On January 5th, 2017, the 2016 Gaogong LED Annual Meeting·Golden Ball Awards Ceremony and the 10th Anniversary of the High-yield Industry and Research (2006-2016) celebration hosted by Gaogong LED were held in the theme of “Looking for the Future of LEDâ€. Shenzhen Long restarted the curtain.
As the annual year-end event of the LED industry chain, the 2016 Gaogong LED Annual Meeting will once again bring together domestic and foreign business leaders, and in-depth analysis of the overall industry opportunities and risks with more than 500 industry elites on site, and comprehensively look forward to technology, market, capital, pattern, etc. The trend of various aspects is going forward, and we are looking for the “decision†of China and the global LED lighting industry in the next three years.
At the opening ceremony of the “New Vision of Industrial Integration†at the name of Jingyuan Optoelectronics, Dr. Zhang Xiaofei, Chairman of Gaogong LED, delivered a keynote speech entitled “The Future of LED under the Challenge of Changeâ€.
Dr. Zhang Xiaofei, Chairman of Gaogong LED
First of all, Dr. Zhang Xiaofei made a summary of the LED industry in 2016. According to the data of the High-tech Research Institute LED Research Institute (GGII), the global LED industry market scale reached 699.6 billion yuan in 2016. Among them, general lighting is the main driving force for the growth of the LED industry. The annual global LED lighting penetration rate is 36%; but it is worth noting that the global market size in 2016 increased by 8.6% year-on-year, which is the lowest growth rate in four years and is expected to continue to decline in the next few years.
In 2016, the overall scale of China's LED lighting market reached 457.6 billion yuan, a year-on-year increase of 15.35%, accounting for 65.4% of the world. The future proportion will continue to rise; in 2017, it will enter a low-speed growth cycle and enter the ranks of traditional industries; it is expected that 2016-2017, The market will show the trend of LED chip and lamp bead products continue to rise, while the price of end products such as lighting continues to decline.
Among them, LED chips continued to rise in price, while the upstream chip market further increased in 2016, and the top five chip companies accounted for 75% of revenue. Some chip manufacturers are withdrawing.
In terms of packaging, several large packaging companies continued to expand production in 2016, and the market share increased further. SMEs were forced to withdraw from the market. At the same time, the price of LED packaging devices rose steadily. It is expected that there will be room for growth in 2017;
In the application market, the market growth rate has slowed sharply, and the gross profit margin of the company has further declined. The market share of large enterprises in lighting and display applications has further expanded, and small enterprises have basically retreated in the segmentation field. Meanwhile, in 2016, domestic LED lighting The penetration rate has further improved, and the traditional lighting enterprises have basically been converted into LED enterprises; the LED filament lamp market is hot, and it has become a new profit growth point for lighting manufacturers.
For the challenges facing the LED industry in the future, Zhang Xiaofei said that there are four main challenges:
First, China's LED industry merger and integration. In 2016, 37 listed companies participated in M&A, down 30% from 2015.
Mergers and acquisitions are mainly based on complementary mergers and acquisitions, and the proportion of vertical integration is relatively small. At the same time, the rise of overseas mergers and acquisitions, the speed of the elimination of the industrial chain, and the decline in the proportion of cross-border mergers and acquisitions.
In the case of integration of the entire industry chain, lighting companies are mainly used, other midstream upstream layouts, and even a large part of cross-border investment layout, including new energy industry, education and so on.
Challenge 2: In 2016, the LED industry chain ushered in price hikes; from March 2016 to December, from raw materials, chips, packaging to lighting, etc., the price increase became the norm of the entire industry.
Challenge 3: In 2016, LED enterprises expanded their investment; in 2016, large and medium-sized enterprises including Huacan Optoelectronics, Sanan Optoelectronics, Aoyang Shunchang, and Mulinsen had different levels of investment expansion. The reasons are not only the demand for scale effect, but also the market demand.
Challenge 4, 2016 LED patent dispute.
Finally, Zhang Xiaofei interpreted the development trend of the LED industry in the middle and lower reaches of the market.
For the upstream market, it is mainly reflected in the bottom of cost mining, technology update, integrated positioning and stratification, and occupying the global market. The midstream market should focus on cost competition first, scale continues to expand, segmentation is king, and integrated supply alliance.
Among them, Zhang Xiaofei mentioned four areas of growth potential that are worthy of attention in the LED lighting market: automotive LED, UVLED, intelligent lighting, and plant lighting; for example, in the automotive LED field, the size of China's automotive lighting market in 2016 was 20.4 billion yuan. At present, the companies that have entered are mainly BYD Lighting, Hongli Optoelectronics, Ruifeng Optoelectronics and Xingyu.
Finally, in the downstream market, Zhang Xiaofei summed up the key words of the big enterprises, the outside of the company, the brand promotion, the tyrants of the tyrants, the smuggling of small and medium enterprises, and the subdivision of the subdivision.
"The big companies must first stabilize the camp in the domestic market, and they must first settle in the outside world. At the same time, they must make great efforts to go to the production cards and publicity, because they will fight for soft power in the future." Zhang Xiaofei said, "Doing the industry leader There is no need to always think hard, because the market is diversified and regional, and for SMEs, it should focus on segmentation and survive by innovation. This is the basic condition for survival and development in future competition. â€
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