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MR16 LED bulbs

Projections bright amid expansion difficulties
Posted : February 26, 2008
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MR16 LED bulb
  Shanghai Britech of mainland China offers the G40 model, which consists of 12 LEDs in an E27 or 14 base. The 0.5W unit comes in white, warm white, yellow, blue, green or red.

Makers are addressing price and technical concerns as they push through with aggressive exports to key markets.

LED bulb suppliers in the Greater China region will be stepping up production and exports in the months ahead despite challenges related to pricing and key performance aspects.

Makers plan to boost shipments particularly to the key markets of Europe and North America. Demand for the line in both regions is rising, partly as a result of government regulations promoting the use of energy-saving light sources.

Mainland China's output of high-power LED bulbs is forecast to soar 900 percent this year and reach 1 million units, nearly all of which will be exported. Shipments will mostly be under OEM contracts.

Suppliers in Taiwan will be maximizing the capability of local companies to manufacture LED components as they develop and expand their selections of bulbs in the next five years. Figures from the Industrial Technology Research Institute show that the island accounts for about one-fifth of the world's output of LED components.

Spurred by the growing popularity of LED bulbs in commercial applications, Hong Kong suppliers are expecting overseas shipments to rise by at least 10 percent in the year ahead.

Companies are strengthening their foothold in this segment because they are unable to compete solely in terms of price with incandescent bulbs in the household lighting market.

As in Hong Kong, LED bulbs from the mainland are generally limited to commercial applications. Usage in residential lighting is minimal due to high prices. Despite dropping component costs, LED bulbs are still three to five times more expensive than traditional light sources such as compact fluorescent and halogen lamps.

Mainland suppliers in this report, however, remain optimistic.

"LED bulbs will gain acceptance in the next two years and be widely used in household lighting by 2015," said Peter Jang, executive director of Neo-Neon International Co. Ltd.

Makers in Taiwan also regard price as a major obstacle to expansion. Bright Beam Lite Mfg Co. Ltd said LED bulb quotes are about three times those of incandescent lamps. The company is offering discounts of up to 50 percent to attract orders.

Hong Kong suppliers are planning to keep prices stable for the next six months. Quotes currently range between $3 and $15 for 200-lumen bulbs, and from $30 to $40 for models emitting 500 lumens or more.


Solving thermal dispersion
Expansion options
Commercial-use models
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Solving thermal dispersion

Across Greater China, heat dissipation is one of the biggest performance-related aspects hampering rapid expansion in the line.

While LEDs do not generate much heat on their own, the drivers used in high-power bulbs do, consequently shortening service life and hastening light decay.

LED bulbs in theory have a service life of 100,000 hours, although models from the mainland last between 15,000 and 50,000 hours due to the heat dissipation problem.

Suppliers there, including Neo-Neon, are addressing this issue by improving chip-packaging technologies, optimizing driver and fitting designs and adopting materials with good heat-conducting properties such as aluminum.

Shanghai Britech Industrial Co. Ltd sources LED chips from Taiwan and the US and packages them in-house with a proprietary fluorescent powder compound.

Shenzhen Sinomania Technology Co. Ltd uses high-purity oxidized aluminum for the fitting to extend service life to 40,000 hours.

LED bulbs from the island have about 20,000 hours of service life. Featured suppliers, however, estimate that products can last 50,000 hours if they are kept within 63 C. MTWO Technologies Corp. even recommends that temperatures be maintained below 50 C.

Bright is employing aluminum sheets in its LED strip lights to help redirect and reflect heat generated by the bulbs.

Thermal management is also a priority of many Hong Kong suppliers, including Wellion Asia Ltd. The company is increasing R&D spending this year by 5 to 10 percent to enhance heat dissipation and energy efficiency and extend service life.

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Expansion options

Recent gains in LED performance are encouraging bulb suppliers to explore expansion opportunities.

In December 2007, for example, the luminous efficacy of mass-produced LED bulbs from the mainland reached 100 lumens per watt. This has surpassed the 60 or 80 lumens-per-watt threshold of CFLs and fluorescent tubes. Efficacy is estimated to reach 150 lumens per watt by the end of this year.

Moreover, models are now available in color temperatures ranging from 2,700 to 9,000K. Shenzhen Bang-Bell Electronics Co. Ltd said products that are 2,800 to 3,000 or 4,000 to 4,500K, translating into warm and natural white, respectively, are the best-sellers.

As such, some suppliers in Greater China are designing LED bulbs as direct replacements for traditional household light sources. Models are fitted with conventional bases used in CFLs, and halogen and incandescent bulbs, including GU5.3 and 10, and E12, 14, 17, 26 and 27.

Taiwan-based Big Sun Industry Co. Ltd has introduced the BSG11 model, which consists of a 90-LED cluster shaped like an incandescent bulb. The product can be fitted with an E26 or 27 base.

Tecklite Technology Co. Ltd, another supplier from Taiwan, offers the LG60-3W model. The high-power LED bulb is suitable for general lighting purposes.

At present, models from the mainland can be used to replace low- and midpower CFLs and halogen lamps.

Makers, however, are conducting research into LED bulbs with an output power of 10W or higher to expand applications into functional lighting.

To this end, suppliers are adopting 0.5, 1 and 3W LEDs for bulbs that give out 3, 5, 6, 7, 10 or 15W. Civilight Shenzhen Semiconductor Lighting Co. Ltd, for example, uses two to five LEDs for its 5, 6 and 7W models.

The company has boosted luminous efficacy by 15 to 20 in the past six months, while keeping prices relatively stable despite soaring metal costs. It has limited light decay to below 8 percent at 1,000 hours of operation.

Bright is among the Taiwan suppliers offering high-power designs. Its model LF310 strip light consists of six 3W LED bulbs that emit the same brightness as a 40W T8 fluorescent tube. The product can be used in ceiling lights for offices and classrooms.

The selection of LED bulbs from Hong Kong likewise includes high-power models.

Wellion's Neo Bulb is suitable for commercial applications since it uses 8W LEDs that give off 400 lumens. Priced at $34 per 1,000 units, the model has an output of 9W and 20,000 hours service life.

Hong Kong Semi-conductor Ltd adopts mostly 1W LEDs with aluminum fittings and an E27, MR16, JDR or GU10 base. The latest releases include indoor and outdoor decorative and underwater lamps with a brightness of 200 lumens and a color temperature ranging from 2,500 to 6,000K.

Microtec (China) Ltd's 3W models have a luminous intensity of 70 lux. Versions between 20 and 40 lux use 1W LEDs and are available in white, warm white, blue and pure green.

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Commercial-use models

Although expansion into conventional residential lighting is their primary goal, most suppliers in Taiwan are releasing LED bulbs and clusters for commercial applications. Models designed for downlights are fitted with a GU10 base while those for spotlights can have an MR16 cup.

"LED light is UV free, making it ideal for use with sensitive objects such as paintings, fabric and other items coated with paint," said Jane Lin, product manager of Bright. The company's LM303 model is an LED track light that consists of spotlight-type 6W MR16 LED bulbs with a brightness of 180 lumens.

Most of Bright's LED bulbs range in color temperature from 5,500 to 6,400K and give off a bluish-white light. Yellow models emit 2,700K for a warm-white color suitable for coffee shops.

The LPAR16-3W and LPAR30-7W models from Tecklite are downlights for displaying artwork. They can also be used for decorative household lighting.

Big Sun offers LED floodlights for stages and stadiums. Among its latest releases is the BS-PAR383 232 model, which consists of a 232-LED bulb cluster compatible with an E27 or 26 base. It is installed as a PAR lamp on stages.

Note: All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed.
Disclaimer: All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. We, our affiliates, and our affiliates' respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof) which infringe on any intellectual property or other rights of a third party.
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