The three major markets drive the growth of the LED industry. Which one are you most optimistic about?
LED has the characteristics of energy saving, environmental protection, safety, long life, low power consumption, easy maintenance, etc. It is widely used in the fields of decoration, lighting, indication, display and so on. According to the functional characteristics of LED application products, LED application products can be divided into LED display products, LED lighting products, LED backlight products.
China's LED industry began in the 1960s. Due to the relatively few fields of application at that time, the industrial development was relatively slow. It was mainly led by research institutes or enterprises with backgrounds of scientific research institutes, and their industrialization capabilities were limited. Into the 21st century, with the continuous breakthrough in LED technology innovation and the introduction of various national support policies, the domestic LED industry has developed rapidly. According to statistics, from 2006 to 2014, the overall size of the LED industry increased from 35.6 billion yuan to 350.7 billion yuan, with an average annual compound growth rate of 33%. It is estimated that from 2015 to 2017, it will continue to maintain a growth rate of more than 30%. It is expected that by 2017, the market size will reach 748.5 billion yuan.
Three major markets drive LED industry growth
The first is the general lighting market.
Thanks to the ban on the sale/disuse of incandescent lamps and the declining prices of LED lighting products by various governments, the LED lighting market is expected to achieve rapid growth in 2017, and the market size will exceed 40 percent in the total LED application market to reach US$40 billion. . As the world’s second-largest LED lighting market, China’s sales volume in 2016 will reach US$7 billion, a year-on-year increase of more than 30%, and it is one of the fastest growing markets in the world. At the same time, in the first half of 2016, China's physical channel LED penetration rate has exceeded 60%, and sales of e-commerce channels have doubled, which has laid a solid foundation for the LED lighting market in China.led bulb light
With the continuous improvement of the LED luminous efficiency and the continuous maturation of the production process, LED light sources have been widely used in fields including general lighting, backlighting, signal lamps, display screens, etc., and have formed a market scale of RMB 100 billion. From 2010 to 2015, due to the rapid growth of consumer electronics such as mobile phones and tablet PCs and the replacement of CCFLs in TV backlighting, the proportion of LED backlight applications has remained at around 50%. At the same time, under the support of governments in various countries and the decline in LED prices, LED lighting has grown significantly. In 2014, LED lighting has surpassed LED backlighting to become the largest LED application-related market.led tube light
The second is the street lamp market.
Due to the control of international giants, it is more difficult for Chinese-funded enterprises to enter the overseas markets of LED lamps. Therefore, the domestic street lamp market has become the focus of competition among major Chinese companies. It is expected that the market size of LED street lamps in China will reach 30 billion yuan in 2016, an increase of more than 50% from the same period of last year, and the market potential is huge. LED manufacturers with EMC qualification and cost-effective products will become the main competitors in this market. The transformation of LED street lamps has become an important part of the implementation of energy-saving policies in Europe, the United States and Japan. For example, there are over 600 cities in the United States that have already started or plan to install LED street lamps. London, UK plans to replace 35,000 of the 52,000 street lamps in the whole city with LED lamps by 2016. Several provinces in Canada and several countries including India, Russia, and Southeast Asia are involved. The emerging market countries have also introduced LED outdoor lighting related policies. It can be seen that the transformation of LED street lamps has become a global trend.led street light
The third is LED small pitch screen market.
The LED small-pitch screen, as a substitute for the traditional large-screen splicing product with 60-inch or more, brings over 25 billion yuan of market opportunities for LED screen manufacturers. With the increase of the domestic market penetration rate, Founder Securities believes that overseas markets will become the focus of competition for powerful Chinese companies. Enterprises with good product quality and overseas sales experience will gain first-mover advantage.
Since the LED small-pitch products currently only dominate the 60-inch or more traditional splicing products in terms of cost performance, the LED small-pitch screen market is mainly concentrated in the field of large-size splicing screens. In 2015, the market size of domestic 60-inch and above splicing screens is approximately 4.5 billion yuan. If coupled with overseas market demand, Founder Securities expects the global market for 60-inch and above spliced screens will exceed 25 billion yuan, so the market for replacement is huge. Since LED small pitch screens started earlier in China and domestic users received a higher degree, the domestic market is growing faster than overseas markets. With more and more LED manufacturers joining in succession, it is expected that the domestic LED small pitch screen market will tend to accelerate saturation in the future, so Founder Securities believes that overseas markets will become the focus of competition among Chinese companies, and products with excellent quality and overseas sales experience Will get first-mover advantage.led flood light
In the context of the rapid development of the LED general lighting market, LED street lamp market and LED small-pitch screen market, the LED industry will usher in rapid development.
Advantageous and unfavorable factors that affect the development of the LED industry
1. The favorable factors that affect the development of the LED industry
(1) Strong support for national policies
The LED industry, with its high-tech and energy-saving features, is a high-tech industry with a focus on development in China. It has received policy support from the State Council’s Subordinate Development and Reform Commission, the Ministry of Finance, the Ministry of Industry and Information Technology, and the Ministry of Housing and Urban-Rural Development as well as numerous financial support from local governments, such as 2011. The Ministry of Housing and Urban-Rural Development issued the "12th Five-Year Plan for Urban Green Lighting Planning", and in 2013, the "Minimal Plans for Semiconductor Lighting Energy-Saving Industry" jointly issued by the six ministries and commissions including the National Development and Reform Commission and the Ministry of Science and Technology. The country’s strong support has provided the industry with better development opportunities and environment, and has a greater role in promoting the development of the industry.
(2) Increased awareness of energy conservation and environmental protection, incandescent light ban sales plan to accelerate the popularity of LED lighting
At present, global resource constraints and climate warming have created a severe challenge to human survival and development. The traditional reduction of non-renewable energy such as oil and natural gas, vigorously developing new energy-saving industries, developing low-carbon economy, and advocating low-carbon life are the general trend. In this form, combined with the strong propaganda influence of the state and public welfare organizations, people's awareness of energy conservation and environmental protection becomes more intense, and LED lighting products will be more likely to be favored by consumers. At present, the major economies in the world have already launched incandescent lamp elimination plans. In China, the National Development and Reform Commission issued the “China's Road Map for Phase-out of Incandescent Lamps” in 2011. It states that “On October 1, 2012, the prohibition of the import and sale of incandescent lamps of 100 W or more general lighting; from October 1, 2014 onwards. , It is forbidden to import and sell incandescent lamps with a general lighting of 60 watts or above. From October 1, 2016, it is prohibited to import and sell incandescent lamps of 15 watts or more. Currently, the incandescent lamp elimination plan in China is progressing as planned. As incandescent lamps gradually exit the market, the popularity of LED lighting will further accelerate.led high bay light
(3) Wide range of LED applications
With the progress of China's semiconductor lighting technology, LED applications are also more and more widely, its application of up to hundreds of products, basically covers the instructions, signals and displays, backlight lighting three categories. At present, the use of domestic LED lighting products in addition to home lighting, it is also widely used in traffic lights, large LED screens, digital products backlight, architectural landscape lighting, road tunnel lighting and other fields. In addition, new application directions have emerged, such as applications in aerospace, medical, and agricultural fields.
2. The unfavorable factors that affect the development of the LED industry
(1) Low industry concentration The concentration of domestic LED lighting equipment industry is relatively low, and the market competition is extremely fierce. In recent years, many traditional lighting manufacturers have transformed into the LED lighting market, and the market competition has become more intense. According to statistics, the number of domestic lighting companies has exceeded 20,000, and the phenomenon of low-price competition in the market is very serious. In the future, the integration of advantageous resources by the LED industry through mergers and acquisitions will become the trend of the times. Some small enterprises with weak competitiveness will be eliminated.
(2) Lack of unified industry standards and testing systems At present, there is no corresponding industry standard for LED lighting products in China and it is impossible to uniformly test and certify product specifications and quality. At the same time, the testing equipment and testing methods of the products cannot meet the needs of the rapid development of the industry. The construction of the testing system is imminent. The specifications of LED lighting products on the market vary, and it is inconvenient for consumers to choose and contrast, which is not conducive to the long-term development of the LED industry.
Dalian Xinghai Technology Co., Ltd.