The next five years LED continued hot market

Introduction: the price war and channel construction and reducing government subsidies lead to low gross profit in the short term is hard to change, many enterprises are facing the dilemma of income does not increase profits. Margins continue to accelerate the industry reshuffle.

LED industry continued the fiery situation in the second half of last year, the market continued to warm, the output value of the first half of this year compared to last year will grow exponentially. But behind the fiery industry, but the company is not cold. The price war and channel construction and reducing government subsidies lead to low gross profit in the short term is hard to change, many enterprises are facing the dilemma of income does not increase profits. Margins continue to accelerate the industry reshuffle. A director of the Institute in an interview with reporters, said: the industry price war will continue for some time, the next five years, the majority of enterprises in the turnover below the level of tens of millions, the probability of survival is not.

LED continued hot market

The next five years LED continued hot market

From the first quarter of this year, LED lighting industry started from last year's praised situation, market demand continues to heat up. Until now, the domestic LED lighting industry leading enterprises also revealed to reporters, orders after two months. Yesterday, vice president of enterprises in an interview with reporters, said: the current business order is still very good. From traditional lighting to LED lighting companies are introduced: estimated in the second half, the company's LED sales grew by more than 30%. Downstream demand also contributed to the increase in the upstream and downstream enterprises to improve the utilization of capacity. Although the industry has not yet out of excess capacity, but the upstream chip company vice president of a company that: price war from 2012 to start this year, basically stable. Chip companies will not rise, but there will not be much room for price cuts. Soon to enter the era of product performance competition. In the case of the industry to pick up, LED lighting industry output value is also further improved.

According to a report released by the Institute, the fourth quarter of last year, the overall output value of the LED industry will grow by about 20%, while the annual output of LED indoor lighting will grow by an increase of 110%. Expected next year, output growth will remain at around 60%.

Margin reduction

Accelerated shuffle

Despite the rapid development of the LED lighting market, but the whole industry is not in the interests of the situation is not conducive to income. The performance of several large LED listed companies in China is particularly evident, three quarterly bulletin shows that the company's revenue growth in the third quarter was close to 50%, but net profit of $33 million, down nearly 29%. At the same time, the impact of the industry as a whole there is still a fierce price war. According to a report by the Institute, 2010 to three years, LED indoor lighting products prices fell by an average annual rate of more than 20%; some products, the first half of this year, prices fell by more than 30% light.