LED lighting industry future market analysis

Although the LED industry is developing very rapidly in China, there must be many problems that cannot be ignored behind the rapid development. For example, the crisis of the industrial chain structure, the imbalance of industrial structure, the lack of core technology and the awareness of product patent knowledge protection and other issues have made the development of the domestic LED is facing great challenges.

For the current status of domestic LED development, the domestic part of the government began to announce and implement measures to abolish domestic commercial banks' limit on loans for overcapacity enterprises and LED industry planning. The state has begun to make up its mind on the status quo of this chaotic LED industry.

Several factors constrain the development of the LED industry LED lighting is facing a variety of difficulties

LED lighting industry has ushered in a development opportunity, but also found some serious problems in the industry that hinder the development of the industry. According to the "Twelfth Five-Year Plan", by 2015 China's LED industry scale will reach 500 billion yuan, and the industry will face enormous business opportunities. The China Non-Governmental Science and Technology Promotion Association found that after investigation, China's LED industry is still facing many difficulties, and even has formed a restriction of the sustainable development of the industry.

Excessively high product prices, commercialization and promotion are difficult

The state has already launched the "Ten City Million" LED energy-saving plan. There are currently 42 cities listed in the plan. However, in addition to the gradual popularity of LED lighting for decoration, the vast majority of LED general lighting applications are still limited to government demonstration projects. The main reason for difficult marketing is the high price of LED lighting products. As chips account for 30% or more of the cost of LED products, China's lighting-grade high-end LED chips mainly rely on imports, and the prices are relatively expensive, resulting in high prices for LED lighting products with equal lightness, and no comparison with ordinary consumers. Great attraction.

The fierce competition in product homogeneity lacks leading companies and leading brands

China's LED industry has a large number of companies and overall progress has been made. However, the scale of the enterprises is generally small and there is no leading company. As most of the LED manufacturers have submitted product R&D and major module production to the solution providers, the LED entry threshold has been reduced, and the market competition has become fierce. At present, there are 1950 LED packaging companies in China, and the number of new LED products applied by enterprises is less than 530; LED lighting company has more than 300 companies, and the products are basically in the stage of plagiarism. Homogeneous competition has caused price wars and smoke, lack of benchmarking brands, the size of the company is difficult to grow, the industry lacks credibility. It is imminent to cultivate leading enterprises and accelerate the construction of independent brands.

The supporting policy of the government and the status quo of industrial development are not matched

The LED industry is one of the strategic emerging industries that the country has focused on fostering and developing. National, provincial, and municipal regions have increased investment in support for technical research and demonstration projects. They have introduced a large number of industrial support policies and pilot projects through applied engineering programs. Support the use of LED lighting products. This series of measures has effectively promoted the technological progress of China's LED industry. However, the next five years will be a crucial period for LED transition from the R&D and demonstration stage to the full marketization stage. As an industry support policy, it needs to be more systematic and meet the current state of industrial development, and from the consumer level, tax reduction, purchase subsidies, and government procurement As well as refinement of government funding and preferential loans at the R&D level.

Lack of key technologies and core patents

Patented technology is an important means for major global LED manufacturers to gain competitive advantage and maintain market share. Domestic patented LED technology is not perfect. Upstream patents are mostly owned by foreign manufacturers. Technology is controlled by people. More than 80% of high-end chips come from foreign countries or Taiwan. Companies cannot extend to the high-end profit segment. Products are patented due to lack of principle patents. Blockade, export restrictions. Even at the concentration of more than 80% of companies in China, the packaging and application downstream areas are at a lower level. As LED technology follows Moore's Law to continuously improve performance, reduce costs, and greatly expand the application field, the market space has multiplied. Foreign LED companies with advanced R&D technology and good brand image “occupy cities” and occupy the market. Domestic LED companies face the challenge of how to further improve their own technology and build their own patent defense system.