In the LED industry,LED home market is an important market for future earnings, but manufacturers have failed to overcome domestic lighting in this area.First, the current LED companies target market mainly in government procurement, hotels and other specialized markets, high profits, but afterall it is limited.Second, the current LED companies involved in the domestic civilian market are not too much, they are mainly in outdoor lighting, commercial lighting. Compared with LED home lighting, price acceptance in these areas is easier to make the LED on corporate profits.Sales of LED lights are not very good , because prices of LED have a big difference between energy-saving lamps and incandescent. For example, price of 3W LED light is 20 yuan, for 7W it is 90 yuan, and 10 yuan for energy-saving lamps,for incandescent it is only 1 yuan.National Development and Reform Commission has formally issued a document to put forward the "five years later China will basically phase out incandescent light." According to industry estimates, out of incandescent lamps it will form the market size which is up to several hundred billion dollars, as the best alternative, LED lighting industry is expected to quadruple within five years.So, how to break into the home lighting market? First, need to understand the price is one of the important reason LED home lighting is not overcome. The high price of LED is mainly due to higher costs of chips, the cost of chips accounts for at least 1 / 3 of LEDs. However, two years ago, chip price of 1W LED is about $ 3, but now is down to less than $ 1. With the decline in chip prices, LED high prices issue is expected to be resolved within the next five years.To reduce costs to account for market opportunities. Some experts pointed out that if they do R & D by theirselves which need a great investment, small businesses can not afford this. To reduce costs, while making products with high technological content, to choose co-operation with research institutions is available.