LED industry competition pattern, how to change the number of enterprises in the "chaos" to win

According to the latest research report released by the High-tech LED Industry Research Institute (GLII), the demand for LED general lighting in the Chinese market in the third quarter of 2012 increased by 52% year-on-year. It is expected that the demand growth in the fourth quarter will exceed the third quarter, with a year-on-year increase of more than 60%. . At the same time, the number of domestic LED lighting companies increased rapidly in the first half of 2012, which indirectly led to increasingly fierce market competition.

China is a big country in the production and consumption of lighting products, and lighting power accounts for about 13% of the total electricity consumption of the whole society. Compared with traditional lighting fixtures, LED lamps have the advantages of low heat generation, low power consumption, long life, good color rendering, fast response, no flashing frequency, no eye injury, and light and short products. If we replace all of the 1.4 billion incandescent lamps in use in China with LED lamps, we can save 48 billion kWh per year.

Relevant experts said that LED, as a strategic emerging industry in the global competitive development, has become a new engine for promoting industrial transformation and upgrading and promoting energy conservation and emission reduction in the post-crisis era. In May this year, the Guangdong Provincial People's Government issued the Notice on Printing and Distributing the Implementation Plan for Promoting the Use of LED Lighting Products in Guangdong Province. The notice requires that public lighting be forced to popularize LED products within three years. A stone stirred up a thousand waves. The national standards for urban road lighting design (CJJ45-2006) have strict regulations on the degree of contrast, uniformity, glare, etc., and the current scientific and technological content of LED lighting products in the Chinese market simply does not meet the requirements. If it is really enforced, the consequences can be imagined.

The market is vast and chaotic
According to the "12th Five-Year Plan" for the development of semiconductor lighting technology, by 2015, the scale of China's semiconductor lighting industry will reach 500 billion yuan, and the cost of LED lighting products will be reduced to 1/5 of 2011, the share in the general lighting market. To reach 30%. In this regard, the industry said that with the policy support and investment of the national authorities and local governments, China's LED lighting industry will enter a period of explosive growth in the next three years.

It is understood that with the continuous improvement of LED technology and the continuous decline of cost, the application of LED in urban landscape lighting, decorative lighting and small-size backlight has entered a mature stage; it has entered a high-speed development in the field of large-size backlight and large-screen display. The growth period; general lighting products will soon enter the high-speed development period from the introduction period.

At present, China has become the world's largest LED manufacturing country. In 2011, the output value of China's LED industry (excluding Taiwan) was 156 billion yuan, with a growth rate of about 30%. It is estimated that the total output value this year will exceed 200 billion yuan.

At the same time as the rapid development of the LED lighting industry, there have been some noises and chaos in the market. Under the guise of the government's favorable policies and broad market prospects, the temptation of countless gold diggers to follow suit, and they want to seize the opportunity in the exploration stage of this emerging industry. Many domestic foreign industry players or powerful enterprises, or jointly set up factories, or set up subsidiaries to attack LED lighting. The investment boom of a swarm of bees, coupled with the large-scale entry of foreign-funded enterprises, the competition in the LED industry is rapidly heating up.

Some companies that only want to "sell a penny" enter the industry, but only blindly speculate on the concept of energy saving, but can not really save energy. Faced with the fierce competition in the market and the pressure from rising raw material costs and blocked exports, these companies are willing to sacrifice quality. These inferior LED products have disrupted the market price and made consumers' trust in LED products greatly compromised, leading to a vicious circle.

According to public information, there are currently 8,000 LED companies in China, of which more than 5,000 are in the downstream of the industrial chain, do not master the relevant core technologies, and the gross profit margin is very low. Many companies are facing the risk of bankruptcy. As of the end of 2011, there were more than 80 LED lighting companies in Shenzhen. In Foshan, Guangdong Province, which is in the same province as Shenzhen, nearly 10% of enterprises closed down in 2011.

Demand growth exit point "bright"


In the third quarter of 2012, the domestic LED general lighting output value increased rapidly. In addition to benefiting from the rapid growth of domestic market demand, it is also directly related to the rapid growth of export market demand. According to GLII statistics, the growth of China's LED general lighting products declined in the second quarter of 2012, but the export growth in the third quarter was significant, with a sequential increase of more than 40%. The global economic environment in 2012 was the worst year since 2008, but the export of LED general lighting products in China continued to grow, because the countries are taking a series of measures to stimulate economic development.

In 2012, the global economic weakness continued, but the concept of LED energy-saving lighting has been recognized by governments and the public, especially in Europe, America, Japan and South Korea where energy conservation is strong. In addition, the continued deterioration of the economy has also forced governments to adopt policies such as energy conservation and emission reduction, and stimulate consumption to stimulate economic growth. GLII statistics show that in the regional distribution of China's LED general lighting export market in 2012, Europe has become the largest overseas market, accounting for more than 30%.

At the same time, Russia, Turkey, Brazil, Australia, South Africa, India and Southeast Asia have become the new highlights of this year's export market. Among the LED indoor lighting products, LED fluorescent tubes, LED bulbs, LED ceiling lamps, LED spotlights, and LED panel lights still account for the largest proportion. Among them, LED panel lamps are the highest growth rate among export lighting products this year. , an increase of 80% year-on-year. GLII expects that domestic LED general lighting products will enter the fast lane of market demand growth in 2013, spurred by the double positive factors of rapid growth in export and domestic demand this year.

Innovation promotion standards are king
For some small and medium-sized LED companies to close down, the experts pointed out that there is no need to panic. It is normal for 10% to 20% of enterprises to withdraw from the market at the beginning of the industry development. The reshuffle integration is the only way to return the impetuous LED industry to rationality.

Wang Dianxi, honorary president of Shenzhen Semiconductor Lighting Industry Development Promotion Association, believes that the broad development prospects of the LED industry are obvious to all. It is impossible to judge whether the production capacity is excessive with short-term market performance. At present, China has formed LED industry clusters with three major regions including Bohai Sea, Yangtze River Delta and Pearl River Delta, and has a number of outstanding leading enterprises. Compared with the widely criticized voices such as “overcapacity” and “closed tide” on the Internet, the core technology research and development capabilities are relatively weak, patent barriers and lack of industry standards are more worthy of attention, which really restricts the rapid development of China's LED industry. development of.

Guan Baiyu, secretary-general of China's semiconductor lighting/LED industry and application alliance, holds the same view. She pointed out that the LED lighting industry is a typical high-tech industry with high investment, high returns, high risk and high-end talents. It is also a multi-technology integration industry with a long industrial chain involving semiconductor materials, optoelectronic devices, integrated circuits, New light sources, lighting appliances and applications. To this end, further efforts will be made to support LED companies to improve their independent innovation capabilities and to develop and master key technologies. Through the support of relevant national departments and local government science and technology projects, multi-party resources will gather technological innovation and product innovation of semiconductor lighting. At the same time, it is necessary to build the innovation institutions such as the enterprise technology center and lay a solid foundation for building a technological innovation system. Strengthen the interaction of the industry chain, including materials, chip manufacturing, packaging and testing, power modules, drive circuits, light sources, lamps and special equipment, instruments and other links. To meet the needs of the market, we will increase the application of LED lighting in various fields and promote the coordinated development of industry and applications. "For the healthy development of the LED industry, the government's policy support and application promotion, enterprise technology innovation, industry standard setting, one can not be less." Guan Baiyu said.

Expert pulse
Seize the commanding heights of industrial development

Industry experts said that there are many variables in the competitive landscape of China's LED industry, but companies with capital, scale, technology, brand and market channel advantages will become the mainstay of market integration. As long as we adhere to the combination of government promotion and market operation, adhere to the combination of technological innovation and application demonstration, adhere to the combination of cultivating emerging and transforming traditions, and adhere to the combination of supporting enterprises and cultivating clusters, China's LED industry can seize the commanding heights of industrial development and grasp the market through efforts. The international voice of competition.

(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)

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