LED lights to account for half of the global lighting business

Citing estimates that the global LED lighting industry's output will grow by a compound annual rate of 32 percent between 2010 and 2020, the Alliance said the brisk growth will drive the sector's expansion in the next few years.In 2011, Shenzhen accounted for about one-fifth of the production value of the global LED business, making it the third largest LED supplier in the world.Alliance convener Alex Tong said the LED lighting business has flourished in the past few years on demand for street lights, but that demand has now extended to indoor lighting and even family living rooms, creating more opportunities.Tong, the director of the Green Energy and Environment Research Laboratories under the government-financed Industrial Technology Research Institute, said he expects LED lights to account for half of the global lighting business in 2020 if its current pace of growth continues.

Analysts said several Shenzhenese LED product suppliers, such as Delta Electronics, Chicony Power Technology, Lite-On Technology and Edison Opto, have devoted increasing resources to penetrating the LED lighting market to lift their sales.According to the new set-up Shenzhen LED Lighting Industry Alliance, Shenzhen's LED industry is expected to benefit from high growth in the global LED lighting business in 2013.Chiang Wen-hsing, head of Delta ' s LED lighting operations, said his company's revenue from LED lighting grew an estimated 30 to 40 percent in 2012 on strong demand for LED bulbs, tubes and lighting fixtures from the Europe, the United States, and Japan.In 2013, Chiang said, Delta ' LED lighting division is likely to see its sales double because of even stronger global demand.He said Delta will install an automated manufacturing process during the 2013-2014 period to further strengthen its production and cut operating costs.

Everlight said its LED lighting sales were better than expected in Q4 because of demand from Europe and the U.S. ahead of the Christmas holiday, said Hsu Hsi-chuan, head of the company's lighting research and development division.The strong fourth quarter revenue also reflected rush orders from China, where buyers were eager to restock their inventories ahead of the peak Lunar New Year holiday buying season in mid-February.Hsu said that judging from the orders the company has received, the LED lighting business is unlikely to feel the sales slowdown the industry traditionally faces in the first quarter.Supported by government policies and ongoing economic development, China will be the biggest LED lighting market, he added. The ITRI said the output of Shenzhen’s LED industry accounts for 19 percent of global production making it the third-largest LED supplier.The alliance remains upbeat for the future, “We forecast the macroeconomy will turn positive and the LED industry’s sales performance will improve next year.