(Cri-report) - In 2011, the global economy was confronted with the great difficulties. The market of electronic products experienced the chilly winter. Various kinds of products encountered the poor sales. The increase speed of LED industry also slowed down with it. In 2011, the annual increase rate of global LED market was only 9%. In the past decade, there was the great development in the equipment market. However, the industry is influenced by many factors. Because the demand of lighting market for LED backlights is not as strong as we imagine. The challenges still exit. However, with the aggravation of homogenization competition, the product prices of LED products further fall. Plus with the cost increase, the concentration rate of LED industry will further increase in the future.
According to the statistics of LED industry institutions, currently, there is the number of over 5,000 LED enterprises in China. Among them, the number of packaging enterprises is over 1,000 and the competition in the midstream and downstream industries is intense. Because of few domestic manufacturers of upstream chips, the chips of midstream and downstream enterprises are mainly imported. Based on the operation statistics from listed enterprises, due to the poor macroeconomic environment and the serious homogenization competition among enterprises, as well as the decreasing price and the rising costs, the performance of the majority of midstream and downstream enterprises all had the downward trend in the second half of 2011, the third quarter of 2011 in particular, except for some upstream enterprises. In the second half of 2011, a lot of small-sized enterprises were eliminated. Nevertheless, the phenomenon is suddenly changed since 2012.(source:http://www.cri-report.com/238-research-report-on-global-and-china-s-led-industry-2011-2012.html)
There is an obvious recovery of LED industry
In 2012, LED Industry welcomes the new supporting policies. Seen from the application field, the terminal products of LED
enterprises are mainly imported. The domestic application is predominated in the aspects of backlights and LED displays and the lighting application is not really started.
In terms of each market segments, LED backlight fields of display screens and LCDs slow down their high increase speed. The number of the application field of display screens is plentiful so that the homogenization competition is severe and the profit space of enterprises is constantly compressed. There are huge LED markets in fields of civilian lighting and public lighting. However, the high prices hinder the wide promotion of LED lighting products. Japan, one of the earliest countries, which declares the prohibition use of incandescent lamps, is with quickest growth speed of LED lighting currently. The subsidies and incentive policies from the government are regarded as an important driving force of the fast development of Japanese LED lighting industry.
In Nov. 2011, China also declared the exit plan of incandescent lamps. Since 2012, related authorities also publish a series of subsidy policies targeting at the LED lighting and energy-saving TVs. In addition, some qualified provinces set the local supporting policies about LED lighting. It is expected that with the overall beginning of the 12th five-year-planning, the introduction of relevant policies, the promotion of lighting application scale and the steadiness of international economy, the situation of Chinas LED industry will become better in the second half of 2012.
With the increasing demand of the global LED market, the huge potential of Chinese lighting market is favored by many multinational enterprises. Domestic enterprises should explore the new thinking and modes of global industrial development with a global vision and more wide minds.