German LED Market Grows Rapidly; Government Allocates 410 Million Euros for Photonics R&D

The German government will allocate 410 million euros starting from 2012 to promote R&D in photonics. Germany has great potential in the photonics market, both in design and production processes and in new high-tech materials. Especially in the LED sector, Germany is not only the largest but also one of the fastest-growing markets in Europe. It is estimated that the German LED market turnover will maintain an annual growth rate of 26.6% by 2016.

Currently, one-third of German street lighting has been in use for over 40 years and is about to be gradually replaced. According to new EU regulations, the installation of mercury lamps is prohibited. Therefore, the use of energy-efficient LEDs in streets and buildings will save German cities 1 billion euros annually.

Experts from Germany Trade and Invest (GTAI) stated that Germany's large market, attractive R&D environment, and the excellent supply chain of mechanical equipment prepared for LEDs all provide ideal investment conditions for Chinese companies. Chinese companies can also fully leverage the advantages of producing in Germany and the "Made in Germany" brand to gain more opportunities to enter the European market.