For the complete report, get in touch with us at : info@netscribes.com "LED market in China is expected to see huge growth in the future. Rising demand for environment friendly lighting source supported by economic development along with major development in technology will boost the demand for LED in China. The report begins with an overview to the LED industry in China covering the market size and growth. It then discusses the various segments in which LED is widely being used with region-wise as well as usage-wise market segmentation. It includes information about the cost breakdown of the LED lights. The major characteristics, the value chain and processes have also been covered. The EXIM market has been covered including total exports and imports with segmented share by country. An analysis of drivers and challenges explains the factors leading to the growth of the market and include localization of chip manufacturing, growing demand among consumer goods, huge foreign investments, banning of incandescent lamps, longer life span, low energy consumption, and environment friendly. The key challenges identified are overcapacity and technology issue, and high initial cost. The government policies have been highlighted and include the 10 villages 10,000 lights program, 1000 village solar LED lighting plan, support programs of the central government and local government to promote LED lighting in China. It includes the initiatives being taken by the government of China which is looking to restructure the market, introduce various lighting programs and offer subsidies to the manufacturers and end users. The competition section provides subscription a brief profile of the major players which includes a snapshot of their corporation and financial performance, providing an insight into the existing competitive scenario."

1. LED Market – China
June 2011

2. Executive Summary
 LED lighting market is expected to grow from USD XX bn in 20‐‐ to USD YY bn in 20‐‐ at a CAGR of
Market ZZ%
Overview  LED market in China is very fragmented with more than XX players operating in the market
 The government is restructuring the LED market with a plan to develop the LED industry by 20‐‐
LE
 XX cities YY lights program launched by the government to replace the P street lights of major
Initiatives cities with LED lighting
MP
 XX‐village solar LED lighting program launched by Institution 1 and Institution 2
 Government is also offering subsidies to the end users and manufacturers
Export &
Import
S A
 Around XX% of LED products are exported to Hong Kong
 More than half of the imports are from Country 1 and Country 2
Drivers: Challenges:
– Localization of chip manufacturing – Overcapacity and technology issues
– Huge foreign investments – High initial cost of LED
Drivers & – Banning of incandescent lamps
Challenges – Longer life span
– Low energy consumption
– Environment friendly
Domestic Players Foreign Players
Competition Company Company Company Company Company Company
A B C D E F
LED MARKET IN CHINA 2011.PPT 2

3. •Market Overview
•Export & Import
•Drivers & Challenges
•Initiatives
•Competition
LED MARKET IN CHINA 2011.PPT 3

4. LED market has seen strong growth and is expected to
develop rapidly in the future
Overview – LED market (1/2) Market Size and Growth
• LED are light emitting components made of semi‐ USD bn
conductor material 100
 They are also referred to as Solid State Lighting (SSL)
• LED lighting industry has seen strong growth and is a%
expected to develop further 50 Z
 It is expected to take a big leap from 20‐‐ to 20‐‐
 Lighting accounts for m% of the total electricity X Y
consumption in China
0
• LED market is extremely fragmented
LE
 Association 1 has more than F registered members
20‐‐ 20‐‐ 20‐‐e
P
• Government has made plans to restructure the LED Market Segmentation (by Region)
industry
20‐‐
SAM
 Government is planning to ban the production of Q from
– This has led to a rapid growth in production and demand for LED
lamps
• More than e% of LED chips being used are imported
e%
d%
f%
b%
Region 1
Region 2
Region 3
Region 4
 LED chips account for i% of the cost of LED lights Region 5
 Localization of the LED chips will help in lowering the J for
LED lights
c%
Source:
LED MARKET IN CHINA 2011.PPT 4

5. LED chips account for more than half the cost of LED lights
that are manufactured
Overview – LED market (2/2) Cost Breakdown of LED Lamps
• LED lights are being preferred compared to Component 1
traditional lighting sources d% Component 2
c%
 LED is environment friendly as it does not have mercury Component 3
 Has a longer operating life span (S hours on an average) Component 4
 Consumes l‐m% lesser electricity than Product 1
a%
b%
LE
MP
Segmentation of Players (by Product) Market Segmentation (by Usage)
A
3,000 S Usage 1
2,000
1,000
0
S P
Product A
Q
Product B
R
Product C Product D h%
i%
j%
e%
Usage 2
Usage 3
Usage 4
Usage 5
Usage 6
g%
f%
Source:
LED MARKET IN CHINA 2011.PPT 5

6. Drivers and Challenges – Summary
Drivers
Localization of chip manufacturing
Growing demand among consumer
goods
Huge Foreign Investments
Challenges
Banning of Incandescent lamps Overcapacity and technology issues
Longer Life span High initial cost of LED
Low energy consumption
Environment friendly
LED MARKET IN CHINA 2011.PPT 6

7. Initiatives – Summary
Subsidies Restructuring of LED industry
Key
Initiatives
1000‐village solar LED lighting
10 cities 10,000 lights program
program
LED MARKET IN CHINA 2011.PPT 7

8. Domestic Players in the Market (1/9)
Company Snapshot: Company 1
Corporate Information Financial Performance
Revenue Revenue Profit
Headquarters City 1
USD mn Profit / Loss USD mn
s
Founded 20‐‐ 80 8
r
60 6
q
Products Product 1, Product 2 and Product 3
40 4
p
20 2
Key People Person 1 – CEO
0 0
2007 2008 2009 2010
Business Highlights
E
• The company provides a full range of lighting solutions, including the design, manufacture, sales and marketing of
L
high‐quality LED and other lighting products for the household, commercial and outdoor lighting industries in China
P
and internationally
• The company markets its products under two broad brands: Brand 1 and Brand 2 (own brand)
S AM
• It issued IPO for T mn shares at a base price of USD R per share
 The amount raised will primarily be utilized for research and development focused on V and further expansion of the facilities for L
manufacturing
Source:
LED MARKET IN CHINA 2011.PPT 8

9. Thank you for the attention
The LED Market ‐ China report is a part of Netscribes’ Manufacturing Industry Series.
For more detailed information or customized research requirements please contact:
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Phone: +91 33 4064 6214
E‐Mail: gaurav.kumar@netscribes.com
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LED MARKET IN CHINA 2011.PPT 9