On March 19, 2014, LEDinside’s chief consultant market analysis meeting, exclusively sponsored by Epistar, the world’s largest LED chip manufacturer, opened as scheduled at the Boya Hotel in Shanghai. LEDinside’s strong team of analysts conducted in-depth analysis on the research fields and shared first-hand survey data and the most intuitive and detailed analysis reports with the guests.
Prices drop, LED light source replacement wave sweeps the world
Ms. Wang Ting, an analyst at LEDinside who has long tracked global LED lighting market dynamics and trends, pointed out in her speech that the rapid decline in the price of alternative lighting products has brought about a global wave of LED light source replacement. Among them, bulbs and lamp tubes have become the replacement light source types with the highest demand in the market due to their high consumer acceptance and strong replaceability. Compared with 2013, the global demand for LED bulbs will increase by 86% in 2014, while the demand for LED lamps will increase by 89%.
In terms of retail prices in the global light bulb market, according to LEDinside statistics, in January 2014, the global average retail price of LED light bulbs that replaced 40W dropped by about 21% year-on-year, and the price of LED light bulbs that replaced 60W dropped by about 28% year-on-year. The rapid decline in product prices of first-tier brands has promoted the accelerated standardization and integration of regional markets. In addition to price fluctuations caused by the launch of high-performance new products and the promotion period of individual products, bulb prices in various regions have shown a steady downward trend. While prices are falling, the cost-effectiveness of products in various regions is also gradually improving. In addition, the formulation of LED-related standard policies and the launch of replacement bids in various regions have also promoted the development of the global LED lighting market.
The analysis site was packed
International, Taiwanese and mainland manufacturers “sealed” the LED world
LEDinside analyst Yu Bin pointed out in his speech on China's packaging market that China's LED packaging market grew by 20% year-on-year in 2013, which was lower than market expectations. Yu Bin said that the continued decline in prices is the main reason for the slow growth of market size. Commercial lighting was the main driving force for the growth of the LED packaging market in 2013; the backlight packaging market was affected by the increase in the penetration rate of domestic TVs and smartphones, and the market scale further expanded; however, in display screens and other mature fields, the market scale growth was relatively limited.
Yu Bin divides China's LED packaging market into three major camps, namely the international manufacturer camp, the Taiwanese manufacturer camp and the mainland manufacturer camp. In 2013, the international manufacturer camp performed best in the Chinese market and grew the fastest; the mainland camp maintained steady growth; Taiwanese manufacturers performed relatively sluggishly. Yu Bin believes that international manufacturers have accelerated their entry into China's LED packaging market and will not be greatly affected by the rise of mainland manufacturers in the short term; the concentration of mainland China's local packaging industry is gradually increasing, and excellent manufacturers are developing rapidly; while Taiwanese manufacturers are greatly affected by the rise of mainland manufacturers, and their market share is gradually declining.
The EMS oligopoly pattern of China's LED lighting industry
In the last speech, LEDinside senior analyst Wang Fei said that according to the performance forecasts and annual reports disclosed by LED listed companies, the LED industry generally increased revenue but did not increase profits in 2013. The reason for this, Wang Fei believes, is the tragedy of the commons caused by excessive investment, and one of the solutions is to eliminate exit thresholds, reduce the number of companies, and reduce the intensity of competition through mergers and acquisitions between companies. The second is to enhance the protection of intellectual property rights, encourage enterprises to innovate, curb plagiarism and copycats, and provide a better competitive environment for outstanding enterprises to win.
Wang Fei also said that in the future, competition in China's LED lighting industry is likely to start between several major camps of representative companies such as Dehao Runda, Mulinsen, and Sanan Optoelectronics, forming a tripartite oligopoly pattern like BAT in the Internet industry, which can be simply called the EMS of China's LED lighting industry (E=ETI, M=MLS, S=SANAN).
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