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    • Denggle > Lighting News >

    The Deficit of LED Lighting Pushes International Brands to Cut off Their Lighting Business

    The Deficit of LED Lighting Pushes International Brands to Cut off Their Lighting Business

    Source： 23 Sep 2018
    Osram Cree LED Lighting GELED Lighting Lighting

    The market scale of LED lighting has continued to grow with the driving forces from the emerging market and the transition of traditional lighting to LED lighting. The expanding market has attracted many companies to join, leading to escalating competition and sliding profit. Many LED companies have thus decided to quit their lighting business or to reorganize their strategies.



    GE to complete sale of its lighting business by the end of 2018
    The lighting business of GE includes GE Lighting, which focuses on consumer lighting applications, and Current, powered by GE, which provides energy efficiency solutions. In GE’s 2017 annual report, the company has addressed the global competition in the lighting market, noting that “Lighting faces competition from businesses operating with global presence and with deep energy domain expertise. Our products and services sold to end customers are often subject to a number of regulatory specification and performance standards under different federal, state, foreign and energy industry standards.”



    To take a look into the annual report of GE in 2017 which shows the earnings of each segments in the past few year, it is not so surprise to understand why the company has decided to sell its lighting business. The profit margin of GE’s lighting segment from 2013 to 2017 was 4.6%, 5.1%, 7.3%, 4.1% and 4.7% respectively. In comparison with other segments whose profit margin vary from 10-20% in the pass few year, lighting has been the least profitable segment of the company.

     

    The Deficit of LED Lighting Pushes International Brands to Cut off Their Lighting Business

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