LED Lighting Industry Market Research and Investment Prospect Forecast Report 2021-2027

Analysis of Opportunities and Challenges Faced by LED Lighting Industry

1. Industry development trend

At present, the world has initially formed an industrial pattern centered on the three major regions of North America, Europe and Asia, and each has strong advantages in different fields. The developed economies with LED lighting industry chain manufacturing capabilities represented by the United States, Japan, and Germany have an advantage in the high-end market, with advanced equipment levels and a relatively complete industrial chain system, but they are trapped by labor, logistics, and supply chain costs. Higher restrictions have not formed economies of scale. In the emerging market countries in Asia, India, Vietnam and other countries as the representative of the late development of LED lighting industry, although they have a certain product manufacturing capacity, but its industrial chain is not perfect, and also face the country's political and economic situation is complex, social efficiency is low and other issues, short-term more difficult to form competitiveness.

As the world factory of the global LED lighting industry, China is the world's largest producer and exporter of LED lighting products. It has the manufacturing capacity of the entire industrial chain of the LED lighting industry, and has strong competitiveness in the production, research and development, and sales of LED lighting products.

Related Report: Beijing Puhua Information Consulting Co., Ltd. "2021-2027 LED Lighting Industry Market Research and Investment Prospect Forecast Report"

Source: PwC

In addition, the rapid expansion of the production capacity of the LED lighting industry in recent years has resulted in low industry concentration and fierce market competition. Xinnuofei, Osram and other international first-line brands, as well as domestic first-line brands such as Opp Lighting, with their strong brand, channel, management and technology research and development advantages, occupy most of the market share of high-end products. Some emerging LED lighting companies with their own technical characteristics and product development capabilities have also seized the industry development opportunities and grown rapidly, successfully cutting into the mid-to-high-end product segment market and occupying a certain market share. Many small and medium-sized LED lighting manufacturers, due to their product technology, quality, brand and channel limitations, mainly in the low-end market price competition.

2. Industry characteristics

(1) Periodicity

With the gradual maturity of LED lighting technology, and the world's attention to energy conservation and environmental protection issues and policy guidance, the LED lighting industry has ushered in a huge development opportunity, so the cyclical characteristics are not obvious.

(2) Regional

At present, the global LED lighting industry has initially formed an industrial distribution and competition pattern centered on Asia, Europe and North America. China is an important production base and export base of LED lighting products in the world, and Asia, Europe and North America are the most important consumer markets in the world.

(3) Seasonality

LED lighting products are widely used in daily life, business, production, engineering, transportation, and other fields have long-term and stable application needs, so the overall market seasonal characteristics are not obvious. However, LED commercial lighting products in the market segment are mainly for commercial customers. Affected by traditional consumption habits, holidays are often the peak sales season. During the "May Day", "November", "Double Eleven" and "Lunar New Year" in China, and during the "Christmas" abroad, brand customers will increase the promotion and sales of commercial lighting products. Therefore, the second half of the year is the peak sales season of the commercial lighting industry, sales were relatively flat in the first half after the New Year holidays. Therefore, the commercial lighting industry has certain seasonal characteristics.

3. Trends and reasons for changes in industry profit levels

The downstream market of LED lighting industry has a wide range of applications and strong market demand. LED light sources are facing fierce market competition, and the profitability of products is low. General lighting is the largest application market for LED lighting products. The development of its subdivision areas is quite different. The home lighting field is gradually entering a mature period, and the market competition pattern is basically formed. At the same time, it is affected by factors such as rising labor costs and intensified product competition. The profit space has been squeezed to a certain extent. Market segments such as commercial lighting and industrial lighting are in a stage of rapid development. With the continuous enrichment of personalized and customized needs of commercial lighting customers, as well as the improvement of requirements for safety, comfort and intelligence of industrial lighting scenes, market segments such as commercial lighting and industrial lighting will continue to develop rapidly, and differentiated and personalized products often have higher product added value and greater profit space.

4. Analysis of opportunities and challenges facing the industry

(1) The opportunities ahead

A, the world to promote the popularity of LED lighting products and national policy support

In order to improve energy efficiency, protect the environment, and respond to global climate change, the governments of developed countries such as the United States, the European Union, and Japan have successively introduced policies to ban traditional incandescent lamps and support the development of the LED lighting industry.

B, LED lighting technology continues to develop, prices continue to decline

The progress of technology determines the rapid growth of LED lighting industry, LED lighting products to replace energy-saving lamps is the trend of lighting industry development. The progress of LED lighting technology is mainly reflected in two aspects: one is the continuous improvement of light efficiency. According to the data of the National Semiconductor Lighting Engineering Research and Development and Industry Alliance, in 2018, the luminous efficiency of industrialized high-power white LED exceeded 180lm/W, the luminous efficiency of LED indoor lamps exceeded 100lm/W, and the luminous efficiency of outdoor lamps exceeded 130lm/W. Second, the cost price continues to decline. Affected by upstream chip technology improvement, capacity growth and lamp production process optimization, the cost of main raw materials has gradually decreased, reducing the production cost of LED lamps. According to statistics, in terms of the price of an LED bulb equivalent to 60 watts, the price was about 45-50 US dollars per bulb in January 2011, but by July 2018, the price had dropped to less than 10 US dollars per bulb, and further dropped to 7 US dollars per bulb in May 2019. The price of LED lighting products has gradually approached the price of traditional energy-saving lamps.

C. The application field of LED lighting products continues to expand.

With the rapid development of LED lighting technology, the stability, service life, intelligence, indication, light efficiency and other performance indicators of LED lighting products are becoming more and more mature to meet the market demand. LED lighting products have not only met the general lighting needs, but also derived from various application fields according to different application scenarios, and the market scope continues to expand and extend.

Before the 1990 s, the LED lighting industry was in the early stage of development. The product color system was single and the price was high. The application market was mainly driven by the demand for signal lights and indicator lights. Since the middle and late 1990 s, the LED lighting industry has entered a stage of rapid development. The development of blue and green light technology and the decline of product prices have led to the rapid promotion of LED lighting in the commercial field and became the main driving force for the development of LED lighting market at that time; with the continuous maturity of technology and the further reduction of prices, LED lighting products have gradually penetrated in many fields such as home lighting and industrial lighting in recent years, forming a huge potential application market. In the future, with the development of landscape lighting, automotive lighting and other sub-sectors, LED lighting market demand will continue to maintain rapid growth.

D, China has a complete LED lighting industry chain, the industry has entered a mature period of development.

China's LED lighting industry started in the late 1960 s. After nearly 50 years of development, China's LED lighting industry has made remarkable achievements and has formed a complete industrial chain including the production of LED epitaxial wafers, the preparation and packaging of LED chips and the application of LED products.

At the same time, China attaches great importance to the research and development of LED lighting technology, and has successively launched green lighting projects and semiconductor lighting projects. It has successively supported the research and development and industrialization projects of LED lighting technology in the fields of ten key energy-saving projects, high-tech industrialization demonstration projects, special projects for enterprise technology upgrading and structural adjustment, and new materials for 863 planning, thus having a good research and development foundation, And has certain advantages in downstream LED lighting integration applications.

E, China's industry standards continue to improve, standardized development has become the direction

In recent years, under the guidance of the National Development and Reform Commission, the National Standards Commission, the Ministry of Science and Technology, the Ministry of Industry and Information Technology and other government departments, and under the promotion of relevant industry organizations and institutions, China's LED lighting standard testing and certification has made phased progress. According to the statistics of the national standard information public service platform, as of May 31, 2021, China has issued 187 current national standards, 174 industry standards and 247 local standards related to LED lighting, and actively carried out the pilot work of group standards and actively participated in the standardization work of ISO/TC274 of international organizations.

In addition, the application range of LED lighting products is becoming more and more extensive, and its downstream applications such as outdoor venues, stadiums, etc. have gradually established relevant management standards. In addition, the Ministry of Railways, the Ministry of Transport, and the Ministry of Public Security have also established relevant standards for LED lighting applications. The establishment of the above industry standards and norms will help promote the orderly and standardized development of the LED lighting industry.

(2) Challenges faced

A, the core technology is relatively weak

At present, a large part of my country's LED lighting products are used for export, and the markets of developed countries/regions in Europe and the United States are different from the domestic market. They have strict access thresholds and developed trust management mechanisms, and they have adopted high-tech regulations and high safety standards. Set market access conditions for LED lighting products. However, the core technologies of China's LED lighting enterprises in the fields of high-end materials, optical design, power management, heat dissipation technology and so on have been in a relatively weak state for a long time. LED lighting enterprises have no competitive advantage in technology, which has become a major obstacle for China's LED lighting products to be exported to Europe, America and other developed countries/regions.

B. Weak brand influence of domestic LED lighting enterprises

From the perspective of the development of various regions in the world, the current global LED lighting industry has formed a three-legged industrial distribution and competition pattern dominated by the three major regions of the United States, Asia, and Europe, and presents Japan, the United States, and Germany as the industry leader. Taiwan and South Korea followed closely, and countries/regions such as mainland China and Malaysia actively followed up the echelon distribution. Internationally, Xinnuofei, Osram and other international giants occupy a large market share in the high-end product market, each with its own characteristics in terms of products and markets, forming a complete industrial chain of LED lighting, and taking advantage of its innovative advantages in the field of new products and new technologies, mainly engaged in the production of high-value-added products, master high-end materials, optical design, power management, heat dissipation technology and other key core technologies. The domestic LED lighting enterprise brand to enhance the value-added ability is weak, or the pursuit of sales scale and ignore the brand building, with international competitiveness of the brand enterprises less.

C, the phenomenon of homogenization competition is serious

Product homogenization has always been one of the problems perplexing LED lighting enterprises in China. As the LED lighting market is in the stage of rapid growth, some small and medium-sized enterprises in the industry invest less in the research and development of products and technologies, mainly by seizing the market at relatively low prices, resulting in a certain degree of disorderly competition and product homogenization in the LED lighting industry. These problems not only affect the profitability of LED lighting enterprises, more conducive to the health and sustainable development of the LED lighting industry.

Original title: "2021-2027 LED lighting industry market research and investment prospects forecast report"