Fierce competition among major LED lightbulb suppliers in South Korea has resulted in a decline in the ASP of LED lightbulbs. The ASP of a 40 W LED lightbulb dropped to US$10 and a 60 W LED lightbulb fell to US$20 in 2012. Currently, many LED vendors in South Korea are actively participating in the price war and are offering
40 W and 60 W replacement LED lightbulbs at significantly lower prices. This has made LED lightbulbs affordable to consumers, resulting in their increased adoption.
Several factors drive the growth of the LED market in South Korea, a major one being the need for energy-efficient lighting solutions. Global warming and escalating energy costs have compelled both the government and consumers to reduce the consumption of energy and associated environmental impacts arising from carbon emissions in South Korea. Hence, the government, in an effort to conserve energy and reduce costs, is increasingly promoting the adoption of energy-efficient lighting products.
One of the major challenges is the high installation cost of LEDs. The manufacturing process of LEDs incurs high upfront costs such as the installation of MOCVD equipment and the price of raw materials such as compound semiconductors and substrates.
Analysts forecast the LED market in South Korea will grow at a CAGR of 21.53 percent over the period 2013-2018.
The following companies are recognised as key players operating in the LED Market in South Korea: Cree Inc., LG Innotek Co. Ltd., Nichia Corp., Osram Opto Semiconductors GmbH, Philips LumiLeds Lighting Co. LLC, Samsung LED Co. Ltd., Seoul Semiconductor Co. Ltd., Everlight Electronics Co. Ltd., GE Lighting LLC, Lite-On Technology Corp., Toyoda Gosei Co. Ltd., Wooree E&L Co. Ltd.
About LEDs
An LED is a semiconductor light source used for various applications such as general lighting, back lighting, and automotive lighting. LED lighting applications include residential, office, retail, hospitality, industrial, outdoor, architectural, and others. LEDs are gaining acceptance in these applications because of their greater efficiency and low cost. Also, LEDs are able to address some key issues that the world faces today such as the energy crisis, resource scarcity, climate change, safety in and attractiveness of cities, productivity in offices, and an enhanced sense of health and well-being, as lighting consumes approximately 20 percent of all electricity in the world. LED lighting can save on an average up to 40 percent of energy.