Restricted outside the core technology of LED lighting into people's homes hard

2011 Guangzhou International Lighting Exhibition held recently, show that many companies have correspondents complain south, although the rapid development of LED over the past year, but due to the cost of LED hard to drop and consumer awareness is not enough of LED, LED lighting is hard for the family.

Industry analysis, with the international giant companies enter the Chinese market, China has a lot of the core competitiveness of enterprises will face the risk of being acquired, or lack of competitiveness of enterprises will be eliminated directly, the industry is facing a new round of restructuring, shuffle. LED lighting industry will show a polarization of the situation: either have their own core technology, and then rose to leading enterprises; or to do some big companies supporting the passage of time and then collapse or loss of competitive restructuring.

Core technology difficult to break dependence on foreign costs

"The current LED lighting is also concentrated in the more specialized areas, such as government procurement, hotel, office, home, yet truly universal access to people, this is really big cake." Jihua electric operations manager Yajun said. But how leveraging this "real" cake, Yajun reluctantly said "There is still difficult."

Lighting Technology Co., Ltd. Guangdong Asia an analysis of President Wu Wenfeng, LED lighting into the home of the main reasons is difficult to "price remains high", LED high-cost, high prices, the average consumer is difficult to accept, is to stop the LED into the home field of the main reasons.

For a long time, LED wafer and chip market upstream core technologies, several industry giants by foreign monopoly. China's LED lighting industry in the epitaxial wafers, chip two key areas of weakness, resulting in lower cost of LED lighting is difficult.

Wu Wenfeng, last year Tongfang has 3 billion investment in Nantong, Jiangsu construction of high-brightness LE D applications integrated industrial base, intended to break the monopoly of foreign giants, to create "Chinese core." Tongfang has now mastered, including high brightness blue and green LED wafer and chip production project, including preparation of key technologies, this LED is expected to exceed 25 billion yuan in output value, an increase of 25%. Wu Wenfeng forecast, China's LED industry output in 2011 is expected to reach 180 billion yuan.

U.S. lighting brand planning director Ling Meng also expressed the same concerns, "there is lack of core technology, especially this one chip, mainly dependent on foreign technology, the cost has not been very good break."

Yajun said, LED is difficult to enter the home field of the other reason is that consumer awareness of the LED is not enough, "the Olympic Games with LED, Shanghai World Expo with LED, but what is the LED, many people have not experienced." These are the marketing needs to overcome difficulty.
How can the LED into the mass people's home? Ling Meng believes that in addition to lower LED prices, the core technology to solve problems, improve public acceptance LE D, they also need to make LE D products more mature, that is, in addition to energy, to the consumer provide variety and choice.

Competition for five hundred billion market

"Industry analysis, LED industry will be rapid development in 2012, more than 70% by 2015 will be the global lighting market, LED. The domestic market is considered the world's largest market." Sun Sun Lighting CEO Sun Jian Ning Duinan are told reporters. LED lighting market in 2010, the output value of China of 1200 billion yuan. Experts predict that by 2015 could reach 500 billion yuan.

500 billion yuan a huge cake, many foreign giants in the attack, the Chinese companies how to deal with competition?

Ling Meng said, the United States does not rule out acquisitions of other LED business, stride. "U.S. to do lighting, though started late, but you can rely on financial and operational strength, take the elevator to catch up quickly. Does not rule out future acquisitions by way of quick cut to the LED industry, which will have a new pattern for the entire industry influence."

MENG Ling south are admitted to reporters, as the U.S. home appliance giant, last year, more focus on furniture, lighting, LE D overall U.S. sales accounted for the proportion of turnover is not high. But this year equipped with the product back, I believe there will be a lot of breakthroughs in LED performance. In this exhibition, the major U.S. shows a more mature technology of LED lamp, LED spotlights, LED panel and a series of energy-saving products. It is understood that the United States Electric Lighting Project started in early 2008, less than two years time to achieve a sales exceeded six hundred million, is now sitting on light, lighting, electrical three major industrial base.

Or facing the industry reshuffle

With the United States, Tongfang cross into the LED industry and other enterprises, LED market faces enormous competition.

"Optimistic about the outside world, the capital get together, could lead to overheating industries. There will be many businesses closed down because of overheated industries." Nankai Electric Light Lighting Industry Association of the South are often Liu told reporters that his concerns about the development of the LED market. "Like a cup, only so big, put too much water will overflow."

According to reports, the Chinese lighting market, while capacity, brand names, but one has been showing foreign brands dominate. On the one hand, to Philips, Osram, GE and others as representatives of several major "foreign brand" run the world; the other hand, despite the large number of local lighting companies, but the lack of brand power and core technology, some of which also perish OEM products to foreign countries and even miniature.

Industry analysis, with the international giant companies enter the Chinese market, China has a lot of the core competitiveness of enterprises will face the risk of being acquired, and lack of competitiveness of enterprises or will be eliminated directly, the entire industry or face a new round of reorganization, shuffling. LED lighting industry will show a polarization of the situation: either have their own core technology, and then rose to leading enterprises; or to do some big companies supporting the passage of time and then collapse or loss of competitive restructuring.

"There are tens of thousands of domestic LED manufacturers, but the real power to form an independent brand, but in a few products with independent core technology, a complete marketing system is extremely rare." Yajun said.

Institute senior engineer Zhang Xiaofei and even the LED industry is expected within three years, currently only 50% of indoor LED lights small businesses will disappear, the main reason is low quality.

Wu Wenfeng calls, LED lighting technologies and products, is still mixed, uneven situation, the priority is the introduction of industry standards, regulate the market.

It is understood that the 16th Guangzhou International Lighting Exhibition brings together 47 countries and regions, more than 2,600 exhibitors of the latest scientific and technological achievements. From the scale, is the world's largest lighting show.

As the host of the show, Guangdong LED is listed as one of its three new strategic industries, by 2012, LED industry will reach 120 billion yuan. During the second five, Guangdong will promote the use of 3 million outdoor LED lighting, 30 million indoor LED lighting, urban lighting to achieve the goal of saving 20 percent.

Related reports

Ten million U.S. dollars venture to patronize LED

Recently, SunSunLighting Announces $ 10 million first round of the Jinsha River, after the current round of investment, SunSunLighting become one of the few venture capital downstream of the LED lighting business.

"Our advantage is that LED driver technology and systems integration with independent intellectual property rights Pow erX plore technology." SunSunLightingCEO Sun Jianning said that the current impact of LED lighting products into the general lighting is the biggest obstacle to high costs, SunSunLighting the industry with the Jinsha River chain, the advantages of vertical integration, the use of mass production effect, will have a disruptive products to market cost.

Jinsha River is known for high-tech company invested early venture capital fund, since 2005, began the layout of the LED industry, has invested in eight companies, covering the extension of the chip, packaging and industrial lighting applications, and all other aspects.

2011-6-30