The ex-factory pricing of LED lighting has falled to US$1/W in 2012. LED manufacturers across the globe feel that the ex-factory price of LED lighting will fall further to US$0.70/W in 2013.
While the ex-factory price in 2011 was US$4/W and in 2012, the price fell to US$1/W. If the ex-factory price of a 3W MR16 is around US$3, the cost of LED components accounts for about 20 per cent of the production cost, and there is limited scope the price of LED components to fall. But despite this, ex-factory price of LED lighting is likely to fall by 30 per cent in 2013. This is due to the rising competition from China based LED packaging houses. In addition, due to the debt crisis, demand for LED lighting in Europe has been weak. Nevertheless, demand in Japan in the second half of 2012 continues to increase.
