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In-depth analysis of the LED industry chain

2018-11-21 11:01:56
The technical development of LEDs has matured and entered a period of profit creation with added value. With the support of technology development, capacity improvement and policy support, LED lighting products have an overwhelming advantage in both quality and price. In the future, LED lighting products will gradually eliminate incandescent lamps and gas-energized light sources.


LED lighting supplier and manufacturer china

The concentration of the middle and upper reaches of the LED industry chain is high, and industrial transfer is a foregone conclusion. The upstream epitaxial chip entered the peak of expansion, and the market share was highly concentrated, showing the industry pattern in which the remaining is king. The package in the middle reaches a super-strong situation, the production capacity is gradually gathered, and the Matthew effect is obvious. The transfer of foreign production capacity in the upper and middle reaches is a foregone conclusion. Under the background of intensive production and policy subsidies, the cost of LED terminal products will gradually decline, which is conducive to the improvement of the profitability of LED downstream application companies.


GU10 LED Spotlight manufacturer china

The downstream application is polarized, growing rapidly and with a wide space. General lighting is the most stable and broad market in LED application. China's LED market is developing at a late stage. It is estimated that the sales of LED lighting products in China will account for 70% of the total sales of lighting industry in 2020. The scale of LED general lighting market It will reach 450 billion yuan.

Integrating mergers and acquisitions, multi-distribution, and global development is the future of China's DLED industry. Foreign giants divested the lighting business, and domestic companies ushered in an opportunity. From 2015 to 2017, the LED lighting industry has more than 40 major M&A integration transactions every year. The M&A targets have also expanded to the education, media, Internet and other fields. Into the new field, mergers and acquisitions in the same industry, the layout of the global market, the integration of the upper, middle and lower reaches of the same industry chain is the main direction of MDM mergers and acquisitions.


LED Panel Downlight manufacturer china

China's LED industry is benefiting from policy promotion. Leading companies in the upstream and midstream have used technological advantages, cost advantages and financing advantages to continuously increase market share. Downstream applications can be expected to grow under the impetus of general lighting demand. We believe that the leading performance of the industry will maintain steady growth in the context of the certain degree of concentration of the lighting industry in the future.