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China's LED factory pulls industry changes LED lighting low price era is coming
Looking back at 2014, many LED companies have collapsed and closed down. Many manufacturers have taken strategic changes or organizational adjustments in response to the rapidly changing market. Yu Qiao, research associate of the global research organization Jibang Technology Green Energy Division, said at the LEDforum2014 conference that the rise of Asia, especially the Chinese manufacturing plant, has prompted rapid changes in the market, driving low-cost lighting, bringing significant impact and transformation to the industry. . LED lighting promotes market growth. Replacement products are mainstream storage. In the Asian market, price competition is fierce. It is extremely difficult to maintain rapid high growth rate. It is conservatively estimated that the global LED packaging market will be about $14.6 billion in 2014, up to 2018. The compound annual growth rate is only about 3.2. Among them, the LED lighting application is the largest. In 2014, the revenue was about 4.8 billion US dollars, and the compound annual growth rate was 12, which became the key growth momentum of the LED market. At present, LED lighting applications account for the highest proportion of alternative light source products such as bulbs and lamps. LED packaging types are in response to demand and medium power is also the mainstream application. In view of the trend of high-power European and American manufacturers, we are actively seeking the trend of Asian manufacturers ODM or OEM. Chu Yu believes that the overall situation of the lighting market has been fixed, and manufacturers are moving towards low-cost solutions. Standardization of LED specifications, production of low-cost, low-end market, with the advent of low-cost lighting, manufacturers continue to introduce cheaper solutions. The reasons why the ultra-analytical vendors can adopt low prices, including economies of scale production, fully automated production, and the emergence of new operating models, have led to continued declines in LED lighting prices. From the perspective of LED package components market, high-end lighting applications are designed for different product types to achieve optimal effects; low-end applications are standardized towards LED specifications, attracting manufacturers in mainland China, Taiwan and Japan and South Korea. Follow-up, have rushed to attack the low-end market, which is most favored by manufacturers with 2835 and 3030 specifications. Taiwan, Japan and South Korea LED factory focus on 3030, with EMC bracket as the main application; 2835 is the main specification of LED manufacturers in mainland China, with LED components standardization and scale production pressure low cost, the price is quite high. In order to compete with China's 2835, the Taiwanese factory will open 3030 from the original 1W specification to increase the number of 3030 market. Automated production reduces assembly costs. 50% of new operating models impact the market. Another market trend is to introduce fully automated production lines. Since the second half of 2013, some assembly plants in mainland China have begun to introduce automated production lines, which can reduce assembly costs by 50%. However, each LED bulb or lamp has different specifications and solutions, and cannot be standardized. In addition, the introduction of an automated production line requires huge funds, so that automation is difficult to implement quickly. Evergrande, the largest lighting industry, is getting bigger and bigger, and the cost is getting lower. In response to the era of low-cost, mainland Chinese manufacturers are actively pursuing many new business models, such as the e-commerce channel, which can solve the problem of excessive price of LED lighting products. In addition, it is like the operation mode of the LED lighting alliance in China through the series of suppliers of components in China, and the price will be in accordance with the specifications, which will also cause certain damage to the market. The pressure brought by the rise of Chinese mainland manufacturers has brought the LED industry to a severe test. The next step is to gain an advantage in the red sea of ​​price-cutting competition, or to find blue oceans to invest in niche or emerging markets, all of which must be carefully considered and laid out.