[Distribution and Channels] Wu Bingyan: Optimistic about LED Lighting Prospects
The biggest contribution of LED lighting is energy saving and durability. Compared with traditional lighting fixtures, the current technology can make LED lamps save 60%-70% of the same luminous efficiency, while the lifetime of single LEDs can reach up to 10 About 10,000 hours. The LED brands we represent are Cree and Osram, etc. They are the leading players in this field.
LED lighting has been widely used in many specific applications, such as tunnel lights and street lights. These applications have extremely high requirements on the reliability and durability of the lamps. LEDs are very suitable. In many places in China, LED street lamps are used in Weifang, Dalian and Hefei. In general lighting, in fact, many occasions have been adopted, such as in hotels and shopping malls, because traditional lamps have short service life and frequent replacement, which makes maintenance costs high, especially in hard-to-reach areas such as the 2-storey hotel lobby. Longer life LED lights are a good choice.
Arrow products can satisfy a variety of application markets, and we divide it into three parts. One is the specific lighting market such as street lamps and tunnel lights, the other is general lighting, including indoor and outdoor lighting for public and domestic use, and the third is portable lighting tools such as flashlights. In these applications, Arrow can provide solutions to system vendors.
The LED lighting market has undoubtedly brought new market opportunities to distributors. In addition to the LED itself, distributors will also have opportunities in other devices, such as electronic devices and heat sink substrates, and condenser products. Arrow Electronics itself represents the relevant electronic devices of many famous manufacturers, such as TI, NXP, Onsem LEDdriver are very mature products on the market, and these manufacturers' products have their own advantages and characteristics, customers can come according to demand select. In addition to electronic devices, Arrow is also the agent of many large manufacturers in terms of heat-dissipating substrates and condensers. For example, on the condenser, we are already the agent of 3 of the top 5 suppliers in the world. To do a good job of promoting and serving customers, Arrow offers a variety of solutions for a wide range of applications. We divide the related products into 5 or 5 application methods, and provide customers with a variety of preferred products and solutions in each application. We have made this series of solutions into our portfolio called ComparisonTable, so they can easily find the best solution to meet their needs.
We are very optimistic about the prospects of LED lighting, although its cost is still very high, but with the popularity of the application, a large number of adoption, its cost will gradually decline. At present, the global market for lighting is more than 10 billion US dollars. Of course, this includes LED bulbs and peripherals. If only LEDs are used, there are as many as 3 billion to 4 billion US dollars. From Arrow Electronics, we have experienced rapid growth since we did the relevant market in the previous year. Last year, our revenue increased by 7 times compared with the previous year. Considering the impact of the international financial crisis this year, we also think that it will be 1-2 times more than last year. growth of. I believe that the cost of LEDs will be reduced to a certain level in the past two years, reaching the price of about 5 times that of traditional lighting.