Osram Thinks LED Illumination Technology Is Still Too Expensive

The head of Siemens AG-owned Osram Sylvania predicts that highly efficient LED lighting fixtures and other energy-saving illumination fittings are to become more popular as consumers learn more about all advantages of energy cutting options and the U.S. stimulus package program was launched.
The main part of lighting manufacturing companies, like General Electric Co, Osram, Cree Inc and privately held Nichia Corp forecast that light-emitting diodes or just LEDs are a future-oriented product, which is able to cut energy consumption and offers much longer services life compared to traditional lights sources as halogen and incandescent lamps.
But there is a difference of forecasts, Osram Chief Executive Rick Leaman supposes that LEDs need about 10 years to become popular enough, while so called ‘bridge technologies’ like compact fluorescent of halogen lamps will be on the top in 2010. They would help people to adapt to changes in the lighting industry replacing traditional incandescent bulbs mildly, which consumers should be replacing with power saving lamps beginning from 2012.
Leaman says that conventional light bulbs were the only light source for over 100 years. So, their appearance, light and properties have become very important for numerous consumers and the manufacturer should offer a number of different options so that consumers had a right to choose, whatever they want.
It should be mentioned, that Osram holds the second place among LED manufacturers by sales volumes. In 2008, the German conglomerate took 12% of the LED lighting fixtures sold in the world and earned 552 million Euros.
Leaman refers to the fact that LEDs, compact fluorescent lights and halogen lamps by Osram reduce power consumption by 85%, 75% and 25% respectively. It should be noticed that manufacturing technology is still too expensive, what doesn’t let light-emitting diodes to become a favorite light source of the current day. Taking into account the described factors, Leaman states that LEDs need five to ten years to become more affordable for the consumers.
40 Watt LED lighting fixture can be taken as an example, it costs 40$, while it should cost 10$ to address more customers. Though diodes win in the fight against traditional and less expensive lights, not all people can afford to purchase LED illumination products.
Osram obtains about 60% of all sales from power-saving lights this year and plans to achieve a level of 80% in this field by 2012. In 2010, the sales of power-efficient lights may rise 5% to 10%. The company has great expectation for the U.S. stimulus package for school districts, colleges, commercial buildings and other groups, which is planned to stimulate the consumers to install more and more LED lighting fixtures and to cut energy consumption with them.
Leaman predicts that LEDs are to be sold for $100 million with help of the stimulus package.
Christmas holidays have come and have caused grow of the LED lighting products as rope lights, strings and other attributes for Christmas illumination contain light-emitting diodes, what makes them more standard.
CEO of Osram, Leaman estimates sales of festive LED lights will increase by 2 to 4 times over the last year.