Strategically Blogging

China Pricing War II

Martin Shih 11/17/2014

We recently took a trip to China to interview top manufacturers of LED components for our upcoming China Quarterly Updates Report. According to these major LED players, we are convinced that several LED trends we predicted in my blog at the beginning of this year did and are continuing to happen.

The Dental Laser Market Needs A Filling

Allen Nogee 10/31/2014

It was just 14 years ago when a group of dental professionals came together to form the World Clinical Laser Institute. This group was formed to promote and share their ideas and experiences and to advance dental care through the use of lasers. Today, the WCLI is the largest group of dental professionals supporting the use of lasers in dentistry; with 19,000 members, the use of lasers by the dental profession has not grown as fast as many had expected. Today, in the US, roughly 7% of all dentists use lasers, which means that 93% of dentists don’t. Of the four medical laser segments we track (cosmetic, ophthalmic, surgical, and dental), the dental area is growing the slowest.

Integrated vs. Non-Integrated Luminaires

Shonika Vijay 10/30/2014

As time goes on, it is becoming more and more apparent that LED lighting will soon take over. With the current ban of 40W through 100W incandescent light bulbs and the dropping prices of LED lighting, it is no surprise that LED lighting is the lighting of the present and will be lighting of the future. However, LED lighting was first, or in some cases still is, introduced into the market to replicate the incumbent technology so that consumers don’t get scared away by a lighting system that they can’t associate with their old one. What I mean here is that having a fixture where the consumer can physically take out the lamp and replace it if it burns out. Today, there seems to be plenty of interest in fixtures/luminaires where the lamp could be replaced.

When Will OLEDs be the Next Big Thing in Lighting?

Stephanie Pruitt 10/08/2014

OLEDs have been gaining in popularity lately, mainly in displays, but also more recently in general lighting. They offer many benefits over traditional and LED lighting, including being a surface emitting light source (as opposed to point emitting), being extremely thin, and having the capability to be flexible and even transparent. OLEDs open the doors to really innovative and creative light forms that were previously not possible with traditional lighting. However, they still have a ways to go in efficacy, lumen output, and price compared to their less expensive inorganic counterparts that are still struggling to really penetrate into the market.

Shonika Vijay

High-End Lighting Markets for Solid State Lighting

Shonika Vijay 09/30/2014

Lighting has always been seen as a commodity market. In fact, most people buy their light bulbs from the same place they buy their milk. It is a price war out there with slim profit margins on lighting products; meanwhile, the market keeps demanding higher quality. The general indoor lighting market mostly consists of the following form factors: downlights, troffers, suspended pendants, track lights, and high bay lights (a detailed market report of general lighting luminaires with these form factors along with all technologies will be released this November). Downlights and troffers make up the majority of the installed luminaire base for all regions. In order to compete for penetration in these installed luminaire bases, LED lighting has had to slash its prices while making sure it can sustain the light output levels of halogens, incandescent, and fluorescent technologies.

The Early Peak Effect in the photonics market

By Tom Hausken
Our new market report highlights something I call the “early peak” effect that appears a lot in capital equipment sales, including many laser products. It’s what happens when you sell some lasers into a new application, and then sales drop off when the customers have installed all the lasers they need. It’s so typical of the micro materials processing market that I have come to include it in some forecasts.

Here are the phases:
· Rollout of lasers for a new application
· The early peak in sales
· Saturation of the installed base
· Early wearout and upgrades
· A second “baby boomlet” as replacements for wearouts peak


If you don’t account for the early peak effect, you can overestimate laser sales by assuming that sales continue at peak levels, year after year. The news of new applications have surprisingly wide reach and long tails, feeding the perception that sales are higher than they really are, especially if the application is really cool, like stent cutting.

What keeps the market going is that there are new applications launched on a regular basis that smoothes out the overall growth in the market. But, sales any particular company can be very choppy. And, the mix of products grows more diverse with every new application in the market.


A laser salesperson will recognize the early peak effect, but it gets lost when you look at overall market numbers. It’s not hard to explain to the old-timers in the business, but it doesn’t have a ready label, as far as I know. I couldn’t come up with a better name for it, so for now it’s the “early peak effect.” If you want to call it the “Hausken effect,” that’s fine with me, too.

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