Government boost LED boom behind the inevitable integration of the industry

LED lighting explosive growth become a hot market speculation, the rapid expansion of production capacity, the market alone cannot support, largely policy and funding boost results.

Similar to the photovoltaic industry, the LED industry model is also ahead of generous investment, ready to buy equipment from abroad, while equipped with the basic team and technology, you can become a LED enterprise. This industry entry threshold is also an important reason for the various local governments, companies have invested in LED projects launched.

The reason is very full, the funds are also very fit, LED lighting plate will naturally rise sharply. However, the market speculation is expected after all. Expected to cash, may not be honored. A few years ago it was expected that LED lights will be replaced by fluorescent lamps, but the final fluorescent lamps still occupy the mainstream position in the lighting market. LED lighting is still in its infancy, the development is far from mature.

Recent policy trends so that investors feel LED lighting will enter the fast lane. This time, good expectations can be cashed?

From a policy perspective, LED lighting as an alternative to benefit from the phasing out of incandescent policy. Relevant departments made it clear that it will strongly encourage the production and promotion of LED lamps. Once the market came news, LED lighting end user subsidies will reach 8 billion yuan, the latter will continue to expand the scope of subsidies and efforts.

From the perspective of the development of the industry, LED industry is shuffling, listed companies as the industry leader, is expected to benefit from the integration of the industry. Years ago, the policy began to support the LED lighting industry, but the improvement is not obvious. Under the policy stimulus, the industry has added a lot of capacity, but the lack of R & D strength, resulting in the current situation of low capacity overcapacity obvious, the industry reshuffle is also closely related to this.

The previous round of policy stimulus triggered by the bubble is broken, and a new round of policy stimulus is gradually starting. Of course, the policy will be adjusted on the basis of lessons learned, but the enterprise ready?

In the face of the market, enterprises must face the cost, technology, talent, patents, market demand and follow-up funds and other practical problems. Industry expansion period of confusion, doomed to face the dilemma. But from a positive point of view, this is not a bad thing, taking into account the opportunities and risks of the market, an industry can survive.

But in reality, the core issue of LED enterprises should be solved urgently.

LED lighting products required high-power, high brightness LED chip products, is still dominated by foreign companies. On the one hand, the domestic LED upstream enterprises to be actively involved in this "cake", increase in technology promotion efforts; on the other hand, the government's industrial policy support, should also change before the project subsidy model to encourage technology level. Multi pronged approach, with the market, allowing the industry to enter the virtuous cycle of orderly development under the guidance of the government.

The current domestic LED lighting demand side does not effectively open policy to be precise "awesome". These are the problems that can be solved by facing their own short board.

In the process of the development of each generation of light source, only by the general public recognition, become the general public home standing thing, in order to form a broad market. In other words, the ultimate use of the product is the fundamental way, otherwise it will only become a small number of collections".

If you want to develop LED industry, can not be separated from the support of ordinary consumers, in order to obtain the recognition of ordinary consumers, we must provide affordable products, otherwise all the prospects, the development will be out of the question.

Recently, the development and Reform Commission announced that China's gradual elimination of incandescent road map on the market downturn in the future for the opening of the LED application market to pave the way. LED general lighting market demand in the future will be significantly improved, companies can also homeopathic layout their own gold road map".

Despite the bright future, industry consolidation is still inevitable. Thriving and chaos in the presence of the LED industry at the same time, only after a deep integration, in order to enter the orderly and healthy development track. Insiders pointed out that although the industry will experience growing pains, but with the brand, channel, talent, technology and management ability of outstanding enterprises, more means opportunities, these enterprises can be more large-scale expansion.