LED lighting market is a flash in the pan

Since the beginning of this year, LED lighting market demand downstream applications beyond the expected sustained and rapid growth, directly contributing to the rapid digestion of midstream packaging and upstream epitaxial chip production capacity, some companies even last year a rare order queuing phenomenon. Various sectors of the industry chain of 24 hours full capacity, but still varying degrees of product demand situation. So, what is the reason for such a hot market demand?

The whole industry chain is booming market

With the decline in the price of LED lighting products, the company's sales have also been explosive growth. "LED lighting application enterprise KingSun Au Optronics Co chairman Li Xuliang said," at present, 24 hours of full load production, but still can not meet the needs of customers, need to outsource some of the production links. "

The rapid growth of the downstream lighting market to the middle reaches of the packaging enterprises have brought a large number of orders. In the first few months of this year, packaging orders have allowed us to run a full line of production, mainly in the domestic market demand for downstream applications in the increase. "Zhou packaging enterprises in Zhejiang Au Optronics Co Marketing Manager Luo Jing said," since the beginning of this year, the traditional lighting enterprises to increase LED transformation efforts, including NVC, Hongyan, Delixi enterprises have to package a lot of big factory. "

Midstream packaging enterprise full load production and gradually transfer to the upper reaches of the market positive. After May this year, a major turning point in the industry, which is the industry's entrepreneurs and experts are not expected. Zheng Tiemin, general manager of Shandong Huaguang Huaguang optoelectronics Limited by Share Ltd, an extension chip manufacturer, told the China Electronics news. We thought the industry will turn in 2014, the results are now signs of supply has been very obvious. "

There are two main reasons behind this phenomenon. Zheng Tiemin said, first, and the indoor lighting market has an important relationship to start, the two is because before the domestic LED lighting companies, especially the lack of upstream enterprises started. "Zheng Tiemin said that the past year until the second half of last year, because of lower margin products, domestic manufacturers generally market pile up in excess of requirement, underemployment, none of the basic 100% equipment operation, market supply and demand balance; a sudden increase in market demand this year, but the equipment is fully started a process, capacity temporarily can not keep up, so there has been a shortage situation.

Wang Haibo, vice chairman of China Lighting Electrical Association, Nanjing University of Technology Institute of electric light source materials also agree with this point of view. On the one hand, some time ago the market situation is not good, on industrial chain including circulation enterprises are basically not to have inventory. For example, chip manufacturers generally operating rate of less than 50%. "Wang Haibo in the" China electronic newspaper "reporter said," on the other hand, also because the LED lighting products have the basic conditions of the market, has been accepted by ordinary consumers, after all, the price than the number of energy-saving lamps not expensive. "

Chen Yansheng, chairman of China semiconductor lighting /LED industry and application alliance also believes that LED lighting products is an important reason for the rapid growth of the market. With the reduction of the price of LED lighting products, its cost performance continues to improve, the market acceptance is also increasing. Chen Yansheng told the China Electronics News reporter, from the domestic market, the previous LED lighting products are mainly used in engineering, such as hotels, shopping malls, parking lot, etc.. At present, the use of LED lighting products more and more household consumers, dealers increase in retail sales, naturally led manufacturers to increase production. From the foreign market, the demand for LED lighting products has been maintained growth, but from last year's growth momentum has been very obvious. "

Rational view of the rapid growth of the market

LED lighting market continued rapid growth in the industry, there are two views, one is expected before the year after the LED lighting market explosive growth period has arrived ahead of schedule. To this end, there have been a number of LED companies in the expansion of production, many of which are new to enter the enterprise. Another pessimistic view is that this is only a transitory phenomenon, the market will soon be oversupply again.

I think these two views are too extreme. "Wang Haibo said," fast car like highway growth speed, the pace of development of the market will not increase the production capacity of the speed of the modern high-efficiency LED lighting products production system is even more so. What's more, we do not have no production capacity, but before the production capacity is not fully open, so the explosive growth of natural not established. At the same time, LED lighting products market share is very small, the potential market is also great penetration from the coast to the inland city of the city to the rural market, also need a consumer understanding and acceptance process, the consumption level also determines the LED lighting market growth will not be short-lived. "

"I don't quite agree with the idea of" exploding "or" exploding ". Chen Yansheng stressed that although the market situation is good, but the company should be agitated or pressure. LED lighting products is the market price increase good push from the downstream industry chain to the upstream and downstream of the rapid growth of the market for enterprises from Midstream packaging inadequate production capacity gradually restored, but not the upstream epitaxial chip companies are very good, small businesses will not benefit from it, therefore it should be to look at the current situation from two aspects of positive and negative. "

On the one hand, the number of LED lighting production enterprises in China is too much, the strength of large enterprises will be suppressed after the volume of small business growth momentum is conducive to promoting industrial integration, which is a positive impact. Chen Yansheng said, on the other hand, although the market demand growth is a normal phenomenon, but the sudden increase too fierce is not normal. For an enterprise, sales doubled is possible, but for the entire industry, this growth is not sustainable, is still a problem. So blind production will bring pressure library problems to the hands of the dealer to the product, but also can not be sold to consumers?"

From the point of view of the development of market economy, this round of hot market is temporary, but it will continue for some time. With the increase in capacity utilization, the market will be in short supply to oversupply, to maintain a dynamic balance. Zheng Tiemin said, we are pleased to see that the domestic LED lighting civilian market is starting, not only the city market, and even in many large towns have also appeared on the LED lighting products. Zheng Tiemin stressed that the concept of rural encircling the city is also suitable for LED lighting market, only to occupy the main market share of the rural market after the start, China's LED lighting will usher in the real spring.

Source: http://www.alighting.cn/news/201365/n991252498_2.htm