Long-term development of LED industry

Recently, Xiaobian often read news about the LED industry, and the LED industry is clearly in an era of turbulence.

First of all, LED shuffling has already begun. A common saying is that shuffling results in eating too much. However, even large-scale LED companies listed on the market are troubled by the current industry-wide concern. As a result, some large companies have also started to try to get together, through multi-level cooperation in procurement, orders, channels, and specifications. Heavyweight companies staking out the overall situation and aim to “strengthen and expand”. However, overseas giants are also segmenting the domestic LED lighting market. Under the double attack of domestic and overseas, many LED small businesses and small The days of workshops are getting sadder and harder. According to industry sources, from the end of last year to the beginning of this year, a group of LED lighting companies have begun to die, and they are almost all small workshops for small businesses. “The reshuffle of the LED industry is an inevitable trend of development. Only companies with advantages in technology, quality, channels, cost control, and capital will be able to finally make a comeback.” At the first high-level seminar on IPO financing and private equity investment in the LED industry, Liu Jianyun, president of Shenzhen Lihe Qingyuan Venture Capital, said. However, after shuffling, how to adjust their own development goals and product strategic positioning? How to effectively achieve the integration of the LED industry chain resources? The future of the LED industry where these issues still need more consideration.

Secondly, the reality is that, analysis of domestic and foreign industrial development policies, there is no doubt that LED lighting represents the direction of the future lighting industry, with the policy support and the overall innovation of technology, ideas, LED industry in the next three to five years to start explosive Growth model. So how big is the "cake" in the LED market? When can we really grow? This is a concern for many LED companies. According to the “Twelfth Five-year Plan” development goal, the output value of LED is expected to reach 500 billion yuan. What is the concept of 500 billion? Expert analysis said that last year China's LED output value exceeded 100 billion yuan, equivalent to four or five times the output value of LED in the next three to four years. “This is a conclusion drawn from the dual analysis of national policies and market conditions. The possibility of realization is very large.” This will create a great push for the domestic LED industry, and many companies will usher in explosive growth.

In addition, even with such optimistic expectations, we know that LED lights are energy-saving and environmentally friendly, but LEDs have always been “appeaseable”, and LED products have always been paralyzed in backlight sources, landscape lamps, street lamps and other fields, failing to break into the general lighting market. What are the constraints on its development? "Price", many experts or entrepreneurs have stated that price is the biggest constraint. At present, lamps of the same illuminance, the price of LED lamps are two to three times that of similar energy-saving lamps, but the energy-saving rate is 30% to 40% higher. An LED lighting manufacturer said that if it counts long-term accounts, it is certainly a cost-effective LED, but in the current cognitive environment, consumers compare more current price differences. The industry believes that under the new round of policy support, the industry is expected to generate 10 billion-level end-product demand in the next year and a half, thus promoting the LED industry to form a huge scale effect. The heavy volume of end products will in turn stimulate upstream chip demand. In the course of competitive tendering, the continuously decreasing tender price will lead to a decrease in retail products, which in turn will push up the terminal demand, thus forming a virtuous cycle of “expectation surges, scaled production, price reductions, and increased demand”.

All in all, LED product application and promotion, decision-making support is on the one hand, how to quickly achieve standardization within the industry, to solve the problem of low localization and high cost of restricting the popularity of LED street lamps, amplification technology and application of the dual effects and other issues, worthy of the industry Fang Shensi.

The development of the LED industry is still a long way ahead, and we look forward to continuing to search for it.