LED industry enters a new stage of development

In recent years, LEDs have been widely promoted and applied, and the development of the LED industry has gradually improved. With the implementation of energy saving and environmental protection policies, the LED lighting market capacity is expected to usher in another expansion, pushing the LED industry to a new stage of development, and the prospects continue to improve.

　　 The scale of production and sales of the LED industry continues to grow, and the overall operating efficiency is getting better

　　 According to the 'Market Outlook and Investment Analysis Report of China's LED Industry' by the Qianzhan Industry Research Institute, as of the end of 2016, there were 883 enterprises above designated size in my country's LED industry, a slight increase from 879 in 2015; sales revenue was 4,576.56 100 million yuan, product sales profit 40.162 billion yuan, total assets reached 430.73 billion yuan, various economic indicators have increased, reflecting better overall operating efficiency.

　　 In addition, the sales growth rate of the LED industry dropped to 15.38% last year, reflecting the slowdown in the expansion of the industry’s market scale; the capital accumulation rate and the growth rate of total assets also declined compared with the previous year, which were 11.41% and 14.68%, respectively. However, it is still at a relatively high level, indicating that the industry needs sufficient resource reserves for later development, has good capital growth and preservation, and has strong sustainable development capabilities.

　　 2013-2016 China's LED industry development capability analysis (unit: %)

　　 The overall operating efficiency of LED companies is improving, which stems from the steady growth of the LED industry’s production and sales scale. Data show that from 2010 to 2016, the total industrial output value of China's LED industry has shown a rapid year-on-year growth trend. In 2016, the total industrial output value was 461.196 billion yuan, a year-on-year increase of 15.63%.

　　 2010-2016 China’s LED industry’s total industrial output value trend (unit: 100 million yuan, %)

　　 In terms of demand, from 2010 to 2016, the sales revenue of China's LED industry showed a year-on-year growth trend, of which sales revenue was 457.656 billion yuan in 2016, a year-on-year increase of 15.38%.

　　 2010-2016 China’s LED industry sales revenue and growth rate trend chart (unit: 100 million yuan, %)

　　 According to the above comparison, the production and sales rate of China's LED industry showed a slight fluctuation trend from 2010 to 2016, and the overall sales rate remained between 99%-101%, and the production and sales rate in 2016 was 100.29%. On the whole, the industry's production and sales are relatively stable.

　　 LED industry development trend analysis

　　 According to the data, the LED industry is entering a stage of steady growth and showing different development trends.

　　 One, lighting has become an important driving force for industrial development. In 2016, the main growth driver of the global LED industry scale growth was lighting applications, which accounted for 50%. The advancement of LED lighting technology and the decline in prices have made it a reality for LEDs to enter the field of lighting. In 2016, the global LED lighting penetration rate reached 32.7%, and it gradually entered general household lighting from outdoor lighting and commercial lighting, becoming the main driving force for the rapid growth of the LED industry.

　　 Second, policy support has become an important guarantee for promoting industrial growth. The global ban on incandescent lamps has entered a critical period. From the perspective of time nodes, the major countries and regions that will eliminate incandescent lamps in 2013 will enter the window period of 75W, 60W, and 40W elimination; from the perspective of coverage, the United States, the United Kingdom, Australia, the European Union, Japan, South Korea, China and other countries and regions Both have entered the period of prohibition and elimination of incandescent lamps, which greatly stimulated the replacement and use of new light sources in 2014 and accelerated the promotion of LED lighting.

　　 The United States, the European Union, South Korea, Japan, China, etc. have all put forward a schedule for the replacement of LED lighting products. South Korea proposed to ensure that LED lighting products enter 30% of the general lighting market in 2015; Japan proposed a 50% replacement rate for LED lighting in 2015 and a 100% replacement rate for LED lighting products in 2020. The gradual revision and improvement of LED certification and standards have brought LED lighting into a critical period of development in 2014, and policy promotion has become a favorable guarantee for the development of the LED industry.

　　 Third, price drops and application market segmentation have become development trends. In 2014, the LED bulbs of international lighting manufacturer Philips dropped from US$30 to US$10-12, and Osram seized the market with a price of less than US$10. Because the luminous efficiency is higher than that of energy-saving lamps, the price is lower than that of energy-saving lamps, and the life span is longer than that of energy-saving lamps, LED lighting products have become a powerful substitute for energy-saving lamps. Faced with the trend of falling prices, global LED companies are looking for subdivisions to make efforts. Key enterprises are moving towards the high end of the value chain, strengthening innovative research and development in sub-fields such as automotive lighting, plant lighting, and smart lighting, and providing alternative lighting solutions for different application environments.