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The Market for Light Emitting Diodes (LED) in Germany

Market Brief

Project Report 2010 28 Pages

Business economics - Offline Marketing and Online Marketing

Excerpt

Table of contents

LIST OF ILLUSTRATIONS

LIST OF TABLES

ANNEXES

LIST OF ABBREVIATIONS

EXECUTIVE SUMMARY

A PRODUCT DESCRIPTION

B PRODUCTION, FOREIGN TRADE AND CONSUMPTION

C MARKET CHARACTERISTICS

D MARKET ACCESS

E PRICES

F DISTRIBUTION CHANNELS

G COMMERCIAL PRACTICES

H QUALITY AND GRADING

J PACKAGING AND LABELLING

K TRADE PROMOTION

L MARKET PROSPECTS

ANNEXES

List of illustrations

ILLUSTRATION 1: INSIDE A LIGHT EMITTING DIODE (LED)

List of tables

TABLE 1: PRODUCTION OF LIGHT EMITTING DIODES IN GERMANY
TABLE 1.1: QUANTITY OF DOMESTIC PRODUCTION OF LEDS
TABLE 1.2: AVERAGE PRICE PER LED OF DOMESTIC PRODUCTION

TABLE 2: EXPORT QUANTITIES AND VALUES (IN € THOUSAND) OF LIGHT EMITTING DIODES INCL. LASER DIODES

TABLE 3: IMPORT QUANTITIES AND VALUES (IN € THOUSAND) OF LIGHT EMITTING DIODES INCL. LASER DIODES

TABLE 3.1: COMPARISON OF QUANTITIES (TONS) OF DOMESTIC IMPORT AND EXPORT

TABLE 3.2: COMPARISON OF PRICE (€) OF DOMESTIC IMPORT AND EXPORT

TABLE 4: IMPORT SHARES IN TONS FOR INDIVIDUAL EXPORTING COUNTRIES (FOR 2009)

TABLE 5: IMPORT SHARES IN EURO FOR INDIVIDUAL EXPORTING COUNTRIES (FOR 2009)

TABLE 6: IMPORT PRICES IN € PER TON FOR INDIVIDUAL EXPORTING COUNTRIES (FOR 2009)

TABLE 7: MAIN PRODUCERS OF LEDS IN GERMANY

TABLE 8: KEY STANDARDS - SAFETY AND PERFORMANCE

TABLE 9: OVERVIEW OF SYSTEMS COMPOSED OF LED MODULES AND CONTROL GEAR

Annexes

ANNEX 1: SELECTED POTENTIAL IMPORTERS

ANNEX 2: OTHER USEFUL ADDRESSES

ANNEX 3: SELECTED PERIODICALS

ANNEX 4: SOURCES OF INFORMATION

List of abbreviations

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Executive Summary

Germany is a net importer of Light-emitting diodes, including laser diodes as classified by the following 8 digit HS code 8541.40-10. Over the last five years Germany has seen domestic production decrease while imports of LEDs are steadily increasing to around 1766.9 tons accounting for a market share of €299024.81 in 2009.

Germany’s semiconductor industry has become a major global partner and driver of development and research of LED technology.

While manufacturers from Asia are posing as competition for most of the western world in LED production, Germany’s market has maintained a relatively strong position primarily due to high demand in its large automotive sector.

Industry experts indicate that market trends will begin emerging that favor production specialization in sectors such as general lighting and traffic flow optimization, where individual or specific product design solutions are necessary. Increasing investment in research and development and cooperation with key German manufacturers will play a key role in future developments.

Participating in German trade fairs is one of the most cost-effective ways of testing the market's receptiveness to a product, of investigating competitors, and of finding customers or potential agents and distributors. Due to their international significance and large attendance, German trade fairs provide an excellent opportunity for introducing new technologies and products while presenting a gateway to both the markets of the EU and Eastern Europe.

A. Product description

This Market Brief covers the German market for light emitting diodes (LED), classified under the following codes:

HS: 8541.40-10 - Light-emitting diodes, including laser diodes

(HS 6-digit code: 8541-40 - Photosensitive semiconducting devices, photovoltaic cells & light emitting diodes)

Light emitting diodes are semiconductor light sources that are used in more and more devices as indicator lamps. Invented in 1962 by Nick Holonyak, Jr.1 as a first practical visiblespectrum light source (low intensity red light), LED’s produced today can cover all visible colors, including ultraviolet and infrared wavelengths. It is commonly distinguished between normal LEDs, high brightness LEDs (HB) and ultra-high brightness LEDs (UHB), depending on the intensity of light strength.

Illustration 1: the inside of a commonly used light emitting diode2

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LED’s present advantages such as low energy consumption, small size, fast switching and longer lifetime, compared to incandescent light sources. As a consequence LED’s are more expensive due to high precision manufacturing and a complicated heat management. In the automotive industries as well as in traffic flow optimization more and more traditional light sources are replaced by optoelectronic lights which predictably leads to a higher consumption and positive economic forecasts. The same is true for general lighting and consumer electronics such as high definition LED television.

B. Production, foreign trade and consumption

Domestic Production

In 2004 the production of light emitting diodes in Germany was at its peak. With a number of 1,010,393,000 units the production increased by 272,382,000 units compared to the production of the previous year. The turnover in 2004 had a value of € 100,647,000, resulting in a price of € 0.10/unit. In the following years up to 2008 the domestic production decreased significantly. In 2008 a total of 236,260,000 units were produced by a total of 10 domestic companies. The turnover of € 55,289,000 shows that the price per unit increased to € 0.23.

In contrast to the year 2007 the number of units produced dropped by 36.0%. Reasons for this decrease may be a mix of drivers such as increasing domestic production costs, specialization of domestic production from normal LEDs to HB and UHB LEDs, outsourcing production to subsidiaries abroad and increased competition by foreign manufacturers. The tables below illustrate this shift over the course of eight years.

Table 1: production of light emitting diodes in Germany

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Source: Federal Statistical Office Germany (Statistisches Bundesamt)

Taking the figures above into account, the graphs below visualize the change in production quantity and price. It is apparent that while domestic production is decreasing the unit price further increases.

Table 1.1: Quantity of domestic production of LEDs

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Table 1.2: Average price per LED of domestic production

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Foreign trade

The figures in table 2 and 3 show imports and exports of light emitting diodes on the one hand given in quantities (tons) and on the other hand given in values (€ thousand). A total of 809.2 tons of LEDs were exported in 2007 with a value of € 442,641,470. This is an average price of € 547,011.21 per ton. In 2008 exports increased by 11.72% to a total of 904 tons. In the same year the value in € per ton of LEDs decreased by 13.41% to € 473,689.50.

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Details

Pages
28
Year
2010
ISBN (eBook)
9783640922154
ISBN (Book)
9783640922352
File size
961 KB
Language
English
Catalog Number
v172315
Institution / College
Cologne University of Applied Sciences – Haute Ecole de Géstion Genève - Faculty for Economics and Business Administration
Grade
1,3
Tags
market brief light emitting diods

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Title: The Market for Light Emitting Diodes (LED) in Germany