2016 China LED Lighting Industry Trend Outlook

In 2015, under the influence of multiple factors, such as the rapid development of LED lighting, the rise of e-commerce, the promotion of the Internet, the entry of domestic economic growth into the new normal, and the structural adjustment within the lighting industry, China's lighting industry is facing the most complex situation since the reform and opening up. In this complex situation, China's lighting industry continues to maintain a high growth trend, the export situation is gratifying, has achieved good results, and achieved the perfect ending of the "Twelfth Five-Year Plan. 2016 is the first year of the "13th Five-Year Plan", energy conservation and emission reduction will remain the top priority, and LED lighting products that can play an important role in energy conservation and emission reduction will be valued by the government and the market to promote LED lighting The further development of the industry. In the 2016 of the first year, China's LED lighting industry will present the following ten trends.

1. China's LED lighting will further affect the world

In 2003, China took the lead in the world to invest in the development and application of LED lighting, and after paying a considerable price, it achieved its current leading position in the world. Before, China's lighting industry with a strong manufacturing advantage and price advantage to become the world's many well-known companies or lighting suppliers, the lack of brand influence, although the price is cheap, but the quality and performance is not high, can only be regarded as a manufacturing power. Now, China's LED lighting products and international well-known companies continue to maintain the price advantage, but the quality and performance greatly improved, with a competitive advantage. In 2015, when the world demand slowed down and the export of most industries in China declined, China's lighting exports continued to maintain a double-digit growth rate, which fully reflected the industrial advantages of China's LED lighting in the world.

The development of LED lighting will affect the pattern of the world lighting industry, the recent international famous lighting companies such as Philips, Osram spin-off listing, the introduction of strategic investors and other moves is just the beginning of the pattern of changes, many Europe and the United States with a century-old lighting companies are faced with the difficulties brought about by the development of LED lighting. This pattern change provides a rare opportunity for China's lighting industry to move from a manufacturing power to a manufacturing power. In recent years, many domestic companies have carried out market expansion with their own brands in the world. In the future, we should also use the power of capital to acquire, merge or participate in international established lighting companies, and use their brands, channels, and connections to quickly enter the international market. In 2015, Feile Acoustics M & A SYLVANIA opened a precedent for domestic enterprises to go to the world. It is believed that in 2016, more Chinese lighting companies will go to the world with products, brands or capital, and the world's lighting industry pattern will be re-integrated due to the development of China's LED lighting.

2. Financial capital cut in, listed companies will become the industry's leading force

Before 2010, there were only a few 4 to 5 listed companies in the lighting industry. Due to the small number of companies, the impact on the industry could not be expected. With the development of LED lighting, the number of listed companies related to lighting has increased rapidly. At present, there are more than 40 lighting companies listed on the Shanghai main board, Shenzhen small and medium-sized board and gem, more than 70 on the new third board, and a number of companies are listed or in the process of share reform. The implementation of the registration system in 2016 will be more conducive to the listing of companies. Listing can not only speed up the development of the company through financing, but also bring social brand influence by becoming a public company. At the same time, as a listed company, it will increase the trust in the eyes of users, which is conducive to the market expansion of the company. It is believed that with the increase in the number of listed companies, the influence of this group of listed companies in the lighting industry will increase and become the leading force. Lighting companies should pay attention to the progress in this regard, formulate company development strategies, independent listing, backdoor listing, or through mergers and acquisitions, should be selected according to their own circumstances.

3. Cross-border integration, the Internet to promote the transformation and upgrading of the industry

Cross-border integration and interconnection are currently hot topics, and the advancement of the Internet makes this topic in-depth in the lighting industry. Using the easy control of LED and the ubiquitous application of lighting products, additional functions related to urban management, life and work. For example, in the construction of smart cities, the carrier of street light poles is fully used to load traffic monitoring, safety monitoring, meteorology, air quality monitoring, medical assistance, WIFI, broadcasting, information screens, charging piles, big data collection, etc. It provides a means to improve the level of urban management, speed up the response speed, and deal with emergencies. In addition, we can make full use of the advantages of LED dimming and color, combine the mechanism, strengthen research and related experiments, and promote the application of LED in the fields of agriculture, medical treatment and health care. The integration of related technologies has made lighting products a platform, greatly improved the additional functions of lighting products, made them a tool for cross-border and interconnection, enhanced the role of the lighting industry, and expanded the business space of lighting enterprises.

4. LED lighting industry acquisitions, mergers, integration will intensify

As a new type of energy-saving light source, LED has various tall hats such as high efficiency, energy saving, green environmental protection, and high technology. It has attracted the attention and support of governments at all levels, introduced various preferential or subsidy policies, and triggered the whole society. Investment boom. Companies with financial strength and scientific and technological capabilities have entered the lighting industry, and the number of companies engaged in lighting research and development and production has increased rapidly. According to incomplete statistics, the number of lighting companies has reached more than 20000. Market demand in the short term due to the joint role of the incremental market and the stock market, but also can barely maintain the survival of so many production enterprises, but with the improvement of market penetration, the stock market will be gradually released, coupled with the long life of LED lighting products, market demand will decline, enterprises will enter the integration stage. In 2015, LED lighting products have been reflected in mature technology, market acceptance capacity, increased demand, and due to the decline in prices, and did not increase sales because of the increase in production, so some enterprises doubled production than last year, but sales did not increase. Because of the fierce market competition, corporate profits have become thinner, and the sales of most companies have increased, but the increase in profits has not been synchronized, and companies have not felt the dividends brought about by the increase in market sales. High-tech products have sold cabbage prices, and the prices of some products are lower than traditional products. Competition can be described as fierce. The development of an industry from the beginning to surplus, to maturity, this is an inevitable process, in this process, there are enterprises to develop and grow, there are enterprises eliminated, this is a normal phenomenon. In order to seek development, many enterprises use their own advantages to integrate resources. In the past two years, dozens of mergers and acquisitions have occurred in the industry, which will be further intensified in 2016.

5. Subdivision and specialty will be the way for enterprises to survive and break through

Lighting is a distinctive industry. Its products are used in all walks of life and families. Its requirements are closely related to the working environment, work content, people, and living standards. After more than 30 years of reform and opening up, most industries in China have formed enterprises with monopoly advantages, and the sales of the top enterprises can account for 70% to 80% of the whole industry. The lighting industry, which also started in the 1980 s, has only more than 4 billion largest sales companies, and the sales of the top ten companies account for less than 10% of the industry. It has been suggested that the sales of the top ten companies account for 70% to 80% of the industry, which is a mature industry, and vice versa. However, it cannot be generalized. The reason why this state of the lighting industry appears is determined by the characteristics of the products. Personalization, customization, and special requirements determine that a considerable number of lighting products cannot adopt large-scale production methods, and it needs to be treated differently. Therefore, subdivision and specialty provide living space for enterprises. How to design products on demand and be professional; How to provide design solutions according to the environment and achieve subdivision; How to install products according to requirements and provide good services. Enterprises do not seek to be big, but to be specialized, fine, deep and good, and to pursue high added value. Many European and American lighting companies with a century-old history have only 2 to 0.3 billion euros in sales, but they have few rivals in their fields. At present, there are too many enterprises. Under the current situation of overcapacity in the whole industry from production, sales to engineering, it is most important to live. According to the characteristics of the enterprise itself, to be professional in the subdivision field is the way for the enterprise to break through and survive.

6. Intelligent lighting will become the industry's new outlet

Intelligent lighting is the focus of the industry in the past two years. The easy control of LED provides space for the development of intelligent lighting. Intelligent lighting is not a new technology in the field of lighting, through infrared control, radar control, voice control, program control and other technologies to achieve light and shade adjustment, switch lights or power adjustment has long been, its main purpose is to achieve energy saving. However, LED can realize the change of light and shade, color temperature and color through intelligent control, which can not only achieve the purpose of energy saving, but also play a role in regulating physiology and soothing mood in life or work, so as to improve work efficiency or facilitate work. Such as according to the age of people to provide light change mode, both to ensure the needs of life and conducive to rest. Provide scenario mode according to the application environment to meet the work needs, or provide lighting mode according to the work content to improve work efficiency. However, in the design and provision of intelligent lighting products, we must avoid artificial complexity, timely action, simple, practical, easy to operate as the premise, on-demand design, landing is the most important. Intelligent lighting plays an important role in improving the quality of life, improving work efficiency and improving management level. With the improvement of living standards, the application of intelligent lighting will become more and more common and will become a new outlet for the development of the lighting industry.

7. LED extension services, the birth of innovative business models

Compared with traditional lighting, LED lighting is much more complex in maintenance. In the past, most of the maintenance was mainly to replace the light source, and ordinary people can basically operate. However, LED lighting involves modules, power supplies, intelligent control systems or various loaded systems related to urban management functions. Once a fault occurs, it is necessary to judge the fault point and maintain it. Therefore, maintenance personnel are required to be professional. The promotion of PPP mode in the future requires us to strengthen service functions. Therefore, how can lighting manufacturers themselves or engineers with whom manufacturers cooperate establish a perfect service system in the future, form a new business model. The establishment of this business model, on the one hand, can form a fixed source of profit for the enterprise, on the other hand, it can become a priority supplier of service objects to ensure the sustainable development of the enterprise.

8. LED lighting products have cost performance, standard specifications need to be landed

The price of LED lighting products has declined at a faster rate in recent years, and the price of some products is even lower than that of similar traditional lighting products, such as LED T5 tubes, flat-panel lamps, etc. This is an important reason for the rapid application of LED lighting products. However, the current application of LED lighting products in most cases is used for transformation, and as a new building design stage basically did not use LED lighting products. The main reason for this situation is that there is no uniform specification for LED lighting products at present. As a designer, when designing a scheme according to the lighting requirements of the environment, there should be optional products as the basis. Our national standards have also issued photoelectric parameter requirements similar to downlight lamps, flat-panel lamps or tubes, but many of them are basically fully covered and have no specifications. In addition, the LED parameters produced by different chip factories are different, resulting in inconsistent parameters of LED lighting products produced by domestic enterprises, and designers cannot select models, resulting in obstacles to the use of LED lighting products in new buildings. Therefore, the relevant institutions should jointly formulate relevant norms to promote the application as soon as possible, form standards in the application, and promote the healthy development of the LED lighting industry.

9. LED lighting into the national energy saving and emission reduction grip, the correct guidance is a top priority

LED lighting with its energy-saving advantages has been the attention of the relevant government departments, the introduction of a variety of preferential and subsidy policies to promote the rapid development of the LED lighting industry, enterprises have also increased capital investment and research and development efforts, making LED lighting products technology mature, the rapid decline in prices, market application has no obstacles. However, in the process of promotion, the promotion of LED lighting products is not smooth because of some traditional thinking. Take street lamps as an example. At present, there is little progress in mainland cities. The main reason is that the chip modules in street lamps produced by various enterprises are not interchangeable, which leads to the failure of street lamp related departments to adopt them. However, as LED lighting products, we need to have new thinking. First of all, LED as a new light source, such as under the premise of ensuring quality, its life has reached tens of thousands of hours, far higher than other parts used in street lights, such as power supply, plastic parts, waterproof rubber ring, waterproof glue and so on. Secondly, the connection mode of the module, whether through screws or plugs, is very difficult and unrealistic to replace at an altitude of 12 meters. Therefore, the requirements for the interchangeability of modules should also be discussed. In addition, the LED lighting products used in the indoor environment, because the specifications are not uniform, designers in the design of the project can not be selected, making the new project LED lighting is also not smooth. In addition, the disorderly promotion of LED lighting in the past few years and the current product quality have also affected the application of LED lighting products by many consumers. All of this requires us to carry out a lot of publicity work and correctly guide consumers. Only in this way can we make the application of LED lighting products more smoothly.

10. "Thirteen Five" will be the thrust of LED lighting to accelerate the development

At the Paris Climate Conference that ended not long ago, China made a commitment to the world in dealing with climate warming. 2016 is the first year of the "13th Five-Year Plan". Energy conservation and emission reduction will be the top priority throughout the five years. LED lighting will be valued by governments at all levels and the market for its significant energy-saving effects. The implementation of the "13th Five-Year Plan" will surely become a powerful driving force for the development of LED lighting. The relevant practitioners of the lighting industry should seize this opportunity to tide over the difficult period with the help of the development of LED lighting in the environment of slowing economic development at home and abroad. At this stage, survival is more important than development. Only by surviving can there be capital for development.