China LED market covers a variety of applications, including LED display, traffic lights, car lights, LCD backlight, mobile phone keyboard, digital camera flash, decorative lighting, street lighting and general lighting.
Under the support of the government and new applications, China's LED market in 2011 will grow from 23 billion US dollars last year to 5.8 billion US dollars, up 23%. As more widely used in LCD TV and street lighting, LED has become a popular product made in China, and is very attractive investment areas. In addition, the government's support for the industry seems to be producing results. China's LED market is expected to reach 6.9 billion US dollars next year, reaching 11.1 billion US dollars by 2015, 2010-2015 compound annual growth rate of 17.7%.
Street lights will be the largest application area, this year will reach 1.5 billion US dollars, is expected to reach 1.8 billion in 2012. As the large-size LCD TV and notebook computers using LED, LCD backlight market will also usher in strong growth in 2015 sales from $ 713 million this year to $ 1.8 billion.
Although LED is currently booming in China, but compared with the United States and Taiwan, China's LED industry is still in its infancy. China is lagging behind in this area, due to backward technology and lack of experienced managers and R & D engineers. In addition, China in the LED wafers and other core areas and the lack of intellectual property rights upstream, but also a serious problem.
However, China's LED manufacturers from the local and central government to obtain sufficient funds, which will help domestic enterprises to occupy most of China's LED market. So far, the local government for manufacturers to buy MOCVD equipment to provide at least 70% of the subsidies, equivalent to subsidies for each machine about 1.5 million US dollars. In addition, the government also provides tax and water concessions to encourage enterprises to invest in the domestic LED industry, which for local enterprises is also very attractive.
In the medium to long term, driving LED industry growth will be a new factor in the general lighting market. In view of the global trend of reducing carbon emissions, the demand for LED in China's general lighting sector will be very strong. LED low power consumption, and environmental protection. IHSiSuppli company's data show that LED lighting in the field of general lighting this year will account for 15.5% of the overall LED market.