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LED lighting market is growing steadily

Editor:TDG-NISSIN PRECISION MACHINERY CO.,Ltd. │ Release Time:2019-05-27 

Source: China Security Exhibition Network

Even after experiencing a high level of growth of more than 30% growth rate, entering the general slowdown period, the export growth rate of LED lighting products is still higher than the average export level of various industries across the country.

Looking at the global economic situation, it is difficult to show signs of recovery, global trade is growing slowly, and the overall structure is in the stage of structural adjustment. However, as countries around the world are paying more and more attention to energy conservation and emission reduction, LEDs have become the world's most important new energy-efficient lighting products. Energy-saving lighting focused on promoting products, leading to the rapid development of the global LED lighting market. In 2018, the global LED output value reached 62.9 billion US dollars.

China's LED lighting industry's steady growth is generally on the rise

After more than 40 years of development, China's LED lighting industry has initially formed a relatively complete industrial chain, and the industry has developed rapidly. Even after experiencing a high level of growth of more than 30% growth rate, entering the general slowdown period, the export growth rate of LED lighting products is still higher than the average export level of various industries across the country.

As international giants divest out the general lighting business, China's output value will continue to increase. The global market share is expected to reach 61% in 2020. According to the data of the High-tech Research Institute LED Research Institute (GGII), it is estimated that by 2020, the output value of China's LED lighting will reach 445 billion yuan, an increase of 14.1%.

With the gradual deepening and penetration of concepts such as environmental protection, energy conservation and green lighting, LED lighting technology with high efficiency, low consumption, safety and reliability, convenient management, long service life and many other advantages has been widely used in the lighting industry in recent years. At the same time, the national green lighting project and related policies have also directly promoted the rapid development of the LED lighting market.

The market will be accelerated in the future

China's LED industry is in a period of rapid growth, the scale continues to expand, and the number of enterprises continues to increase. However, many enterprises are small and medium-sized enterprises, with weak technical and financial strength, and insufficient R&D investment, resulting in serious product homogeneity. Enterprises mainly seize market through price competition, making the industry more chaotic.

The “illumination function” is the basic core essence of lighting products. However, most lighting products on the market are almost identical and rarely innovative. Under the homogeneous environment of diversified products of similar products, enterprises are prone to a "hard fight" situation in the face of competition, leading to vicious competition, which is not conducive to the long-term healthy development of the LED lighting industry.

In addition, the LED lighting industry has gradually emerged with a trend of market saturation and reduced demand, resulting in overcapacity. It is undeniable that in the rapid development of LED enterprises, the homogenization of products will inevitably cause a large number of enterprises to be eliminated. This phenomenon is both a huge challenge and a rare opportunity for enterprises.

With the continuous development of the industry, the market share of enterprises with strong technology, strong strength and high brand awareness will continue to rise. Small enterprises lacking technological advantages and accumulated experience will be gradually eliminated. In addition, the government guidance function will also be clear, through the strengthening of the guidance of industry standards to promote industry integration and the survival of the fittest, to support leading enterprises to become stronger and bigger.

Conclusion: If LED lighting companies want to become bigger and stronger, they must understand the mechanism of LEDs, and according to market changes, through continuous innovation, and constantly improve the quality and details of products, launch products suitable for the market. Only by grasping the essence of lighting, directly attacking users' pain points and bravely breaking through innovation can we successfully seize the market. It is worth mentioning that intelligent devices based on the continuous evolution of Internet of Things technology will push LED intelligent lighting to a new level. Perhaps in the near future, LED lighting will enter thousands of households.