Apart from gradually replacing traditional lighting, LED lighting is targeting the high-end market with more value-added products. In addition, commercialization of OLED lighting has also started.
LED lighting prices were four times as expensive as energy-saving light bulbs in 2011 but by the end of 2012, the difference had narrowed to 30%. Therefore, in order to avoid price competition, international firms have been introducing LED lighting products with features such as adjustable brightness and omni-directional.
According to Philips, the lighting revolution involves three stages. The first sees traditional lights replaced by ones with longer lifespan and energy-saving features. The second stage is to introduce integrated LED lighting fixtures instead of adapting LEDs to traditional fixtures. The third stage is to develop new applications, such as ones incroporated into architectural and city designs. Philips believes the current market is at the beginning of the third stage. The aim is to develop new functions to drive growth for the lighting market.
Philips has received the L-Prize award from the US Department of Energy (DOE) for its Queen Star series of LED light bulbs with brightness angle reaching 300 degrees. The product has been introduced to the Taiwan market with retail prices above NT$1,000/unit (US$33.51/unit), which is a few times higher than prices of other LED light bulbs in the market. The firm is also eyeing the smart home market, and has introduced Hue series LED light bulbs that can be operated through mobile devices. A package of bulbs carries a retail price of US$199. Users can download to their mobile devices the specific app for controling the bulbs' brightness and colors. Users can also pre-set lighting schedules. Despite the relatively high price, demand has been strong.
Philips predicts in the next eight years, prices of LED lighting will fall more than 80% and penetration rate will increase to 64%. With the market expa