LED era is coming, lighting industry accelerates concentration

In the era of incandescent lamps and fluorescent lamps, due to the need for manufacturers to ensure the stability and durability of light sources through the design and manufacture of products, large European and American factories have accumulated technology and brands and channels accumulated in history, occupying most of the market, it has formed lighting giants such as Philips, GE and Osram. Lighting has always been a rigid demand, and it was not until Edison invented the electric lamp that an industry was formed. Electric lamp products have developed from tungsten filament incandescent lamps to energy-saving fluorescent lamps, and now to LED lamps. The lighting industry has also developed from zero to a large market of 100 billion US dollars. In the era of incandescent lamps and fluorescent lamps, due to the need for manufacturers to ensure the stability and durability of light sources through the design and manufacture of products, large European and American factories have accumulated technology and brands and channels accumulated in history, occupying most of the market, it has formed lighting giants such as Philips, GE and Osram. Entering the LED lamp era, with the bonus of engineers and the spare support of the government, China has gradually kept up with the technology and surpassed developed countries such as Europe, America and Japan. The quality of products is no worse than that of Europe and America, however, the cost is lower and the service is better, so that the entire LED industry chain has basically moved to China from chips, packaging to light sources. Under the specialized division of labor system, the light source manufacturing has become a simple assembly work. The European and American light source manufacturers have lost their jobs and have withdrawn from the general lighting field. In December 2016, Philips officially divested its lighting business. In August 2016, GE Lighting decided to terminate its business in Asia. In February 2017, Osram sold its lighting business to a Chinese consortium. The domestic lighting market is huge. According to the data of high-tech LED, China's LED general lighting market reached 204 billion yuan in 2016, and the penetration rate of LED was 44. At present, the use cost of LED lamps is almost the same as that of traditional bulbs. It is estimated that in 2020, the penetration rate of LED lighting in China reaches 60- 70, LED general lighting will maintain double-digit growth in the next few years. The competition pattern in the lighting industry is scattered. At present, the market share of the industry leader is only about 3. The main reason is that in the era of traditional light sources, light sources are monopolized by Philips, GE and Osram. lamp enterprises have low added value and are difficult to form competitiveness. China's mastery of LED technology has broken the original competition pattern, greatly lowering the technical threshold of light sources, and the right to speak in the industrial chain has shifted to lamp manufacturers closer to terminals, lamp manufacturers have the opportunity to increase market share through product design, channel management and brand marketing. On the other hand, with the improvement of per capita national income, Chinese people's requirements for quality of life are constantly improving. When choosing lamps and lanterns, brand and product design are more important, and the living space of fake products is compressed, with the rising cost of raw materials and the improvement of environmental protection requirements, many small factories have also been forced to withdraw from the market. In fact, since the penetration rate of LED lighting increased rapidly in 2012, the market share of Echelon lighting enterprises has increased steadily. With the withdrawal of large European and American factories and small fake factories, this trend is expected to accelerate in the future. After years of development, the lighting market in the United States has formed several major lighting factories with tens of billions of revenues such as Cooper, Habel and liangtong lighting. Entering the LED era, under a more favorable competition pattern, I believe that China will soon have one or even several leading manufacturers comparable to international giants.