The LED industry's prosperity improves the market standard order to be standardized

At present, the lighting industry is in the stage of product change, incandescent lamps, energy-saving lamps and LED lighting are in the stage of coexistence, and no one can completely replace who. At the same time, various changes at this stage are emerging one after another, and the development of LED lighting is highly regarded and respected by the industry. Especially this year, under the influence of internal and external factors, the LED lighting application market is ushered in a new round of explosive growth. At the same time, in the context of the LED industry's booming and market expansion, the influx of capital and the continuous increase of the company's products have resulted in uneven product quality, intensified disordered competition, and the need to standardize market standards. . From this situation, there are many factors that affect the development of the LED lighting industry. Therefore, we can't be blinded by the temporary benefits of LED lighting, we must see the new trend of LED lighting industry development. Industry organizations pointed out that the current explosive growth in the downstream lighting market has driven the release of production capacity in the middle and upper reaches, and the industry's overall prosperity index has risen. The overall performance of LED companies is remarkable. However, with the intensification of market competition, enterprises with cost competitive advantages actively initiated price wars to seize the market, and the product prices in all links of the industrial chain continued to decline, which reduced the overall gross profit margin of the industry. Based on the expectation of the LED lighting market, many mergers and acquisitions incidents occurred from January to July this year, and the vertical and horizontal competition still promotes the change of the competitive landscape. The continuous expansion of scale and the seizure of downstream channel resources have led to the continuous rise of financing costs for LED companies. In recent years, the increase in capital prices at the macro level and the rise in labor costs have led to the rise in financial costs of many companies, which has become an important reason for the decline in profitability of LED companies. one. In addition, as consumers become more aware of LED lighting, the requirements for lamps are not limited to lighting, and new requirements are placed on the quality, design, and innovative applications of lamps. Moreover, in addition to the engineering, commercial, and outdoor lighting markets, innovative applications of semiconductor lighting have already touched the fields of smart cities, industrial agricultural lighting, medical lighting, food lighting, cultural and entertainment lighting, and wearable devices. With the diversification of the application market, more innovative applications will emerge in the market, and we will see more new breakthrough applications in the future.

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