May 15, 2011. The LED lighting industry is still highly fragmented with many start-up competitors. As the technology matures, industry consolidation will occur, and there will be a flight to quality and to established brands.

Multinational and local LED lighting manufacturers such as Philips, Osram, Toshiba, Kingsoft and Neo-Neon are among the many strong contenders for their domestic and overseas market dominance, and new competitive industries are constantly emerging from local and global related players.

Although China is the largest market in Asia, the current market penetration rate is still very low, and the future growth potential is still great.

China has many incentive programs for LED lightingmanufacturers. These include the 863 Project and “Ten Cities and Thousands of Lights”. The use of older non-energy-saving lamp technologies is discouraged, and the use of incandescent lamps is planned to be phased out after 2018.

Local companies in the entire LED lighting value chain compete fiercely in the huge Chinese market, with more than 1,000 LED lighting suppliers and more than 1,000 upstream LED chip and packaging companies.