LED lighting terminal market prospects for the next five years

In the global lighting market model, it is estimated that the overall annual growth rate of the overall lighting terminal market will be around 5 in the next five years, and the long-term annual compound growth rate is 3. The terminal market growth forecast is mainly based on the expectations of construction speed, automobile production and so on. The long-term growth rate is expected to be consistent with the GDP growth rate of 3.
According to the global lighting model, it is expected that the annual compound growth rate of LED lighting revenue will reach about 30 in the next six years, and 24 in the next 10 years, driven by factors such as rising penetration rate, increasing consumer awareness, and legislation prohibiting the sale of incandescent lamps. We also expect the traditional incandescent lamp market to grow at a compound annual rate of -5 in the next 10 years.
The global lighting terminal market is broken down into seven segments: office buildings and education, industry, automotive, residential, other indoor, outdoor and architectural. We expect LED market growth to be strong in most sectors as prices continue to fall and consumer awareness increases. The residential sector has the lowest penetration rate today, but this situation will change when legislation prohibits the sale of incandescent lamps and retailers push LED lights. On the other hand, in the outdoor field, LED lighting has provided an attractive price/performance ratio, and its replacement cost is lower than in other fields.
Professional LED
The professional use of LEDs is more attractive from a financial point of view because the energy and maintenance costs in this area are much higher, so the higher price of LEDs can be offset by lowering existing costs. In the analysis of the return period for residential use, we assume that the lights are turned on for 6 hours a day. In the commercial world, usage time can be much longer. If we assume that a light bulb is turned on for 12 hours a day, then the current period may be further shortened to one year. We believe that the current period is short enough, so as consumers' awareness increases, the penetration rate will increase significantly. LEDs can save a lot of energy, so LEDs are even more attractive in the face of rising power costs. In addition, LEDs offer greater flexibility in controlling color and temperature.
Household LED
In the residential market, what is more important to consumers is the upfront cost, not the total cost. In the past, compared to CFL bulbs, the advantages of LED bulbs were not obvious, because the original LED bulbs were much more expensive, which means that the penetration of LED lighting in the residential market is still very low. Looking ahead, we expect LEDs to be more competitive in the next few years than CFLs, as their price/performance ratio is still improving rapidly. We also believe that the upfront cost of LED bulbs (ie retail price) may fall back quickly to match the price of CFL bulbs. Another growth driver for home LEDs is that interior designers/new buildings will be more aggressively adopting LED lighting.
In addition, information about the cost advantages of using LED bulbs will be passed on, and consumers will begin to appreciate the design, controllability and flexibility of LED lights. LED lights have other added value features, such as the ability to change colors to match different atmospheres and occasions.

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