Government control and local faction into new obstacles for LED street lamp market promotion

LED lighting is gradually boosted by technology, efficiency is improved, and unit cost is reduced. The industry believes that it will officially enter the first year of LED lighting next year. In the past, the lighting market was dominated by Europe and the United States. According to research institutions, the scale of the mainland lighting market has officially exceeded last year. In the United States, the "Ten Cities and Ten Thousand Cities" actively promoted by the Chinese government have also expanded to the "50 cities and two million miles" LED streetlights. At the same time, Taiwan's LED industry has stepped up its pace, and it is expected to share huge business opportunities. The external environment has a great impact on the quality of LED street lamps, and the maintenance cost is high. In addition, the Chinese mainland market is involved in political and economic relations. Whether the LED industry can actually eat this piece of cake is still to be observed.

According to the plan of the Ministry of Science and Technology of China, it is expected that the original “Ten Cities and Ten Thousand Miles” LED streetlight demonstration project will be expanded to “Fifty Cities and Two Million Miles” this year, and the LED localization ratio will be increased from 60% to 70%. Due to the regulation of this policy, the Taiwan LED factory, which has set up a factory in the mainland, will have the opportunity to break through and share the market pie of LED streetlight demonstration projects by working together with Chinese manufacturers.

However, although LED street lights are highly anticipated by the market, they are also the policy direction of governments. In fact, it is difficult to cut into this market. Compared with LED indoor lighting, LED street lights are greatly affected by the external weather environment. In terms of after-sales maintenance and repair costs are relatively high, therefore, although the industry is optimistic that next year is the first year of lighting take-off, but the view of the take-off of the street lamp market is relatively conservative, that the mature period must wait.

In addition to the high design and maintenance costs of LED street lights, the industry also revealed that the street lamp market is controlled by the government. To take orders, in addition to participating in government bidding, it may also face local faction forces. Inevitably, the cows and ghosts are a part of the ring, deepening the difficulty of entering the streetlight market. Many companies do not say that the size of the company will be an important factor in whether or not to divide the market. There are also small and medium-sized manufacturers that directly indicate that they will focus on the niche market. Step into the killing battlefield of LED street lights.

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