The next 5 years, LED industry will face a major reshuffle

Zhang Xiaofei believes that with the rapid warming of the industry at the beginning of the year, the new entrants soared, leading to the industry price war more and more fierce, many companies lose money. The next 5 years, the industry will face a major reshuffle. Price war through the whole industry chain over the past two years, LED industry overcapacity serious, frequent collapse of the tide.

In 2013 is about to come to the end of the year, when the first chamber enthusiasm into the LED lighting (semiconductor lighting) industry entrepreneurs found that: Although a lot of orders, but the profit is not imagined so big. The day before, the LED industry independent research institute of Engineering LED annual meeting held in Guangzhou. Price war through the whole industry chain over the past two years, LED industry overcapacity serious, frequent collapse of the tide. Earlier this year, with the opening of the LED lighting market, the whole industry chain are thriving. Despite the sharp increase in orders in the hands of the enterprise, but the intense price war almost runs through the whole industry chain downstream. Engaged in the production of upstream chip companies feel a significant price competition. It can be said that the chip manufacturers to bring the opportunity for the rapid development of the entire LED industry, as we continue to price competition. Wang Lianghai, vice president of a company's wry smile, in 2013 the domestic chip manufacturers to chip prices down to 20% to 30% in the past, this data is only Chinese enterprises to complete. "Wang Lianghai believes that the price war will continue for at least two years, but the price is basically stable, the future price of the space is not large, because the chip is unlikely to reduce costs. "Will enter a product performance competition era, the same price, see who the better product performance. For the middle reaches of the packaging manufacturers, although this year, the downstream LED lighting market quickly started to bring huge orders, but the price competition between peers is still very tragic. Downstream manufacturers do not have any loyalty at all, so the price of doing things grab customers everywhere. "A package manufacturer told the securities times reporter.

Downstream LED lighting applications equally fierce competition.

Due to the task of energy saving and emission reduction as well as overseas markets especially the European indoor lighting market, the domestic LED lighting production enterprises in engineering lighting and indoor lighting in the field of competition has reached a white hot at the same time, due to the low technology threshold, some lay enterprises have entered the market, new entrants tend to seize the market with low price strategy. In addition to the price war, the downstream field has also launched a dealer resources snatch war. His analysis, in addition to the upstream and downstream cooperation, self built channels, the more domestic lighting enterprises in the supply chain vertical integration, many upstream manufacturers (source device manufacturers) directly into the downstream channel.

The future market space is still very great although the LED enterprise executives said the industry almost no increase in interest income by common consent, for the coming year will be how to layout is indecisive, but they are almost unanimously believe that the future market space is still large, see who can get to the end, "left for the king".

Industry optimism from incandescent exit roadmap support. In the past few years, Japan and the European Union, the United States and other countries and regions have launched Chinese "incandescent exit roadmap", the provisions of incandescent lamp out of high energy consumption in the next several years, and encourages the use of alternative LED lamp with low pollution. This year happens to be the EU's incandescent exit roadmap last year, so the beginning of this year, companies engaged in LED lighting obviously felt orders from the European market.