LED has the characteristics of energy saving, environmental protection, safety, long life, low power consumption and easy maintenance. It is widely used in decoration, lighting, indication, display and other fields. According to the functional characteristics of LED application products, LED application products can be divided into LED display products, LED lighting products, and LED backlight products. As shown in the following figure: LED has the characteristics of energy saving, environmental protection, safety, long life, low power consumption, easy maintenance, etc. It is widely used in decoration, lighting, indication, display and other fields. According to the functional characteristics of LED application products, LED application products can be divided into LED display products, LED lighting products, and LED backlight products. As shown in the following figure: China's LED industry began in the 1960s. Due to the small number of applications at that time, the industry development was relatively slow, mainly led by research institutes or enterprises with research institute backgrounds, and the industrialization capacity was limited. Entering the 21st century, with the continuous breakthrough of LED technology and the introduction of various national support policies, the domestic LED industry has developed rapidly. According to the National Semiconductor Lighting Engineering R&D and Industry Alliance statistics, from 2006 to 2014, the overall scale of the LED industry increased from 35.6 billion yuan to 350.7 billion yuan, with an average annual compound growth rate of 33%. It is expected that from 2015 to 2017, it will continue to maintain a growth rate of more than 30%. It is estimated that by 2017, the market size will reach 748.5 billion yuan. The three major markets drive the growth of the LED industry. One is the general lighting market. Thanks to the government's ban on the prohibition/disabling of incandescent lamps and the falling prices of LED lighting products, the LED lighting market is expected to achieve rapid growth in 2017. The market size will exceed 50% in the total LED application market to reach 40 billion US dollars. . As the world's second largest LED lighting market, China's sales volume will reach US$7 billion in 2016, a year-on-year increase of more than 30%, making it one of the fastest growing markets in the world. At the same time, in the first half of 2016, the penetration rate of LEDs in China's physical channels has exceeded 60%, and the sales of LEDs in e-commerce channels have doubled. These have laid a solid foundation for the outbreak of LED lighting market in China. With the continuous improvement of LED luminous efficiency and the continuous maturity of production technology, LED light source has been widely used in the fields of general illumination, backlight, signal light, display screen, etc., and has formed a market scale of 100 billion. From 2010 to 2015, due to the rapid growth of consumer electronics such as mobile phones and tablet PCs and the replacement of CCFLs in TV backlights, the proportion of LED backlight applications has remained at around 50%. At the same time, LED lighting has seen significant growth driven by government support and LED price declines. In 2014, LED lighting has surpassed LED backlighting to become the largest LED application-related market. The second is the street lamp market. Due to the control of international giants, it is difficult for Chinese-funded enterprises to enter the overseas market of LED street lamps. Therefore, the domestic street lamp market has become the focus of competition among major Chinese-funded manufacturers. It is estimated that the scale of China's LED street lamp market will reach 30 billion yuan in 2016, an increase of more than 50% over the same period, and the market potential is huge. LED manufacturers with EMC qualifications and cost-effective products will be the main competitors in this market. The transformation of LED street lights has become an important part of the implementation of energy-saving policies in large countries with large and medium-sized street lamps in Europe and America. For example, more than 600 cities in the United States have started or plan to install LED street lights. London plans to replace 35,000 baht of the city's 52,000 street lamps with LED street lights by 2016, several provinces in Canada and several countries including India, Russia and Southeast Asia. Emerging market countries have also introduced LED outdoor lighting related policies, which shows that LED street lighting transformation has become a global trend. The third is the LED small-pitch screen market. LED small-pitch screens as a replacement for traditional large-screen splicing products above 60 inches bring LED screen manufacturers more than 25 billion yuan in market opportunities. With the increase in the penetration rate of the domestic market, we believe that the overseas market will become the focus of competition for powerful Chinese manufacturers. Enterprises with high quality products and overseas sales experience will gain first-mover advantage. Since LED small-pitch products are only superior to traditional splicing products of 60 inches or more in terms of cost performance, the LED small-pitch screen market is mainly concentrated in the field of large-size splicing screens. In 2015, the domestic market size of 60-inch and above splicing screens was about 4.5 billion yuan. If we add overseas market demand, we expect the global market size of 60-inch and above splicing screens to exceed 25 billion yuan, so the replacement market space is huge. Since the LED small-pitch screen started earlier in China and the domestic user acceptance level is higher, the domestic market is developing faster than the overseas market. As more LED manufacturers continue to join, it is expected that the domestic LED small-pitch screen market will tend to accelerate saturation in the future, so we believe that the overseas market will become the focus of Chinese-funded enterprises, and the products with excellent product quality and overseas sales experience will Get a first mover advantage. In the background of the rapid development of the LED general lighting market, the LED street lamp market, and the LED small-pitch screen market, the LED industry will win a rapid development. Advantages and disadvantages affecting the development of the LED industry 1. Advantageous factors affecting the development of the LED industry (1) Strong support from the national policy The LED industry is a key high-tech industry in China with its high-tech and energy-saving and environmental protection characteristics. Policy support from the National Development and Reform Commission, the Ministry of Finance, the Ministry of Industry and Information Technology, and the Ministry of Housing and Urban-Rural Development, as well as numerous financial support from local governments. For example, in 2011, the Ministry of Housing and Urban-Rural Development issued the Outline of Green Lighting in the Twelfth Five-Year Plan. In 2013, the National Development and Reform Commission and the Ministry of Science and Technology The "Semiconductor Lighting Energy Conservation Industry Plan" jointly issued by the ministries and commissions. The strong support of the state has provided a good development opportunity and environment for the development of the industry, and has a greater role in promoting the development of the industry. (2) Increased awareness of energy conservation and environmental protection, incandescent lamp banned plan to accelerate the popularization of LED lighting Currently, global resource constraints and climate warming have formed severe challenges to human survival and development. The reduction of traditional non-renewable energy sources such as oil and natural gas, the vigorous development of new energy-saving industries, the development of a low-carbon economy, and the promotion of low-carbon life are the general trend. In this form, combined with the strong publicity influence of the state and non-profit organizations, people's awareness of energy conservation and environmental protection is becoming more and more intense, which makes LED lighting products more popular with consumers. At present, the major economies in the world have launched a phase-out plan for incandescent lamps. In China, the National Development and Reform Commission issued the “China Roadmap for Phased Elimination of Incandescent Lamps†in 2011. It is proposed that the import and sale of ordinary lighting incandescent lamps of 100 watts or more will be banned from October 1, 2012; from October 1, 2014, It is forbidden to import and sell ordinary lighting incandescent lamps of 60 watts or more; from October 1, 2016, it is forbidden to import and sell ordinary lighting incandescent lamps of 15 watts or more. At present, China's incandescent lamp elimination plan is continuing to progress as planned. As incandescent lamps gradually withdraw from the market, the popularity of LED lighting will further accelerate. (3) Wide range of LED applications With the advancement of semiconductor lighting technology in China, the application fields of LEDs are becoming more and more wide. There are hundreds of applications, covering three categories: indication, signal and display, and backlighting. At present, in addition to home lighting, the domestic LED lighting products are widely used in traffic lights, large LED screens, digital product backlights, architectural landscape decorative lighting, road tunnel lighting and other fields. In addition, new application directions have emerged, such as applications in aerospace, medical, and agricultural fields. 2. Unfavorable factors affecting the development of the LED industry (1) Low industry concentration The domestic LED lighting equipment industry has low concentration and the market competition is extremely fierce. In recent years, many traditional lighting manufacturers have transformed into the LED lighting market, and the market competition is getting closer. According to statistics, the number of domestic lighting enterprises has exceeded 20,000, and the phenomenon of low-price competition in the market is very serious. In the future, the integration of advantageous resources in the LED industry through mergers and acquisitions will become the trend of the times, and some small enterprises with weak competitiveness will be eliminated. (2) Lack of unified industry standards and testing systems At present, there is no corresponding industry standard for LED lighting products in China, and it is impossible to conduct unified testing and certification of product specifications and quality. At the same time, the testing equipment and testing methods of the products can not meet the rapid development needs of the industry, and the construction of the testing system is imminent. The specifications of LED lighting products on the market are different, which is inconvenient for consumers to choose and compare, which is not conducive to the long-term development of the LED industry.
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