LED lighting industry market signs of recovery

The LED lighting industry has been picking up in recent years. According to statistics, in the first half of 2014, the sales growth of LED lighting products in the dealer channel in the domestic market was about 27.8%. In addition, the growth of online sales of LED lighting products is more apparent than that of physical channels, and the electricity supplier market has doubled in two years.

Ding Wenwu, director of the Electronic Information Department of the Ministry of Industry and Information Technology, predicted that the domestic LED output value will continue to grow at a high rate of 20% to 30% next year. The growth share will mainly occur in public areas such as civil and road lighting. In addition, Lu Wenbin, deputy director of the Department of Resource Conservation and Environmental Protection of the National Development and Reform Commission, predicts that the 2015 LED lighting market share of 20% will be achieved ahead of schedule.

Market has picked up

On November 10-11, 2014, the Global Efficient Lighting Forum was held in Beijing. The conference was initiated and hosted by the United Nations Environment Program Agency (UNEP) and the Global Center for Efficient Lighting Technology (GELC), and was organized by the National Electric Light Source Quality Supervision and Inspection Center (Beijing) (NLTC). Representatives from more than 80 countries attended the forum.

The United Nations Environmental Planning Agency (UNEP) has studied the lighting market in more than 150 countries around the world and pointed out that lighting power currently accounts for more than 15% of global electricity consumption and emits 5% of the world's carbon dioxide emissions; while the application of advanced lighting technologies represented by LEDs can be Reducing CO2 emissions from more than half of the world's lighting electricity consumption is equivalent to the total emissions in Australia.

In 2011, China issued the "China's roadmap for phase-out of incandescent lamps," and in October this year passed a ban on the export and sale of incandescent lamps above 60W. Promoting energy-efficient lighting products is not only conducive to the sustainable use of energy and environmental protection, but also contributes to the formation of new economic growth points. As the world's largest producer, consumer, and exporter of lighting products, China's LED industry has grown rapidly. In 2013, the market scale exceeded RMB260 billion.

Ding Wenwu said that the output value of China's LED lighting industry is growing at a rate of around 30%, and the industrial chain is basically complete. However, there are also certain problems. Apart from the gap between the overall technology and the international advanced level, the quality and safety performance of the luminaires are the main problems. He believes that if further cooperation with international companies and research and development institutions to solve the quality problems, in the next 3 to 5 years, the market price of LED lighting products will fall within the acceptable range of Chinese people.

According to Jan Denneman, president of the Global Lighting Association, the transition from incandescent lamps to LED lighting, like the conversion of analog signals to digital signals, heralds a revolution in lighting energy efficiency. He predicts that by 2030, the global LED lighting will be realized.

Listed companies show turning point

Look at the business situation in the first three quarters of this year. At present, the leading enterprises have sufficient orders and equipment are in full production, and the industry has ushered in the turning point of the economy.

The performance of LED chip leader Sanan Optoelectronics (600703) continued to improve and its quality continued to increase. The company achieved operating income of 3.478 billion yuan from January to September 2014, an increase of 32.16% year-on-year. Sanan Optoelectronics stated that the increase in operating revenue was mainly due to the further release of the company's production capacity and the increase in sales volume. With the gradual implementation of a variety of incandescent alternatives, CREE, Philips, Osram continue to promote the introduction of cheap products, the industry boom will continue into the next two or three years. The LED chip industry has high barriers to entry and economies of scale. Sanan Optoelectronics has the advantages of integration of technology, scale, and industrial chain and is in the leading position in the industry. Another chip company, Huacan Optoelectronics, has experienced a net profit increase of more than 7 times in the first three quarters of this year.