LED civilian market warmer than expected over lighting companies face integration

The reporter understands, including REFOND honglitronic, Tongfang LED listed companies, industry insiders are invariably use "expected" to describe this year's LED market rebound, the optimistic situation, and last year the industry overcapacity deep contrast. However, reporters from a number of top LED companies understand that a strong rebound in the current round of market, is more in the lighting applications market, the popular embodied in a lot of distribution channels. In the engineering orders, the current supply and demand of the industry is still no significant improvement.

Lighting applications market order after two months

Reporters from the just concluded the eighteenth session of the Guangzhou International Lighting Exhibition learned that since the first quarter of this year, the overall LED market strong demand, from the end of the first quarter data, each industry chain enterprises orders are very saturated.

According to Wang Lianghai, vice president of the upstream chip manufacturers Tongfang said, the company is now 24 hours of uninterrupted operation of the machine, the customer has to wait for chips. While in the middle reaches of the packaging industry, said the company is currently facing both downstream demand continues to heat up, the order queue, but also the upstream chip production capacity of short-term memory shortage in shipments. Gong Weibin, chairman of the main LED backlight business Ruifeng photoelectric bluntly, the outbreak of this round of demand than expected in advance of a year, the industry is expected to grow this year will reach 15% in 2014 and even reached 40%.

This year is the best year for the LED market, there will be a blowout situation. KingSun deputy general manager Zhu Bingzhong said that at present the company's orders have been discharged after two months, is the first time in history.

It is worth noting that there are different from the government and bring into the industry after years of fire, the hot LED market, more from the demand surge, lighting applications market a lot of distribution channels. LED Research Institute experts believe that the technical upgrading of the product, the quality of stability and cost price bottomed out, prompting the rapid rise in demand for lighting applications.

However, a number of LED executives also agree that the industry is not yet able to usher in explosive growth in the second half of the industry to maintain the order is booming, especially critical.

"Now we go in distribution channels. If the three and fourth quarter continues to go up, then the next LED penetration will rise sharply. Gong Weibin said. On the contrary, such as honglitronic chairman Li Guoping said, "if the industry growth in the third quarter fell down, the problem is big".

Engineering lighting market did not blowout growth

Compared with the optimism of the civilian market, the current situation of engineering lighting is another scene.

Now everyone's attention in all aspects of the channel, including a large number of breakthroughs, market acceptance, price, the price even reached the traditional lamps, which is the reason for the flow of the channel looks prosperous. We are doing engineering lighting, there is no blowout growth. "Guangyu lighting deputy general manager Xu Min said, because not too many new projects, some recovery in LED order, but not in lighting applications so hot, and the competition is fierce.

This difference, in the middle of packaging enterprise attitude also can be seen, if the downstream customers in engineering orders, packaging companies will remain relatively cautious; if customers to wholesale or retail distribution channels, they will be relatively optimistic for expansion. In order to show the LED frequency of the municipal KingSun deputy general manager Zhu Bingzhong also emphasized that the company currently orders the vast majority of commercial lighting, "municipal decision-making process more volatility, so greater development in shangzhao. "

Industry insiders say, the field of engineering lighting to see more single ability. Daily economic news reporter noted that the background of state-owned enterprises in the field of LED concern. In the local market, for example, Guangdong LED public lighting market (the main beneficiaries of LED street lamp) is expected to exceed 6 billion yuan market capacity. Guangzhou municipal SASAC's Guangri shares, the weighted company wide electrical, Guangdong Province, the first batch of six green lighting demonstration city street is designated as LED products have been selected, is expected to become the main market of the food. SW analyst Li Xiaoguang expected, this year, the company began to enter the field of harvest in the LED, the scale of revenue is expected to rise from about 50 million yuan last year to about $250 million. "

Mergers and acquisitions are more likely to dominate the market

"Lighting channel of the game is over. "In the eyes of Elec-Tech chairman Wang Donglei, LED lighting industry integration, the key is to have the terminal market, only through the channels occupy a certain market share, in order to ensure that enterprises, especially the upstream chip and packaging enterprises to survive in the cruel market. Therefore, through mergers and acquisitions or mergers, compared to the new channel, more likely to occupy the market.

Insiders said that before the middle of overcapacity situation has not improved, both in the upstream and downstream channel has the advantage, the ability to integrate the enterprise can survive in the cruel market competition in the future. The future market competition will focus on the terminal of LED lighting applications, but more important is the formation of the industry chain downstream, echoing with the middle of the high price of the product quickly into the LED lighting industry, and is the terminal market of consumer acceptance.