With the increasing emphasis on environmental issues, the demand for LED lighting gradually rise, compared with the demand caused by the replacement of home lighting consumers independently conducted, the demand caused by the government-led street light replacement is more clear, but the cross-strait LED manufacturers target the street lamps cases in mainland of China, who has ignored the fact that the opportunities to replace the traditional street lights with LED lamps has began to take shape in Europe and America.
Currently, the penetration rate of LED lights in U.S. is about 6%, which is expected to increase to 10% in this year; although Europe is limited by its poor economic conditions, once the economy improves, the huge replacement opportunities also will ensue.
Compared with Taiwan and mainland of China, in fact, the electric charge is higher in Europe and America, while under the environment with higher electric charge, both the Government and the people prefer power-saving products, especially in the United States, the public electricity costs is higher, so the local governments will actively carry out plans to replace the traditional street lights. With less barriers from governments, the development speed of street lights replacement in U.S. market is more rapid than that in Taiwan and China.
In addition to the U.S. market, the industry is also optimistic about the development of the European lamp replacement market, the European government is limited by the current poor economic conditions, the real opportunities to replace street lights has not come, now it is the good chance for manufacturers to prepare in advance, once the European economy recovered, the huge business opportunity will ensue, and then Chinese mainland is not the unique market for Taiwan LED manufacturers to compete any longer.
