by the market, governments and industry associations actively involved in the development of this area, of which the United States of the fastest growing. U.S. Department of Energy (DOE) released in September 2007 Energy Star (Energy Star) solid-state lighting standards, according to specification lamp luminous efficiency is divided into two phases, the first stage of a maximum luminous efficiency required to achieve 35 lm / W; No. 2 phase to reach 70 lm / W level, which refers to live in the commercial lighting fixtures General lighting, such as kitchen cabinet lights, table lamps, inlay lights, outdoor path lights, outdoor wall wash lights. In addition, DOE is expected in July 2009 through the LED product standards "Energy Star Criteria for integral LED lamps", for the use of LED as the light source lamp to do more specific norms, but also on the LED Replace Market for more clearly defined LED efficiency must be equal to or higher than the 25W incandescent lamp and so on. So, as an increasingly integrated LED lighting standard cases, manufacturers gradually have to follow the standards will accelerate the LED lighting market to enter.