01 Industry Trends
At present, the world has initially formed to North America, Europe, Asia three regions as the centre of the industrial pattern, each in different areas have a strong advantage. The United States, Japan, Germany, represented by the LED lighting industry chain manufacturing capacity of developed economies in the high-end market dominance, with advanced equipment levels and a more complete industrial chain system, but trapped in the labor, logistics, supply chain costs are high limitations, did not form the scale effect. In the Asian emerging market countries, India, Vietnam and other countries represented by the late development of the LED lighting industry, although with certain product manufacturing capabilities, but its industrial chain supporting imperfect, and also facing the country's political and economic situation is complex, social inefficiency and other problems, it is difficult to form a competitive short-term.
China, as the world's LED lighting industry, is the world's largest LED lighting products production and exporting countries, with the LED lighting industry, the whole industry chain manufacturing capacity, in the LED lighting products production, research and development, sales has a strong competitive edge.
In addition, the rapid expansion of production capacity in the LED lighting industry in recent years has resulted in a low degree of concentration in the industry and more intense market competition. Domestic first-tier brands, with their strong brand, channel, management and technology development advantages, occupy most of the market share of mid-to-high-end products. Some of the new LED lighting enterprises with their own technical characteristics and product development capabilities have also seized the industry development opportunities to grow rapidly, successfully cut into the high-end segment of the market and occupy a certain market share. Many small and medium-sized LED lighting manufacturers, due to the limitations of their product technology, quality, brand and channels, are mainly competing on price in the mid- to low-end market.
02 Industry specificity
With the gradual maturity of LED lighting technology, and the world's attention to energy saving and environmental protection issues and policy guidance, LED lighting industry has ushered in a huge development opportunity, so the cyclical characteristics are not obvious.
At present, the global LED lighting industry has initially formed an industry distribution and competition pattern centered on three regions: Asia, Europe and North America. China is an important global production base and export base of LED lighting products, Asia, Europe and North America is the world's most important product consumer market.
LED lighting products have a wide range of applications, in daily life, business, production, engineering, transportation, and other areas have long-term stable application demand, so the overall market seasonal characteristics are not obvious. However, the market segment LED commercial lighting products are mainly for commercial customers, the influence of traditional consumer habits, the holiday period is often the peak season, the domestic "May Day", "11", "Double 11 ", "Lunar New Year" period, foreign "Christmas" period, brand customers will increase the promotion and sales of commercial lighting products, so the second half of the commercial lighting industry is the peak sales season, after the New Year holidays The first half of the year, sales are relatively uneventful. Therefore, the commercial lighting industry has certain seasonal characteristics.
03 Trends in profit levels in the industry
LED lighting industry downstream market applications are extensive, the market demand is strong. LED light source faces more intense market competition, the profitability of the product is low. General lighting is the largest application market for LED lighting products, and its segmentation development varies greatly. The home lighting field is gradually entering the maturity period, and the market competition pattern has basically formed, while the profit space has been squeezed by factors such as rising labour costs and intensifying product competition.
Commercial lighting and industrial lighting and other market segments are in a rapid development stage, with commercial lighting customer personalization and customization needs continue to enrich, as well as industrial lighting scenes on safety, comfort, wisdom and other requirements, commercial lighting and industrial lighting and other market segments will remain rapid development, and differentiated, personalized products often have a higher value-added products, greater profitability.
04 Analysis of the challenges and opportunities for the industry
1 Opportunities faced
A, the world to promote the popularity of LED lighting products and national policy support
In order to improve energy efficiency, protect the environment and respond to global climate change, the US, EU, Japan and other developed countries / regional governments have introduced policies to ban traditional incandescent lamps and support the development of LED lighting industry.
B, LED lighting technology continues to develop, prices continue to fall
The progress of technology has determined the rapid growth of the LED lighting industry, LED lighting products to replace energy-saving lamps is the trend of the development of the lighting industry.LED lighting technology progress is mainly reflected in two aspects: one is the continued improvement of light efficiency. According to relevant data, in 2018 industrialized high-power white LED luminous efficacy exceeded 180lm/W, LED indoor lighting luminous efficacy exceeded 100lm/W, outdoor lighting luminous efficacy exceeded 130lm/W; second is the continuous decline of cost price. Influenced by the improvement of upstream chip technology, production capacity growth and optimization of the production process of lamps and lanterns, the cost of major raw materials has gradually decreased, reducing the production cost of LED lamps and lanterns.
According to statistics, the price of an LED bulb equivalent to 60 watts was around US$45-50 per bulb in January 2011, while by July 2018 the price had slipped to less than US$10 per bulb and further to US$7 per bulb by May 2019, with the price of LED lighting products edging closer to that of traditional energy-saving lamps.
C, LED lighting product applications continue to expand
With the rapid development of LED lighting technology, the stability of LED lighting products, service life, intelligence, display finger, luminous efficiency and other performance indicators are becoming increasingly mature, to meet the state of market demand, LED lighting products are not only to meet the needs of general lighting, but according to the different application scenarios, derived from a variety of applications, the market scope continues to expand and extend.
Before the 1990s, the LED lighting industry was in the early stages of development, the product colour range is single, the price is high, the application market is mainly driven by the demand for signal lights, indicators, etc.; the mid to late 1990s, the LED lighting industry entered a rapid development stage, the development of blue and green light technology and the decline in product prices made LED lighting in the commercial sector was rapidly promoted, and became the main driver of the LED With the continuous maturity of technology and the further reduction of prices, LED lighting products have gradually penetrated in many fields such as home lighting and industrial lighting in recent years, forming an application market with huge potential. In the future, with the development of landscape lighting, automotive lighting and other niche industries, LED lighting market demand will continue to maintain rapid growth.
D. China has a complete LED lighting industry chain, the industry has entered a mature period of development
China's LED lighting industry started in the late 1960s, after nearly 50 years of development, China's LED lighting industry has made remarkable achievements, has formed a complete industrial chain including the production of LED epitaxial wafers, the preparation of LED chips, packaging and LED product applications.
At the same time, China attaches great importance to LED lighting technology research and development, has launched the green lighting project, semiconductor lighting project, in the ten key energy-saving projects, high-tech industrialization demonstration projects, enterprise technology upgrading and structural adjustment special, 863 plan in the field of new materials have supported the LED lighting technology research and development and industrialization projects, which has a good foundation for research and development, and in the downstream LED lighting integrated The company has certain advantages in downstream LED lighting applications.
E, China's industry standards continue to improve, standardised development has become the direction
In recent years, under the guidance of the National Development and Reform Commission, the National Standards Committee, the Ministry of Science and Technology, the Ministry of Industry and other government departments, and with the promotion of relevant industry organizations and institutions, China's LED lighting standards testing and certification has made progress in stages. According to the National Standards Information Public Service Platform statistics, as of May 31, 2021, China has issued 187 national standards, 174 industry standards, 247 local standards related to LED lighting, and actively carry out group standard pilot work, and actively participate in the international organization ISO/TC274 standardization work.
In addition, the application of LED lighting products is becoming more and more extensive, its downstream applications such as outdoor places, stadiums, etc. have gradually established the relevant management norms. In addition, the Ministry of Railways, Ministry of Transport, Ministry of Public Security, etc. have also established relevant standards for LED lighting applications. The establishment of the above industry standards and specifications will help to promote the orderly and standardised development of the LED lighting industry.
2 Challenges faced
A. Relatively weak core technology
Currently, a large part of China's LED lighting products for export, and developed countries / regions in Europe and the United States market is different from the domestic market, with strict access thresholds, developed trust management mechanism, and through high technical regulations, high safety standards and other ways to LED lighting products set the market access conditions. And China's LED lighting enterprises in high-end materials, optical design, power management, heat dissipation technology and other areas of core technology has long been in a relatively weak state, LED lighting enterprises in technology without competitive advantage, which has become a major obstacle to China's LED lighting products exported to Europe and the United States and other developed countries / regions of the market.
B, the domestic LED lighting enterprise brand influence is weak
From the global development of each region, the global LED lighting industry has formed to the United States, Asia, Europe, the three regions as the leading industry distribution and competition pattern, and presents Japan, the United States, Germany as the industry leader, followed by Taiwan, South Korea, mainland China, Malaysia and other countries / regions to actively follow the echelon distribution.
Internationally, some of the international giants occupy a large market share in the high-end product market, each with its own characteristics in terms of products and markets, forming a complete industrial chain of LED lighting and taking advantage of its innovation in the field of new products and technologies, mainly engaged in the production of high value-added products, mastering key core technologies such as high-end materials, optical design, power management, heat dissipation technology. While the domestic LED lighting enterprises brand to enhance the value-added capacity is weak, or the pursuit of sales scale and ignore the brand building, with international competitiveness of the brand enterprise is less.
C, homogeneous competition phenomenon is serious
Product homogenization has been one of the problems plaguing China's LED lighting enterprises, due to the LED lighting market in the rapid growth stage, the industry in some small and medium-sized enterprises in the product, technology research and development investment less, mainly through a relatively low price to seize the market, resulting in the LED lighting industry presents a certain amount of disorderly competition, product homogenization phenomenon, these problems not only affect the LED These problems not only affect the profitability of LED lighting enterprises, but also are not conducive to the healthy and sustainable development of the LED lighting industry.
Langde Lighting & Electric Appliances Factory occupied more than 12000 square meters industrial area. During 30 years development, it has been developed from traditional lighting factory transformation and upgrading to a integrated high-tech enterprises which by modern green energy conservation and environmental protection in LED lighting, commercial lighting and home lighting.
In order to increase product research, development, design and production capacity our company spend a lot of money to buy a batch of led light source encapsulation and full-automatic SMT production equipment also testing equipment in 2012. Thus greatly improving the company's market competitiveness and guarantee the quality of the products.
Our business operation and development concept is: To drive the application of LED by LED source encapsulation. To produce customer satisfaction products by market orientation. We will make our great effort and create Wonderful future with our customers!