Led Dominate the Market?
Motion: The Major Multinational LED Lighting Companies will continue to dominate the LED Market in 2020.
Against.
By the meaning of multinationals, they are companies that operate internationally, usually with subsidiaries, offices or production facilities in more than one country. And dominating market is defined as the market share gained exceeding 50% globally.
Undeniably, the current top 10 market players (table 1) are all multinationals with presence mainly in the 3 major markets of Asia, Europe and North America. But it does not necessarily mean that they are going to dominate the market for another 5 to 7 years. In 2011, the top ten manufacturers accounted for 68% of all LED component sales but 75% of total sales in 2010. A further decline can be foreseen and even a lost in the market leadership position in the coming years due to the environmental changes including government policy and subsidies for local companies in the emerging market and industry development changes. Considering all the factors, the role of multinationals and emerging players will change across time and thus the market share.
First, government policy provides a strong support for the local-based companies to fast grow in the emerging market and create barrier for multinationals to enter and expand the local market. In the coming decade, Asia is projected to be one of the highest growth regions and account for over 35% of the global lighting market and expected to rise to 45% by 2020 with China being the largest and most fast –growing market . Thus Asia especially China is a determining market to claim market share leadership. So is multinationals doomed to dominate these emerging market? The answer is not necessary. Asia, in addition to becoming the major LED lighting consumer, is expected to be the chief supplier of LED chips and packages with factories in China, Taiwan, Korea, and Japan, taking over multinationals to dominate local and regional markets. Take
Against.
By the meaning of multinationals, they are companies that operate internationally, usually with subsidiaries, offices or production facilities in more than one country. And dominating market is defined as the market share gained exceeding 50% globally.
Undeniably, the current top 10 market players (table 1) are all multinationals with presence mainly in the 3 major markets of Asia, Europe and North America. But it does not necessarily mean that they are going to dominate the market for another 5 to 7 years. In 2011, the top ten manufacturers accounted for 68% of all LED component sales but 75% of total sales in 2010. A further decline can be foreseen and even a lost in the market leadership position in the coming years due to the environmental changes including government policy and subsidies for local companies in the emerging market and industry development changes. Considering all the factors, the role of multinationals and emerging players will change across time and thus the market share.
First, government policy provides a strong support for the local-based companies to fast grow in the emerging market and create barrier for multinationals to enter and expand the local market. In the coming decade, Asia is projected to be one of the highest growth regions and account for over 35% of the global lighting market and expected to rise to 45% by 2020 with China being the largest and most fast –growing market . Thus Asia especially China is a determining market to claim market share leadership. So is multinationals doomed to dominate these emerging market? The answer is not necessary. Asia, in addition to becoming the major LED lighting consumer, is expected to be the chief supplier of LED chips and packages with factories in China, Taiwan, Korea, and Japan, taking over multinationals to dominate local and regional markets. Take