Trade Resources Industry Views Highlights and Market Trends of HKLF 2017

Highlights and Market Trends of HKLF 2017

The hustle and bustle of Hong Kong makes this city alive, and the same energy and excitement is clearly felt at the Hong Kong Lighting Fair 2017. Here are some of the highlights and booming trends that LEDinside observed.

LED Filament Bulbs Shine Bright at HKLF 2017

Competition from Chinese brands lowered prices of LED light bulbs in the U.S. and Europe during March, according to the latest report from LEDinside, a division of TrendForce. Compared with February, the global average sales price (ASP) of 40-watt equivalent LED light bulbs dropped 3.6% to US$6.6, while the global ASP of 60-watt equivalent products had a smaller decline of 0.9% and came to US$8.1.

In fact, prices of LED bulbs have been on a downward trend since February. “The releases and promotions of new LED filament light bulbs caused prices to drop noticeably in Europe and the U.S. this February,” said LEDinside analyst Allen Yu.

“LED filament light bulbs have the advantage of using less power to achieve the same levels of luminous flux as conventional LED light bulbs. At the same time, LED filament light bulbs are priced much lower on average than conventional LED light bulbs,” Yu added.

The market’s interest towards LED filament bulbs is still strong, which is noticeable at the fair where this particular type of LED product can be seen almost everywhere. For instance, the largest exhibitor of this year, Hangzhou Sky-Lighting Group (HK) Ltd., showcased a variety of LED filament light bulbs at its booth.

As technology matures, the quality of LED filament bulbs have improved across all manufacturers. Thus, to stand out against a sea of rivals, companies now focus on adding value to their products, and the first thing they can work on is appearances. 

Zhejiang Ledison Optoelectronics, a major LED manufacturer in China, introduced a new series of spiral filament LED bulbs and plant filament at the show. In addition, it also produces filament bulbs with different shapes, colors, and decorative glass patterns.

Ji Quan, Sales Manager at KaiLin (HK) Lighting Co., Ltd., said the two keys to profit are still price and quality. However, he admitted that it has become more and more difficult for companies to stay on top of their game. Manufacturers rely mostly on their regular customers with whom they build close ties over the years.

Currently, most filament bulbs made by Chinese companies are exported to the U.S. and Europe, but some manufacturers are expecting a pick-up in domestic demands.

Seeking Progress While Maintaining Stability

Looking at China’s LED packaging market, some LED suppliers already raised prices for their 0.2-watt and 0.5-watt 2835 products in February, as LEDiniside’s latest statistics show. While market demand stayed fairly robust through March, suppliers also expanded their production capacity during the same period. Therefore, the overall price trend in China’s LED package market was on a steady course without significant fluctuations.

China’s major LED packaging manufacturer MLS was also present at the HKLF. After the Chinese maker acquired LEDVANCE by Osram in March, the two sides now focus on leveraging synergies.

This year, MLS exhibited T5, T8 LED glass-based tubes, as glass is the preferred material used by global giants such as Osram and Philips Lighting. MLS told LEDinside that through LEDVANCE, MLS has gained access to Osram’s patented LED chips and other technologies so the company can combine this benefit with its existing advantage in LED packaging to maintain its competitive edge in the lighting sector.

The company said buyers from the U.S., Europe, Turkey, India and the Middle East have shown strong interests in their products at the fair.

LED Specialty Lighting on the Rise

LED grow lights are also getting a lot of attention at the fair. As global companies like Philips Lighting, Osram and China's Sanan Optoelectronics have all invested heavily in building plant factories, the future of LED horticultural lighting looks ever brighter.

LEDinside forecasts that the scale of the LED horticultural lighting market worldwide will grow rapidly from about US$576 million in 2016 to around US$1.42 billion in 2020.

Even though smarting lighting seems to be an unstoppable trend, with more and more companies venturing into this business, for most people, smart homes or smart cities are still just a concept.

In addition, cyber security has generated great concerns and there is the urgent need to address a complicated set of threats. How to ensure security, reliability and practicality still presents great challenges for companies around the world.

Source: http://www.ledinside.com/showreport/2017/4/hk_lighting_fair_2017_highlights_and_market_trends
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HK Lighting Fair 2017: Highlights and Market Trends
Topics: Lighting