LED Market Overview and Forecast Europe Wolfgang Gregor ELC Vice-President
TILS Forum Taiwan Taipei, 13 March 2012
Aura Light BLV Dr. Fischer GE Lighting LightTech NARVA OSRAM Philips Havells Sylvania Toshiba Venture Lighting Verbatim
European Lamp Companies Federation (ELC)
12 Member companies
Collectively employs over 50,000 people in Europe
Account for 5 billion € European turnover
www.elcfed.org
Overview 1. 2. 3. 4. 5.
Situation of European LED Market European Market compared to World Market Regulatory Environment Challenges and Opportunities The Need for a Level Playing Field
Situation of EU LED Market • Market in general impacted by phase out of incandescent light bulbs, last phase 2012 • LED are promoted as feasible alternatives for domestic and professional retrofit solutions to increase energy efficiency • A steady and sustainable growth can be forecasted
Projected Turnover in Europe of LED lamps
2,0
1,9
1,8 1,6 1,6 1,4 1,4 1,2 1,0
0,9
0,8
0,7
0,6 0,4
0,3 0,2
0,2
0,1
0,0 2008
2009
2010
2011
2012
Source Mc Kinsey - in bn EURO
2013
2014
2015
European Market compared to World Market Total + LED Luminaires market World & Europe [mio EUR] 60000
50000 Lums Total *
40000 Lums LED *
30000
Lums All Europe *
Lums LED Europe *
20000
10000
0 2008
2010
2012
2014
2016
2018
2020
2022
European Market compared to World Market 20000
Total +LED Lamps market World & Europe [mio EUR]
18000 16000 14000 12000 Lamps All World *
10000
Lamps LED *
8000
Lamps All Europe *
6000
Lamps LED Europe *
4000
2000 0 2008
2010
2012
2014
2016
2018
2020
2022
European Market compared to World Market Observations: • In general similar trends for LED lamp market development • Possibly slower uptake of LED luminaires in Europe than in other regions
Regulatory Environment • Legislation on minimum performance requirements for LED is under preparation and will enter into force in the second half of 2012 • EU Commission prepares a „Green Paper“ on the future of lighting in Europe to accelerate the uptake of LED technology • EU lighting industry launched a project on new voluntary ECOLABEL and Green Public Procurement criteria
Regulatory Environment • Regualtion on performance requirements of LED complements existing ECODESIGN legislation on lighting products • Requirement catalogue extends e.g. also to lifetime requirements and similar functionality requirements. • It is to be expected that this Regulation contributes to better product quality on the EU market
Regulatory Environment • EU Green Paper will propose concrete action to accelerate the uptake of LED in Europe and also to enhance competitiveness of the European industry • From industry perspective it is important to foster biological efficiency, intelligent systems and to raise quality awareness in the different market segments • A number of actions will be launched in 2012 and beyond
Regulatory Environment • ELC has recently launched the ECOLIGHTING project, the first respective stakeholder consortium to revise the criteria catalogue of the European ECOLABEL for lamps and Green Public Procurement criteria • These are voluntary schemes in order to enable purchasers making an informed choice for high quality and best perfoming products
http://www.eco-lighting-project.eu/the-project
Challenges and Opportunities • The poitive implementation of the EU Green Paper can lead to new opportunities for the European LED market, especially if better quality thinking can be really be implemented. • However, the challenge remains to realize the full savings potential of LED
Savings potential in bn EURO when switiching to LED lighting 10,0 9,3 9,0 8,0 7,0 6,0 5,0 4,0 3,0 2,2
2,2
2,0 0,9
1,0 0,0 Haushalte
Büros
Industrie
Öffentliche Beleuchtung
Highest savings potential is in domestic lighting, however this is the consumer group the most difficult to reach Source McKinsey
A level playing field … • The European LED market offers interesting growth opportunities for innovative companies • The European LED market is a mature, though not saturated market • The European LED market has to be characterized by a high level of quality in products and services brought to the market
A level playing field … • European industry will increase their own activities for market surveillance • Low quality products must not and will not destroy the acceptance of LED technology even before a significant market penetration has taken place • Europe is an open LED market, but each player has to observe the rules and comply with Regualtion, only then we will all be successful