LED Lighting Market: Bright Outlook for LED Wholesalers

Posted by in LED Wholesale, LED Investments, LED Manufacturing on March 02, 2013 . 3 Comments.

Global Market Demand Forecasted for Rapid Growth

Bright Outlook & Rapid Growth in LED Wholesale Market Demand

As you may already know, massive cost-reductions in packaging and optimization of the LED manufacturing processes are about to significantly improve LED wholesale prices and help LED lighting gain a wide market acceptance in the next years and a strong boost in global industry sales turnover are expected.

Because price reductions benefit the entire supply chain from original manufacturers through wholesale distributors and up to the commercial end-consumer with immediate effect, market forecasts state fast paced growth for the LED industry as market prognosis and demand forecasts are very optimistic on upstream LED lighting wholesalers and manufacturers who are seen as winners of this new and game-changing technology.

Global LED Lighting Market’s Future: It's Bright & Fast Growing
 
Recently the LED lighting industry in general has received excellent news recently regarding the positive predictions for the LED industry in the future. LED lighting technology is becoming more widespread, more popular and more affordable day by day. Because of LED lights’ energy-saving, sustainable properties, LED lighting is known to light the way of the future and recent developments in the stock market have given this notion even more optimistic value and added also lots of media attention.
 
The LED illumination market value has been reported to jump to U$100 billion in annual sales within the next decade, increasing drastically from its current state of about US$ 15 billion per year.

Positive leverage in form or cost-savings throughout the entire supply chain will directly boost market demand and benefit both end-consumers as well as upstream LED distributors and the LED lighting wholesale suppliers. Because of to the predicted decrease in LED prices in the next few years, it is safe to assume that there's room for many players in the LED lighting industry to benefit from fast growing sales figures and rapid market growth that is directly translated upstream into more orders and more sales.

The future looks even brighter as LED manufacturer Cree's shares jumped 22% on Jan. 23 after just having announced its fiscal Q2 results that where exceeding Wall Street expectations and has set a clear sign also for investors that global LED lighting markets are about to take over completely and outshine conventional lighting in fast pace, being a true game-changing factor and technological breakthrough with amazing benefits that is taking over the global lighting markets by storm.
 
LED Lighting Market Expansion to Happen Much Faster than Predicted
 
Global Market Forecasts for LED Lighting are BrightHow would you like to increase your investment tenfold within the next five years? If so, the advice to you is simply this:

Buy yourself some LED light bulbs wholesale. With LED light bulbs lasting up to 30 times longer than incandescent bulbs, the few dollars you invest at the purchase will turn out to be your potentially most valuable investment after a very short time.
 
In the past, however, many consumers still saw the initial entry investment as a hurdle to benefit from the gains of LED:

Turns out, purchasing LED lights for private or public spaces is one of the best cost-efficient and energy-conserving investments that you can make today, and every single LED light bulbs that you are using will give you an amazing ROI and start earning you real cash after a few years only.
 
This initial hesitance by consumers in the past is dying out. Today, LED lighting technology is booming with popularity and attention as it takes over not only the light bulb and illumination markets but is also dominating most of today's smart phone, laptop and television screens and delivers amazing results.
 
Experts expect a bright future ahead for LED technology, as a natural consequence of the 17% rise in LED-related profit since 2011. Due to this very optimistic number, the Taiwan LED Lighting Industry Alliance estimates the LED market value to rise by one third of its current profits by 2020.
 
The LED trend and complete domination of the lighting market is expected to happen much faster than initially predicted, states environmental expert of Green Science Partners, a US investment company. This is primarily due to decreasing costs, stricter regulations and overall more positive consumer attitudes.
 
Public lighting is in the center of the prediction of the next few years of LED lighting. The retrofitting of entire apartment buildings, office towers, airports and highways will need to a complete takeover of LED in public spaces, leading the LED revolution to new levels of success. The snowball effect that has begun with LED investments worldwide is happening on a daily basis and has become irreversible and is now headed toward one direction and one direction only - a very bright future.
 
LED Light Market to Ignite in 2013: Signaled by Increase in Cree’s Stocks
 
Although Cree has suffered until deep into 2012 due to a lower demand than supply of LED lights, the situation has changed substantially since the start of 2013. Record-breaking increase of 37% in profit and a predicted 60% further increase in the second quarter of the year light the way for Cree stocks with an increase of 45%.
 
Along with Cree’s positive start to 2013, several other LED lighting related stocks such as those of Aixtron, producing organic LED lights, increased by a proud 20%, too.
 
According to a study done by the management consultants at McKinsey, the LED presence in the public will be at a proud 45% by the year 2016. By 2020, they predict an entire 70% of public lighting to be LED. In comparison to these predictions, note that in 2011, only about one out of eight bulbs was an LED light bulb.

From 2010 to 2020 market indicators show that the compound annual growth rate for the global LED lighting industry is predicted to be 32%, with total market value of 55 billion Euros or US$ 72.57 billion in 2020.

In terms of energy conservation, consultants at PricewaterhouseCoopers expect a U$53 billion decrease in US energy costs. What does this mean for the consumer?
 
LED lighting technology is taking over the worldwide market as stocks increase in value and public spaces are retrofitted with LED light bulbs. With the LED industry holding a worth of about 9 million Euros in 2011, it is predicted to conquer up to 37 million Euros in 2016 and be valued at an incredible 64 million Euros by 2016.

Clearly, the LED market is growing at an incredible speed and by 2020, will be worth about seven times more than two years ago. But what does this mean for the consumer?

The main benefit for the consumer will be lower prices and even better ROI:  

LED lights will cost only about 1/5 of the price of LED bulbs in 2010 by 2015, according to McKinsey.
 
Affordable and eco-friendly digital illumination technologies by LED lighting wholesale distributors such as LEDLuxor are continuously working on how to reduce wholesale prices and thereby also increasing their sales turnover. Driven by the fast growing market demand by end-consumers and because of cost-savings regarding LED packaging and further optimization of manufacturing processes, prices changes will directly manifest themselves by further increasing market demands.

Expecting also many new and exciting technology solutions, LED lighting products and innovations within the next years, the near future of the LED illumination industry is simply said just bigger, better and brighter.

Feel free to contact our experienced sales team today for a wholesale LED quotation!

Tags: LED Wholesale, LED Manufacturing, LED Industry Last update: May 03, 2013

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