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At LightingFair 2009, held at the Tokyo International Convention and Exhibition Center, a number of lighting manufacturers showcased a wide range of LED lighting fixtures. Philips Lighting, the giant in the field of lighting, is no exception. The company is exhibiting a large number of new LED lighting products and a variety of uses of LED lighting equipment in the Philips Electronics Show area in Japan, which is responsible for opening up the Japanese market. Recently, the reporter interviewed the company's CEO of the professional lighting business department CLvanSchooten on the advantages of Philips Lighting in the field of LED lighting and its future prospects.
Please talk about the LED business status of Philips Lighting.
Schooten: The LED lighting market is growing at an average annual growth rate of 20 to 30%. The company hopes to expand its business at a rate that is more than twice that rate. We have expanded the technology related to LED lighting. For example, in 2007, the company acquired ColorKinetics (Note: now PhilipsColorKinetics, acquired by Royal Philips Electronics in the Netherlands in 2007), which is good at using software to control lighting brightness and color technology, and recently acquired Italian lighting equipment manufacturers. Throughout the Philips Group as a whole, from LED lighting research and development to LED production, LED lighting equipment development and application development, we have a full range of business. This is the advantage of the company.
Is the LED lighting business affected by the global economic downturn?
Schooten: The LED lighting business is a growing field, so it has not narrowed the scope of business or slowed down the research and development process. Instead, continue to invest. The expansion of the LED lighting business is in the state of Go!Go!Go!.
The price of LED lighting products is still very high, and some people think that this is due to the high initial investment.
Schooten: Let's think back to the spotlights and chandeliers. Most of these lamps also use halogen lamps. If it is replaced with an LED lighting fixture with excellent luminous efficiency, the energy consumption can be greatly reduced, and the electricity cost, that is, the running cost, can be reduced. The sum of the initial cost and the operating cost will be cheaper than the existing light source after 2 to 4 years.
Because of this obvious effect, LED lighting can be effectively promoted. The LED lighting storm is coming soon.
To what extent will LED lighting be promoted in the next 10 years?
Schooten: LED lighting will be promoted in most lighting areas. What will enable replacement in the early days will be the use of halogen lamps. Halogen lamps are used in commercial facilities such as shops. The benefit of replacing a halogen lamp with an LED is that it reduces the cost of using the air conditioner. Because the LED does not radiate heat to the illuminant.
LEDs will replace the straight tube fluorescent lamps later. The reason is that if LEDs are used instead of straight fluorescent lighting at this stage, hundreds of LEDs are needed.
As the LED lighting market expands, we will also expand our market share. It is now inconvenient to announce a specific target share, but it can be 4 to 5 percentage points higher than the current market share. This goal can be achieved without the acquisition of other companies, only by our own strength.
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February 20, 2019