LED industry has ushered in accelerated growth

In recent years, the LED market demand exceeds the expectations of many LED companies. Although the industry is still faced with fierce competition, the market is not standardized, structural overcapacity, and imperfect standards, but many powerful companies have followed a market trend and played a beautiful Battle. At the beginning of the new year 2014, driven by the huge potential of the general lighting market and the sweet spot of replacement prices, the high growth of the LED lighting industry is further clarified. What will happen to the overall trend of the industry in 2014? Which areas and links are worth investors' attention and what are the current risks facing the industry? Which potential technologies are likely to form mass production in the coming year? What are the most noteworthy issues in the standard process? What are the new changes in sales channels and methods? In response to these problems, the magazine conducted research and in-depth interviews and communication with industry professionals in order to provide reference for the industry.

2014 industry growth rate does not diminish the general lighting penetration rate will double In the general trend of energy saving and environmental protection, the prospects of the LED industry is also more clear. The advent of the LED lighting era, the industry's future growth will continue to accelerate. For 2014, the annual growth rate of China's LED industry output, 40% of respondents selected 20% - 30%, and 24% of the respondents believe that 30% - 40%. People in the industry are generally optimistic about 2014 and believe that the general lighting market, both in the industry as a whole and in the downstream, will continue to rise and maintain relatively rapid growth. With the improvement of technology and cost reduction, LED lighting has been able to replace most of the industrial, office, commercial, home lighting, LED products and traditional lighting products further narrow the price gap, will win more market share of traditional lighting products . In 2014, the world will enter the second wave of incandescent banned peak period, the substitution market demand will further increase, which will also accelerate the promotion of LED lighting products.

The focus of investment is downstream application of excess capacity is the greatest risk for China's LED industry in 2014 the most worthwhile investment link, downstream applications ranked first, followed by supporting, service industry ranked third. In recent years, there has been a relatively serious structural overcapacity in the upper reaches. Even though the market began to pick up in 2013, most of the enterprises are ineligible to increase in incremental revenues, and the net interest rate declines seriously. With the gradual opening of the downstream market, the operation space and the imagination space are also relatively large, and become the first choice of investment in the eyes of everyone. From the perspective of the investigation, the supporting and service industries have gradually received attention. According to the industry development and actual problems encountered in recent years, there are few supporting enterprises that can truly keep up with the development of the industry, and there is much room for development. The industry gradually matures. Compared with the development of more and more full-scale links in the middle and lower reaches of the industry chain, it provides services for the development of all sectors of the industry. For example, e-commerce platforms and other service sectors will also have development opportunities and are worth trying. With the gradual maturity of the industry, it is very important for large-scale enterprises to gradually establish their own material analysis laboratories and device test laboratories. At the same time, production has begun to gradually introduce automated production equipment. Equipment companies will also usher in development.

In 2014, the industry's largest risk factor that should be focused on is overcapacity with a 56% share. Based on the accumulation of investment in the industry in the past few years, the production capacity will be gradually released, and the market demand will continue to increase. However, whether or not it can match the production capacity is still unknown. In particular, as the market's economic prosperity increases, there are also signs of re-entry of investment. Whether this will lead to a new round of excess capacity may also be a concern for many in the industry.