Opportunity Analysis of China's LED Lighting Power Market Development

2016 global LED lighting power supply market is expected to reach 10 billion US dollars

Due to legislative reasons and rising power costs, the LED lighting market is rapidly developing. Under this impetus, the global power supply demand in 2016 is expected to reach 4 billion, that is, 10 billion US dollars. Ryan Sanderson, a senior market analyst and one of the authors of the report, stated that the demand for LED lighting solutions is increasing from low-power residential lighting LED lamps to high-power commercial and industrial LED lamps.

The traditional lighting market has long been entrenched, and now it is necessary to provide power devices for LED lights. LED manufacturers face new challenges and need stronger power device expertise, which creates opportunities for power supply manufacturers. The requirements for LED lighting power supply mainly depend on design factors such as the rated power, the number of LED and LED light strings, and the use environment. Sanderson said that these design requirements coupled with the lack of LED lighting standards mean that LED lamp manufacturers need powerful power device expertise and can hire industry experts or work with professional power supply vendors.

In 2016, more than 50% of the LED power supply market will be dominated by power supply manufacturers

LED lighting will be the only opportunity for the power industry, although general lighting has been a relatively small, low-growth market for the power supply industry. However, the competition in the lighting industry has become fierce. Some large LED lamp manufacturers are trying to meet these challenges. According to Jonathon Eykyn, one of the authors and market analysts of the report, some large LED lamp manufacturers have been able to design and manufacture power circuits through subsidiaries or purchasing power suppliers. Philips Advance is a typical example. These vertically integrated companies have carved out part of the opportunity for the entire power market. However, the internal design and manufacture of power supply devices is only feasible in high-volume, low-cost markets. In large- and medium-power applications, the design process is more complex. In this case, it is more cost-effective to outsource power supply design to professional power supply manufacturers. Therefore, IMS Research's report predicts that more than 50% of the LED power market in 2016 will be dominated by power supply manufacturers.

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