Small companies cooperate with research institutes to reduce LED costs

Entrepreneurs working in the LED industry all know that the LED home market is an important market for profitability in the future, but they have not been able to overcome this area of ​​home lighting. There are many reasons for this.

First of all, at present, the target market of LED companies is mainly concentrated in the professional markets such as government procurement and hotels, and the profits are high. However, after all, the number is limited and the market is in a situation where there is a lot of shortages.

Second, at present, there are not many domestic LED companies involved in the civilian market, mainly in the field of outdoor lighting and commercial lighting. Relative to LED home lighting, these areas are more likely to make LED companies profitable in terms of price acceptance.

LED lights are not very good, because LED prices and energy-saving lamps, incandescent lights a big gap. For example, a 3W LED lamp is priced at 20 yuan, 7W is 90 yuan, and an energy-saving lamp is only about 10 yuan, and an incandescent bulb is only 1 yuan. In the home area, LED lights are currently "essentially market-free."

The National Development and Reform Commission has officially issued a document saying that "China will basically phase out incandescent lamps after 5 years." According to industry estimates, the market size formed after the elimination of incandescent lamps will be as high as several hundred billion yuan. As the best alternative, the LED lighting industry is expected to quadruple within five years.

Outdoor lighting such as street lights and advertising lights operated by LED companies belong to order-oriented products, and customers generally have individualized demands. Even in the same city, street lights on two streets are different in brightness, color appearance, and appearance.

So, how to enter the vast market of home lighting? First of all, we must understand that one of the important reasons why LED home lighting has not been able to overcome is the expensive lighting. The main reason for the high price of LED is that the cost of the chip is high, and the cost of the LED chip is at least 1/3 or more. However, the price of a 1W LED chip was about $3 two years ago, but it has now fallen below $1. With the drop in chip prices, the problem of excessive LED prices is expected to be resolved in the next five years.

Lower costs can account for market opportunities. So, rely on what to reduce costs? Some experts pointed out that if they are doing their own research and development, they really need a lot of investment, but also can not afford for small businesses. In order to reduce costs, and at the same time make the product have a higher technical content, you can choose to cooperate with scientific research institutions.