Expert Analysis LED lighting industry development status

In recent years, the lighting industry in the stock market and high growth phase incremental market coexist. From 2012, after the domestic application of LED lighting breakthrough in recent years has been the rapid development, according to statistics in 2014 in the domestic lighting output of about 550 billion yuan, exports reached $ 42 billion. LED lighting share of the rapid increase, accounting for 4 percent of GDP, over 200 billion yuan. Due to the development of LED lighting, a considerable number of foreign enterprises to enter, the number of domestic lighting enterprises have more than more than 20,000.

Expert Analysis LED lighting industry development status

In the international market, the traditional lighting of the times, large international companies rely on electric light source technology development and growth, to the era of LED lighting, LED development are due to the pace of change is too fast to generate operational difficulties, gradually underdogs in the competition, while domestic many have a cost-effective, superior product quality enterprises to enter the international market and increasingly occupy the market dominance. In response to the new situation, Philips, osram and other foreign companies began to sell lighting business spin-off, and instead focus more profitable segments, it is worth our reflection.

In terms of integration of acquisitions, industry consolidation mergers and acquisitions accelerated. Associated with the lighting in listed companies, there are more than 40 companies to participate in the reorganization and acquisition. At present, some listed companies on the LED lighting market is expected to be relatively optimistic, but once you do not see high growth prospects for two or three years, then the lighting market will gradually lose interest and even some listed companies has formally announced its withdrawal from the lighting industry.

In lighting engineering to architectural design market, for example, the design task this year will be down 30%. For example, a company has more than 1,000 employees of the institute designer, this year almost 300 designers is to take the basic wage to live. This situation reflected in the lighting market lag 1--2 years. In addition, because there are many problems in the construction of the EMC model, the future government will carry out urban infrastructure construction is expected to be more than 1 trillion by PPP mode, this is an opportunity points.

In LED lighting products, although the first two years LED lighting products have begun to enter the place, but there are still several problems. First, the product price fluctuations. In the upstream as well as a variety of supporting material price fluctuations driven lower price volatility, and even large companies no law to balance. Second, cohabitation quality product. Different quality of traditional products the difference in the age 10-20%, while the LED era is the difference several times. Three market supervision is missing. LED products for consumers can’t judge, but the current market supervision is to be improved.

In terms of market expectations, due to the thirty years of reform and opening up, which contains a lot of waiting for the building to replace the traditional lighting products, coupled with the growth of the market itself, making the industry growth rate higher than macroeconomic growth, the next three to five years into the corporate sprint a critical stage of development. Under good market expectations, the major manufacturers to increase investment to expand scale, mustering strength to punch on the market, but this is only a short-term phenomenon.

Under normal circumstances, a mature industry output value of the top ten companies together can account for 70%, and now before the lighting industry add up to ten less than 10%. Even after thirty years of rapid growth have not, after three to five years more impossible. In fact, I want a simple fabrication reach 10 billion, which is almost impossible to achieve. So what's new practice?

In fact, LED as a new lighting products, many master electrician don’t know how to maintain it. In this regard, the current terminal market has been the emergence of specialized maintenance organizations, as owners of the service provider, during the warranty period of fixtures for maintenance, the warranty period is related to maintenance costs charged to the service rather than the product to be profitable. In "after the Expo Economy" project transformation, for example, the government in PPP mode operations entrusted to the specialized agencies, service agencies conceited undertake electricity, and spent 12 millionRMB on the venues lighting transformation, through light show, organized exhibition and trade events, emotional charge expression and other service charges, its profit is quite substantial.

In fact, lighting market not only have lighting products. Currently LED function is not yet fully reflected, it can carry a lot of things, which is not in the traditional lighting times. In the future, the entire lighting industry is very big, the premise is you have to live well!

About ENELTEC

ENELTEC care so much about the brand enfluences and also the satisfactory experience of our customers. So we always put alot of efforts on the products quality and after sales service. We emphasis on applying for the necessary certificates for our target market , controlling every step of the productions , testing before delivery and tracking each order after delivery.
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