Ban on incandescent lamps creates immense business potential

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2010-03-22 14:43

Taiwan--(뉴스와이어)--Governments around the world began to commit in promoting energy-saving policies, and the cost of LED lighting began to fall; these factors help to stimulate the growth of the energy-saving market. Research institute LEDinside indicated that with the ban on incandescent bulbs, business opportunities of 10W and below LED light bulbs began to emerge, and that light makers have cut prices in order to compete in the market that supplies nearly 20 billion units of incandescent bulbs per year.

Take a 7W LED light bulb for instance, a 7W LED bulb cost nearly $15~20 in early 2009, and LED accounted for about 60% of the cost of the bulb. As the cost of LED dropped, a 7W LED bulb currently costs 10 USD, and LED accounts for 40% of the cost of the bulb. With the cost decline of the LED light bulb, the retail price between incandescent and fluorescent light bulb narrowed from 15 times to 10 times.

In addition, as governments around the world are facing the soaring energy prices, various policies to reduce energy consumption have been implemented as a counter measure. The first initiative is to ban the use of high energy-consumption incandescent light bulbs. Based on the timetable of each country planning to ban the use of incandescent bulbs, LEDinside indicated that most countries have set 2012 as the deadline of banning incandescent light bulbs, which also marks the rise of LED lighting.

A case in point – Japanese government signed the Kyoto Protocol in 1997, targeting to reduce Japan’s greenhouse gas emission by 300 million tons. If the existing lighting products are replaced by energy-saving lamps, Japan is expected to cut 3.4 million tons of carbon dioxide emissions. Recently, Japanese government implemented a series of subsidy policies in a bid to meet the commitment it made in the Kyoto Protocol; for example, the government will grant subsidies to business users who adopt energy-efficient LED lamps. With 2012 approaching, demand from LED bulbs replacing incandescent bulbs will boom.

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