Analysis on the Present Situation and Future Prospect of China 's LED Industry

Release time：2011-04-01

           However, things are often the case - the last victory does not belong to the technology of openers, but in the business model of successful followers. For a new technology, how to cultivate the market is the most important.

        March 17, 2010, Toshiba Group announced the cessation of ordinary incandescent production, which means that as Toshiba's "printing machine" incandescent products through 120 years of glorious history, and finally out of the stage of history. Subsequently, the multinational giant announced a large-scale entry into China's LED lighting market.

        In fact, Toshiba's move is only a global LED lighting market surging a microcosm. Data show that in 2010 China's LED lighting industry output value will be more than 150 billion yuan. "2015, LED lighting market share in China will reach 20%, driving the industry scale of 500 billion yuan." The largest energy-saving lamp manufacturing enterprises - NVC Lighting Chairman Wu Changjiang said.

        Yes, for tens of thousands of large and small domestic lighting business, LED lighting seems to have become a dawn to meet the beautiful new world, especially when most of these lighting companies are also deep in the loss of the quagmire.    

        In January this year, located in Shenzhen Huaqiang North LED international procurement trading center put into operation, which is the first large-scale LED trading market, more than 60 LED display, lighting business presence. And more than a year ago, the relevant government departments to start the "ten city ten thousand" pilot project, that in 2010 in 10 to 20 cities to promote more than 300,000 LED municipal lighting.

        LED lighting how much fire? "Only the 2008 Beijing Olympic Games gave LED lighting industry has brought 5 billion business opportunities; Shanghai World Expo in LED lighting on the investment of up to 1 billion yuan; during the Guangzhou Asian Games, we provide more than 80 projects of the lighting program design , The supply of a variety of 1000 lighting products, the number of suppliers over one million sets. "Wu Changjiang introduced.

        For lighting companies, this is undoubtedly a huge gold rush field. July 24, the government announced the "three years out of 1 billion incandescent, while the same amount of energy-saving lamps," the timetable. "The government is vigorously promoting energy-efficient lighting, the benchmark will allow the industry to enter the shuffle period, industrial upgrading is imminent." Wu Changjiang said. And experts from the prediction is that if the promotion of the use of 1.2 billion energy-saving lamps in the country, a year can save the equivalent of the Three Gorges power plant annual power generation of 85.2 billion degrees, equivalent to 34 million tons of raw coal savings, reducing 91 million tons of carbon dioxide, Tons of sulfur dioxide emissions.

        Obviously, these data for the promotion of "low-carbon world" of the Chinese government, it seems meaningful. Because of this, the end of 2007, the Ministry of Finance and the National Development and Reform Commission issued a "efficient lighting products to promote financial subsidies to the Interim Measures" by the central government set up special funds to support the promotion of efficient lighting products. In 2008, China's first batch of financial subsidies to promote efficient lighting products launched more than 60 million energy-saving lamps, exceeding the original target 24% .2009 financial subsidies to promote the number of energy-saving lamps reached 120 million.

        And the domestic lighting companies rush is the corresponding, LED lighting multinational giants also began to catch the wind and move. OSRAM announced plans to set up LED chip production line in Huizhou; Japan's Nikko company also plans to set up factories in the mainland, expanding LED lighting product line; LG Enoch will invest over 100 million US dollars in Huizhou for led packaging, backlighting and lighting applications The Allegedly, the project is LG Inot global $ 1 billion investment in LED investment in the first phase of investment.

        "2010 is the first year of LED industry." Wu Changjiang said, "Since December last year, the Copenhagen World Climate Conference, the European countries have increased the degree of consumption of energy-saving environmental protection products, consumer subsidies, for example, Italy's subsidies The rate of up to 55%. That by virtue of sales documents, the Government in accordance with the price of 55% directly to the consumer subsidies. "According to its introduction, our government is also in the form of subsidies to support the use and promotion of energy-saving lamps, 150 million; and energy-saving lamps in the lighting industry in the growth rate of 20%, its own growth of 40%.

        It is reported that China's annual production of energy-saving lamps is about 3.5 billion, which means that 80% of the world's energy-saving lamps produced by China, of which about 60% of exports. "Earlier China's demand for energy-saving lamps can be said to be in short supply, as long as the production out, not afraid to sell."

        For tens of thousands of large and small domestic lighting business, LED lighting seems to have become a dawn to meet the beautiful new world, especially when most of these lighting companies are also deep in the loss of the quagmire.

        It is reported that in Huizhou, Guangdong, LED lighting companies have nearly 80, including NVC, Huizhou Career, TCL lighting, Yuanhui lighting, the United States Career, Germany OSRAM these ringing brand and perfect industrial chain are rooted here Is undoubtedly the most brutal competition in China's lighting business zone. At the same time, in recent years, Taiwan enterprises have come to the mainland to produce upstream products, such as the Taiwan plant Ding Yuan photoelectric investment in Wuhan to set up yuan-photoelectric to produce LED chip-based; 2009, another Taiwan plant Formosa Optoelectronics LED production Base also selected in Shandong Weihai settled.

        At present, the domestic LED lighting business a total of 3000-4000, a little size of the well-known enterprises have more than 50 In fact, the domestic lighting industry is still in the state of princes separatist, NVC lighting, Philips, Foshan, lighting and other sales of the top 10 domestic market enterprises, the share of its share, but accounted for 13% of the overall plate. The national standard, LED lighting is still fragmented. For example, the Pearl River Delta region has more than 2,000 enterprises, but really able to do product stability, according to the order of production enterprises even half did not.

        Worthy of concern is that the current domestic LED lighting industry, although the competition has been white, but the real leading enterprises did not appear. Those lighting companies are mostly private enterprises, the annual output value of more than 2 billion companies only a handful of.

Capital scale is clearly one of the bottlenecks of lighting companies bigger. "We start the business when the money is the biggest problem, do nothing can do, the bank does not borrow." Wu Changjiang said that for private enterprises, this will directly affect the company's research and development speed and long-term layout. There is almost no lighting business market share of more than 2%, while for the people, the most realistic choice is to prefer a few dollars with an incandescent lamp, do not want to put on a hundred dollars of LED lights, the price problem is also limited A large area of LED commercial.

        Obviously, LED lighting market prospects, but for local enterprises is challenging, in addition to the core technology, how to cultivate the market, consumer acceptance, price, etc., these are LED lighting products business problems.

        In addition, in the entire LED industry chain, the chip and other upstream areas accounted for 70% of the profits. This means that more than 90% of our leading companies are crowded in the downstream 30% of the profit range of desperate struggle. Domestic enterprises in the chip R & D and manufacturing and foreign giants gap. Second, the overall level of the industry is low, mainly concentrated in the low profit margins downstream packaging, assembly links, the lack of their own standards and testing system. Third, the blind investment phenomenon is serious, prone to a vicious price war. These are the domestic LED lighting business short board.

        To this end, Chinese enterprises also fell into the main rely on exports, product added value is not high, it is difficult to accumulate the cycle of technology, and foreign giants are local enterprises formed a "core technology encirclement." The

"For a long time, China's lighting industry is in a scattered and messy pattern. Small enterprises, large enterprises, production intensive and large scale is very low.Compared with foreign enterprises, China's lighting industry, small scale, Quality does not come, more importantly, the enterprise's technology is difficult to improve, anti-risk ability is very low. "Wu Changjiang said. Therefore, the LED industry to obtain long-term development, must be in-depth industry consolidation and upgrading.

        Lighting giants are actively carrying out the "enclosure movement" to accelerate capacity expansion, it is fancy the lighting industry is about to reshuffle the opportunity. However, for domestic manufacturers, the most important thing is clearly how to break through the foreign giants of technology monopoly and independent innovation. "