From the 18th Guangzhou International lighting fair, we know that the entire lighting industry scale of China is close to 300 billion Yuan last year. This year it will grow to 300 billion to 400 billion Yuan, and it is expected to increase to 500 billion Yuan by 2015, the future LED production and market demand will be higher.
After suffering a short winter last year, the growth of the market has made LED recovery this year. In the first half of this year, according to organizers, most LED enterprises operating in good condition, many companies look good on the LED market, and they have made expansion plan. Despite the good market prospects, the problem of excess production capacity still exists. Industry experts said that the threshold of LED lighting industry is low, and the government also provides high subsidies and preferential tax policy. All of these factors make a large number of enterprises enter into LED lighting industry, and then resulting in low-end products severe overcapacity.
A number of small and medium enterprises and small workshops have a large "damage" to the market.
LED excess capacity is mainly due to too many companies. China has more than 7000 registered LED companies, plus some not registered small workshops and other working groups, it is countless for those engaged in LED lighting industry enterprise. The existence of many small and medium enterprises and small workshops make low-end products serious excess capacity, which can lead to a vicious price competition. It is known that in just two years, the prices of LED lighting products had experienced a "roller coaster", the market price from the original 180 Yuan has low to 20 ~ 30 Yuan. At the same time, there are a lot of low-cost low-quality products sell for 10 ~ 15 Yuan on the market (such as cheap LED tube and LED bulb). A CEO of well-known enterprise said anxiously, now the price of LED lighting is lower, but the quality is worse, the LED enterprise does not agree with the value of it at all. He believes that only when the companies and consumers agree with the value of LED, they can accept the price naturally; we cannot blindly rely on low prices to win the market.
Future market leaves to the enterprises that have brand and independent innovation ability.
It is known that 80% of China's industrial lighting will be replaced by LED products in the next eight years (such as LED tunnel light and LED high bay light), the replace period for lighting products have come. At the same time, there are about 30% ~ 70% of small and medium LED enterprises will be eliminated by the market. Guangzhou international lighting fair is to guide the industry to the healthy and sustainable development. LED is a revolution of light source technology, the future of the market must belong to those enterprises with brand, scale, channel and innovational products.