Seven Trends in lighting industry in 2016

In 2015, although the demand for LED lighting continued to rise and a large number of traditional lighting applications were replaced, the oversupply and extremely irregular commercial competition in the industry caused the unit price of LED lamps to decline by 30- 50, manufacturers face losses and exit the market. For 2016, I think the development direction of the industry is as follows: 1. The future growth of LED industry will slow down. Due to the oversupply of LED industry, the average price has fallen sharply. With the continuous reduction of industry costs and the rationality of industry heat, it is expected that the industry growth rate will stabilize and slow down. 2. LED device prices and product declines. In 2015, wafer and package prices and product prices fell in a diving way. The irregular competition in market prices LED many LED manufacturers to face losses. It can be expected that more and more manufacturers will withdraw from the market in the future. 3. Chinese LED manufacturers launch domestic and overseas mergers and acquisitions and transformation. Chinese listed companies rely on A- share valuation dividends to launch overseas mergers and acquisitions through stock market fundraising and government funding support. In addition, more and more LED manufacturers have begun to seek transformation, and some Chinese LED manufacturers have also begun to get involved in other fields through mergers and acquisitions, hoping to get rid of the Red Sea market of price competition. 4. The collapse of LED enterprises reappears. Due to the continuous decline in prices in 2015 and the continuous deterioration of industry competition, many small and medium-sized LED enterprises are facing great loss pressure and entering a vicious circle of cash flow rupture. In 2016, the industry will reproduce the tide of small business failures; 5. Agricultural lighting, health lighting and other fields are growing rapidly. Due to the fierce price competition of white LED, LED manufacturers hope to find some new special applications in order to increase profits. With the continuous maturity of red light technology, agricultural lighting, health lighting and other fields will usher in rapid development opportunities; 6. Intelligent lighting has bright prospects but the process is tortuous. At present, the additional functions of intelligent lighting are mostly based on remote control, color and color temperature changes, but most consumers seem unwilling to pay extra premium for these functions, therefore, it is difficult for intelligent lighting to achieve rapid development in a short time; 7. Optical communication will receive more and more attention from manufacturers. Due to the huge bandwidth advantage and huge market space of visible light communication, it is expected that the development of optical communication will receive more and more attention. However, due to the large investment, the technology of chips and devices still has certain difficulties, the possibility of an immediate outbreak is still relatively small.