According to data released by the High-tech LED Industry Research Institute (GLII), the total output value of China's LED industry in 2014 reached 344.5 billion yuan, a year-on-year increase of 31%. Among them, the output value of LED upstream epitaxial chip, midstream package and downstream application increased by 43%, 20% and 32% respectively.
Indoor lighting is the main engine for the rapid development of the LED application industry. The data shows that in 2014, the indoor lighting industry continued to maintain its growth trend in 2013. The annual output value exceeded 100 billion yuan, with a year-on-year growth rate of over 70%. Indoor lighting applications led the development of the entire LED application industry.
While the LED industry is growing rapidly, many problems that have hampered the development of the industry are also faced by people. Not long ago, the rumors that Guangzhou Juliang Optoelectronics owner defaulted on more than 200 million goods “running the road†by suppliers had added a shadow to the industry.
According to statistics, since September 2014, there have been many LED bosses running events such as Sichuan Yuanli Optoelectronics, Dongguan Yongxing Electronics, Zhongshan Hualiang Lighting, and Fengguang Legend, which have aroused social concern.
The frequent occurrence of running events has brought a major impact on the industry. The financing environment has deteriorated, and LED companies will become more difficult when they lend to banks or social financing.
For the packaging companies in the middle reaches, welcoming them in 2015 will be a period of intense competition. Zhang Hongbiao, research director of the high-tech LED industry, said that small and medium-sized packaging companies will face more brutal competition next year.
"Packaging companies have closed down more than 100 this year, and there may be about 300 bankruptcies next year." Zhang Hongbiao said, "The large-scale packaging companies that expanded production in the past few years are fully releasing capacity this year, and small enterprises are limited in technology. It is difficult to launch new products with higher gross profit in a timely manner, and the dilemma of not increasing profits without increasing profits will be further deepened in small enterprises. Once the downstream enterprises are closed down, they will be subject to joint risks."
When it comes to downstream application areas, Zhang Hong said that indoor lighting applications will be in a period of rapid development, and enterprises will not experience large-scale bankruptcies. However, due to the fierce competition in the whole downstream and the funding problem, there will still be many enterprises that will close down in other application fields in the future.
“The threshold of the downstream lighting industry is low. At present, there is no corresponding industry standard and entry threshold in China, and it is in disorderly competition.†BYD LED sales director Xiao Zhiyong told reporters.
Indoor lighting is the main engine for the rapid development of the LED application industry. The data shows that in 2014, the indoor lighting industry continued to maintain its growth trend in 2013. The annual output value exceeded 100 billion yuan, with a year-on-year growth rate of over 70%. Indoor lighting applications led the development of the entire LED application industry.
While the LED industry is growing rapidly, many problems that have hampered the development of the industry are also faced by people. Not long ago, the rumors that Guangzhou Juliang Optoelectronics owner defaulted on more than 200 million goods “running the road†by suppliers had added a shadow to the industry.
According to statistics, since September 2014, there have been many LED bosses running events such as Sichuan Yuanli Optoelectronics, Dongguan Yongxing Electronics, Zhongshan Hualiang Lighting, and Fengguang Legend, which have aroused social concern.
The frequent occurrence of running events has brought a major impact on the industry. The financing environment has deteriorated, and LED companies will become more difficult when they lend to banks or social financing.
For the packaging companies in the middle reaches, welcoming them in 2015 will be a period of intense competition. Zhang Hongbiao, research director of the high-tech LED industry, said that small and medium-sized packaging companies will face more brutal competition next year.
"Packaging companies have closed down more than 100 this year, and there may be about 300 bankruptcies next year." Zhang Hongbiao said, "The large-scale packaging companies that expanded production in the past few years are fully releasing capacity this year, and small enterprises are limited in technology. It is difficult to launch new products with higher gross profit in a timely manner, and the dilemma of not increasing profits without increasing profits will be further deepened in small enterprises. Once the downstream enterprises are closed down, they will be subject to joint risks."
When it comes to downstream application areas, Zhang Hong said that indoor lighting applications will be in a period of rapid development, and enterprises will not experience large-scale bankruptcies. However, due to the fierce competition in the whole downstream and the funding problem, there will still be many enterprises that will close down in other application fields in the future.
“The threshold of the downstream lighting industry is low. At present, there is no corresponding industry standard and entry threshold in China, and it is in disorderly competition.†BYD LED sales director Xiao Zhiyong told reporters.
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