Osram to transfer general lighting lamps business into independent legal structure
Based on its discussions held on April 15, 2015, the Managing Board of Osram Licht AG intends to transfer the general lighting lamps business to an independent structure.
This business includes traditional as well as LED-based lamps from the current business units CLB and LLS. The measure is to be submitted to the Supervisory Board at its next regular meeting on April 28, 2015.
Many industry analysts have begun to speculate what the move could mean for Osram. LEDinside believes the restructure will concentrate the company on automotive lighting, project-based smart lighting solutions, and advanced light source technologies (such as LED and laser). These businesses target the business-to-business market, which offers higher profit margins as well as presenting higher technological thresholds for market entrants.
According to LEDinside, the LED lighting industry’s market value reached US$21 billion in 2014 with LED light bulbs accounting for 37%. Since the beginning of 2011, however, LED light bulb pricing has reduced 30% annually. Although falling prices stimulated strong demand, price wars continue to erode industry players’ profit margins. The profit and shipment growth of LED bulbs cannot compensate the market decline in traditional lighting products, and this is the main factor behind the recent actions taken by Osram, the research firm said.