The next five years, the LED industry will be a big reshuffle

2014, China and the United States PV market will remain the main source of incremental global PV market. Domestic distributed photovoltaic power generation has a larger space for development. 2013 is an exciting year, due to the rapid development of the lighting industry, driven by the middle and lower reaches of the production capacity has been fully exploited, but also to allow overcapacity has slowed.

Domestic distributed photovoltaic power generation has a larger space for development

2013 is an exciting year, due to the rapid development of the lighting industry, driven by the middle and lower reaches of the production capacity has been fully exploited, but also to allow overcapacity has slowed. 2013 is also a very anxious year for the industry, although a lot of orders, revenue growth, but because of the price war, resulting in lower gross profit margins.

With the development of LED technology in China, the price performance ratio of LED lighting products is getting close to or even lower than that of traditional lighting. 2013 was considered a lot of LED industry is the best year, product sales all the way to go, but the product homogeneity, price war, low margin and other issues also plagued the development of the industry as a whole. High engineering LED Industry Research Institute (GLII) predicts that in 2013 China's LED industry output value will reach 263 billion 800 million yuan, an increase of 28%. The next five years, LED applications in addition to indoor and outdoor lighting, automotive lighting, special lighting, other areas will enter a period of slow growth.

The next five years, the LED industry will be a big reshuffle

The comprehensive development of the industry chain starting from 2009 the Ministry of science and technology, ten city lights ", the domestic LED industry ushered in the investment boom, all capital swarmed in, especially in the upper reaches of sapphire and epitaxial chip excessive investment is more serious. The quality and cost of the domestic chip rapid increase, which will also lead to a sharp drop in the price of imported chips, resulting in a lot of chip factories in Taiwan can not exist independently, we must rely on mainland China production, sales in the mainland. In the packaging field, Chinese LED packaging industry already has a considerable scale of economy, become one of the main LED packaging production base in the world, the vast majority of domestic packaging devices occupy the domestic market, imports accounted for the proportion of Chinese package market decreased rapidly. The future of imported device brands will not exceed eight, the domestic market share of domestic devices, because the domestic price is much lower.

The next five years, the domestic LED industry reshuffle after the first several years of development, has made considerable progress in terms of scale, technology, products, but also faces many problems, LED excess capacity, a large number of enterprises, product performance level is uneven, the price war intensified, many enterprises do not have a clear enterprise and product positioning. The next five years, the LED industry will be a big reshuffle, whether it is a listed company, or state-owned enterprises, private enterprises, the next five years, will face a very grim situation. Especially in the next three years, the LED industry big fish eat small fish, fast fish eats the slow, will be the industry norm, because the market is so big, this is the inevitable result of market regulation. Non-listed company may be basically eliminated or integrated.

Industry outlook:

In the context of income doubling plan, China will enter a stage of consumption upgrade. 2014 LED industry will begin to reshuffle, the probability of future business turnover in the tens of millions of below the probability of survival. 2014, China and the United States PV market will remain the main source of incremental global PV market.