LED is considered to be the most promising green light source in the 21 century due to its advantages of high brightness, low heat, long lifespan, nontoxic and renewable characteristics. In recent years, global LED market demand has continued to increase, indicating a rosy prospect.

However, stimulated just by this market potential, many enterprises have rushed to throw themselves into LED industry, competing for the huge benefit. Since the second half of last year, affected by Eurozone crisis, global LED market demand shrunk and along with rising material cost and intensified market competition, many LED enterprises went bankrupt or shut down. Some that struggled to survive went for price war by selling products at a sacrifice.

Some enterprises use inferior raw material in order to reduce price in exchange for maximum sales volume. But this has seriously damages LED quality, resulting in the disorderly competition in LED market.
 
Industry insiders point out LED industry will develop in the direction of new pattern and high quality LED lighting fixtures. Enterprises that fail to have a clear understanding of it will be phased out sooner or later.