Traditional lighting accelerates layout LEDs

Traditional lighting accelerates layout LEDs Despite the slow growth of traditional products due to weak export demand, LED lighting is relying on its ever-increasing cost-effectiveness to open more and more application markets.

In 2012, the domestic LED lighting industry has achieved high growth overall, of which indoor LED lighting is expected to reach 33.7 billion yuan (18.6 billion in 2011), and the outdoor market has grown by 57% to 8 billion yuan. Most companies grow at a slower rate than the industry because of more participants. In 2013, we believe that traditional lighting companies are accelerating their LED layout. With the promotion of policies, LED lighting will continue to grow rapidly. It is expected that the domestic indoor and outdoor LED lighting market will grow by 59% and 45% respectively.

The growth rate of the backlight market in 2012 exceeded the estimate at the beginning of the year and is expected to exceed 20%. BOE and Huaxing Optoelectronics' two ramping capacity of 8.5 generations is a good expansion opportunity for related domestic manufacturers, so many companies have obtained rapid growth opportunities. In 2013, the backlight market as a whole is going into a saturation phase. However, because the industry has signs of moving to China, there are still promising companies that are expected to have rapid growth opportunities.

Relatively surplus production capacity, the profitability of the upper-middle-stream areas showed a downward trend. Throughout the year, chips have driven a continuous decline in product prices. The gross margins of chips and packages have continued to decline while applications have been relatively stable. New LED investment has begun to shift to downstream applications, especially in the lighting sector, while chip investment has been significantly reduced.

With lower technical barriers, the industry will concentrate on leading manufacturers with experience and availability. The chip technology and scale cannot be lacking. Sanan Optoelectronics is relatively stable in competitiveness. BDO Runda is making a breakthrough. The packaging industry has the lowest barriers to entry, and Ruifeng Optoelectronics and Hongli Optoelectronics have comparative advantages. The application fields are mostly professional LED. The lighting company's first-mover advantage is not solid.

The most important phenomenon is the accelerated layout of the LED lighting company. Among them, the layout of Sunshine Lighting, Fei Le Audio and Sanxiong was relatively early, and began to reflect the effect. NVC Lighting and Foshan Lighting also increased the development of LED lighting products. Both international and domestic lighting companies will release OEM orders, which is a major opportunity for supporting the midstream and downstream industries. The mainland's dominant manufacturers have the opportunity to gain rapid growth due to cost advantages.

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