LED industry trends: integration or acceleration

According to the latest news from the Ministry of Finance website, the central government has accumulatively allocated more than 40 billion yuan in funds for the "Energy-saving Products Benefiting the People's Project." As one of the key points for the promotion of energy-saving products, LED lighting is rapidly seeping into people's daily life under the policy support. At the same time, however, the industry's current low level of concentration and mixed results are also accelerating the consolidation of the industry.

Relevant policies may already be brewing. The China International Semiconductor Lighting Application Technology Forum held recently revealed that China's mandatory national lighting safety standards are expected to be introduced next year, and the mixed LED industry is facing “reshuffle”.

In Zhongshan City, Guangdong Province, where LED manufacturers gathered, early this month, there was a case of the collapse of the company's Hung Kee Lighting Factory. In fact, Zhongshan City is a low-end LED company with a large number and serious competition. In view of this uneven industry, Zhongshan City has started preparations for the preparation of the LED industry development plan, and plans to introduce at the end of this year.

Industrial Securities analyst Liu Liang believes that as more and more LED manufacturers enter the home lighting market, competition within the industry will become increasingly fierce, and integration will continue to accelerate. Under various policy orientations, industry leaders with technical and financial advantages will benefit even more. After all, the enlargement of this industry cake is a general trend.

In the promotion catalog of the Ministry of Finance's energy subsidies, LED lights in the field of green lighting are a key point, and the promotion efforts of local governments are also increasing. Shanghai Semiconductor Lighting Engineering Technology Association said on Wednesday that the Shanghai Development and Reform Commission is studying LED lighting subsidies and is expected to be completed this year. Previously, Guangdong Province also required the Pearl River Delta region to complete the renovation of street lamps by the end of 2013. At present, 800,000 baht has been completed. Fujian Province requires that before the end of 2015, LED lighting products should be widely used in the public lighting industry in the province.

With the joint efforts of policies and industry chains, LED prices have dropped significantly. Philips has introduced LED bulbs that sell for less than US$10. Toshiba has introduced several low-cost LED bulbs that sell for less than US$8 instead of 40W. Dong Bin Securities analyst Xiao Bin believes that the sweet spot of LED products is approaching, as consumers gradually increase the recognition of LED lighting, this year's overall LED lighting penetration is expected to exceed 20%.

Data predicts that China's LED lighting market will reach 32.4 billion yuan this year, with an annual growth rate of 36%, of which household lighting has the largest contribution, with an annual growth rate of 96%. According to China's "12th Five-Year Plan" for the development of semiconductor lighting technology, by 2015, China's LED lighting industry will reach 500 billion yuan, LED lighting products will account for 30% of general lighting, and 20 to 30 companies will be cultivated. Leading company.