Inefficient light sources are being phased out, leading to a new wave of growth in the LED lighting market
Published Time:
2021-08-04
With increasing emphasis on energy conservation and environmental protection, inefficient light sources will eventually be phased out. Encouraging the use of high-efficiency light sources has become a core part of lighting policies in many countries worldwide. Many countries have developed roadmaps for phasing out incandescent lamps, gradually prohibiting their production and sale.
With increasing emphasis on energy conservation and environmental protection, inefficient light sources will eventually be eliminated. Promoting the use of high-efficiency light sources has become a core part of the lighting policies in many countries around the world. Many countries have developed roadmaps for phasing out incandescent lamps, gradually prohibiting their production and sale.
In terms of green lighting products, there are currently two main types of light sources: compact fluorescent lamps and LED lighting. Compact fluorescent lamps have been developed for a longer time, with mature production technology, sufficient raw material supply, and relatively low prices. Therefore, they are still the mainstream products in the green lighting market.
LED lighting products have the characteristics of being more energy-efficient, environmentally friendly, and intelligent. In the long run, they represent the future direction of green lighting. With the advancement of LED technology and the release of large-scale production capacity, the prices of LED lighting products are also continuously declining, driving the rapid development of LED lighting.
According to data from the "LED Lighting Industry Market Investment Analysis Report" released by the Foresight Industry Research Institute, the global LED lighting industry reached $29.908 billion in 2015, a 24.84% increase compared to $23.957 billion in 2014, with an LED penetration rate of 27.2% by output value. In 2016, the global LED lighting industry is expected to reach $34.639 billion, with a penetration rate of 31.30% by output value.
Due to the "environmental protection storm", there were four price increases in the LED industry by the end of 2016. This led to price increases in lighting products ranging from 5% to 15%, with an average increase of 8%. Previously, price wars were fierce in the LED product market, with companies frequently sacrificing quality and profit to seize market share. This price increase exposed the shortcomings of many companies that intended to profit from price wars and, to some extent, promoted the industry's return to rational competition and healthy development.
With foreign companies withdrawing and industry consolidation intensifying, the concentration of the LED lighting industry is steadily increasing, and the industry is showing a trend of the strong surviving. Based on the financial reports for the first three quarters of 2016, the top ten manufacturers are expected to have an annual revenue exceeding 2 billion yuan, with 4-5 manufacturers entering the 5 billion yuan club. The combined revenue of the top ten manufacturers accounts for 8% of the total output value, an increase of 0.8 percentage points compared to 7.2% in 2015.
Faced with the trend of high industry concentration and declining prices of LED lighting products, domestic LED companies are actively seeking transformation, personalization, and differentiation. In 2016, the overall trend in the LED industry showed that chip companies are extending into semiconductor integrated circuits, midstream packaging companies are expanding into niche markets, and downstream lighting companies are shifting to education and media fields.
Looking back at the development of the LED lighting industry in 2016, the four price increases indicate that prices have reached their bottom line, price wars are nearing their end, and industry consolidation will further intensify; the industry is continuously concentrating, showing a trend of the strong surviving, and personalization and differentiation have become new paths to success; the future will see more capital operations to achieve corporate growth.
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