LED industry, the red sea will usher in a major reshuffle

The current LED industry has become a new generation of energy saving and environmental protection of the main force, but also an important part of the new generation of information technology. China's energy consumption has been ranked first in the world, various forms of energy saving is particularly important. In recent years, the LED industry has quickly become a dark horse in the field of energy conservation".

Since January 1, 2014, the United States commonly used 40 watts and 60 watts of traditional incandescent lamp manufacturers will stop production and supply. Affected by this news, a LED plate and broad, rectangular lighting, changelight and other stocks are trading.

Ledinside predicts that in 2014 China's LED lighting products shipments will reach 1 billion 320 million, an increase of 68% over this year.

Although the end of the demand for lighting continued to grow, but the overall situation of China's LED overcapacity for a long time. Rome was not built in a day ", with the United States led lighting applications market open end, domestic overcapacity situation will be effectively alleviated? Chinese LED industry can take out the puzzle of overcapacity? Industry reshuffle will come?

Excess capacity under subsidies

2011, that swept the Pearl River Delta region led business collapse is still fresh in the mind - from the capital has been chasing the sunrise industry, to a number of business owners frequently foot, the rapid change is staggering. Investment expansion caused excess capacity in the industry, is generally considered to be the biggest cause of the collapse of the culprit".

Although after more than two years, but overcapacity is still lingering clouds on the head Chinese led industry.

The United States lux research China investment agency area director Li Jun pointed out to reporters: "for example, in China LED lighting industry chain, lighting production link on the existence of at least 5000 or more enterprises, basically belong to the enterprise and capital investment can no longer place. "

He told reporters that the current domestic LED packaging companies have more than 1000, the same is very crowded. The upstream production epitaxial film companies, has more than 50.

Excess capacity is the biggest reason for the industry is expected to be too high. Indeed, the state has introduced a lot of good policies have also given a lot of subsidies, in this case the rapid expansion of the industry led to the emergence of the industry immediately. Li Jun said.

GGV capital partners also invested in LED lighting Lifeng also told reporters that the LED lighting industry Chinese often rely on a lot of policy and financial subsidies to stimulate, even need the government directly to the project related enterprise, so causing the government of a money we will roar on the situation, and the industry barriers to entry and comparison low, easily lead to overcapacity".

Thus, China's LED industry will appear on the side of the government desperately subsidies, but the other side of the business has been closed down a strange scene.

There is still room for development

However, in the current LED industry Lifeng believes that although there is overcapacity, but this is a pseudo proposition, "China LED industry still has great development space has not been released".

With China's air, air and soil pollution is becoming increasingly serious, the general public awareness of environmental protection has become more and more intense, energy-saving and environmentally friendly LED lighting slowly began to be accepted by the public.

"People are beginning to realize that they can't do anything about polluting the environment while saving energy and protecting the environment. Yu said.

Yang Dongrui, senior vice president of capital also told reporters that the current real estate industry is experiencing some overcapacity and technical problems, but this is only a phased problem.

Many industry insiders also believe that, in fact, the development of China's LED industry is still relatively healthy. In the development of each industry will encounter the same problems, such as technical barriers, short-term overcapacity, etc..

From the current terminal price point of view, the price of LED lighting products fell very fast. Yang Dongrui said: the current price of about 4~5 yuan per watt, before you need a few dozen dollars, basically now ordinary people can afford to buy led lights. "

At the same time, the global price of LED lighting products are also rapidly declining, such as bulb bulbs and lamps and other alternative light source products to replace the most prominent. In North America, such as the United States government support for LED lighting in gradually increasing, American households used 40 and 60 watt incandescent lamp manufacturer since January 1, 2014 will stop production and supply, is one of the performance of government support.

It is reported that the United States star (energy), also plans to increase the number of subsidies for lighting products rapidly, will further reduce the price of LED lighting products. Market forecasts show that next year, the amount of LED lighting products in North America is expected to grow by 72%.

Big reshuffle will come

Statistics show that in 2013 the global LED lighting market size of about $27 billion 200 million, $2014 is expected to reach $39 billion 200 million, market penetration of up to $34% in 2015 will reach $45 billion 900 million, penetration is expected to exceed 4.

Investment adviser senior researcher He Zaihua told reporters that the opening of the U.S. market can effectively alleviate the problem of excess capacity in China's led industry.

Currently, the U.S. led market is mainly concentrated in sign display and mobile display, its high demand is mainly reflected in the signboard led, billboards and mobile phone products, the demand for these areas is still growing.

Today, coupled with the opening of the domestic lighting market demand, the domestic market to enter the U.S. led market is undoubtedly a good news. He Zaihua said.