LED lighting penetration rate over 80 in the next 5 years
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Pan Wenbo said that there are currently more than 10,000 LED companies in China. In the next 5 to 8 years, enterprises from 30 to 40 or even 50 will be eliminated from this market, and the industry concentration will be higher and higher.
At the same time, a number of outstanding companies will grow in the market. Pan Wenbo predicts that in the next 5 to 8 years, there will be LED lighting companies with annual revenues exceeding 1 billion yuan, 2 billion yuan, and even more than 10 billion yuan.
The current penetration rate of LED lighting is only 20~30. Pan Wenbo believes that the penetration rate of LED lighting may exceed 80 in the next five years, and the development space is very large. The upstream and downstream output value of LED lighting in mainland China last year was 350 billion to 380 billion yuan. This year will reach 410 billion to 450 billion yuan, and will exceed 100 billion yuan in the next five years.
In Pan Wenbo's view, companies with brand, channel, technology and sales network advantages will become stronger and stronger. Of course, there will be companies that have been eliminated. In the next five years, the domestic LED lighting industry will maintain a growth rate of 22~25 every year, and 80 traditional lighting will be replaced by LED lighting.
Not every business can enjoy the fruits of market maturity.
This year and next year is critical. The market is in a rapid growth period. If you do not seize the market and do not form strategic cooperation with customers, there will be no chance. Therefore, Yiguang Lighting adopted a positive expansion strategy this year. Cao Mingda, Director of China Business Division of Yiguang Lighting (China) Co., Ltd., told this reporter.
Yiguang is the leader in Taiwan's LED packaging industry. Cao Mingda revealed that this year's LED packaging factories in Zhongshan, Suzhou and Taipei are expanding production, and orders are now larger than production.
In the past, Yiguang's price/performance ratio was not as good as that of some small domestic enterprises. However, since the fourth quarter of last year, Yiguang's small and medium-sized power LED products have received large orders and seized orders from some domestic LED packaging manufacturers. Cao Mingda said that because the price of LED packaging is falling, some small factories can't support it.
Yiguang is still building its own upstream and downstream industry chain. Cao Mingda said that in the upstream chip field, Yiguang is the second largest shareholder of Jingdian and the largest shareholder of Taigu in Taiwan. In terms of downstream brands and channels, Everlight acquired a 50-year-old light factory WOFI in Germany last year to explore the European market.
Op Lighting, which has submitted a listing application in May this year, is also expanding. Jin Xin, chief financial officer of Op Lighting, said that the LED lighting industry is in a period of growth and transition, and Opt hopes to have good performance in terms of revenue and profit this year.
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Wu Yiming, the board secretary of Op Lighting, revealed that this year's Ou Pu strategy: First, based on domestic, in 2013, our revenue exceeded 90% from domestic; second, commercial lighting and home lighting flew together, our commercial lighting has grown faster than household lighting. The third is to strengthen three channels, home channels, commercial channels and overseas channels. We have developed rapidly overseas and have set up branches in Dubai and other places.
Difficult growth period As one of the representatives of traditional lighting companies, Foshan Lighting [-0.10 Fund Research Report] is also accelerating the pace of transformation to LED. Xue Qing, director of Foshan Lighting Market, told the reporter of the “First Financial Daily†that the LED lighting industry has entered a very difficult growth period, and it is difficult to accelerate the pace and increase competition.
Xue Qing said that Foshan Lighting has taken the space and land grabs as the guideline under the premise of both income and profit growth. Because in the case of the booming LED lighting market, it is a waste not to expand production and not seize the site.
Foshan Lighting started as a wholesale channel and actively expanded to the home and business areas this year. Xue Qing revealed that he first stabilized the channels of large circulation; secondly, he cut into the home channel and planned to build a large number of specialty stores in China; thirdly, he founded a sub-brand of Mingyehui to develop commercial lighting.
Because compared to the life expectancy of energy-saving lamps for two or three years, LED lights can be used for seven or eight years. Xue Qing said that this means that when the LED lights are popularized, the lighting industry's update cycle will be extended to seven or eight years. We must plan ahead, and the home decoration LED lights are not necessarily bad, and the small and medium-sized engineering market in the commercial lighting field is also Not bad, so we extend to these new areas.
This year's Guangzhou International Lighting Exhibition hit a record high, Xue Qing lamented, too many lighting brands. He believes that behind the surface prosperity, for some SMEs, winter has just begun. The rhythm of the lighting industry is accelerating, LED is a semiconductor, and the performance parameters of LED lights rise every quarter and prices fall. The LED tube sold for 69 yuan last year and sold only 19.8 yuan this year.
Some traditional lighting companies have only recently turned into the LED field, but the transformation is very strong. Like Foshan Lighting, it entered the field of LED circulation in 2011. At present, LED has accounted for one-third of the output value. It produces 12 million LED bulbs and 5 million LED tubes per month. The pressure on small factories has increased. Some small factories in Zhongshan made LEDs seven or eight years ago. In the early stage, Xue Qing said that just after paying suppliers, the upstream parts will fall in price; when the dealers just purchase, the products will fall in price, and the market acumen demand is higher.
Competition is fierce, prices are falling, and the market is squeezed under the expansion of large companies. Xue Qing believes that LED companies that lack technology and design capabilities, have no market channels, and have weak financial strength will have difficulty keeping their lives.