Security Exhibition Network Market Analysis] Looking at the global economic situation, there are no obvious signs of recovery, and global trade growth is slow, overall in a structural adjustment phase. However, as countries around the world increasingly focus on energy conservation and emission reduction, LEDs, as a new type of energy-efficient lighting product with great advantages, have become a key promotion product for energy-saving lighting worldwide. This has led to rapid development in the global LED lighting market, with the global LED output value reaching 62.9 billion US dollars in 2018.

China's LED lighting industry has shown stable growth with an overall upward trend.

After more than 40 years of development, China's LED lighting industry has initially formed a relatively complete industrial chain, and the industry has developed rapidly. Even after experiencing high-level development with a continuous growth rate of over 30%, and entering a general slowdown phase, the export growth rate of LED lighting products is still higher than the national average export level of various industries.

As international giants divest from general lighting business, China's output value will continue to increase, and the global market share is expected to reach 61% by 2020. According to data from GGII, China's LED lighting output value is expected to reach 445 billion yuan by 2020, an increase of 14.1% year-on-year.

With the gradual deepening and penetration of concepts such as environmental protection, energy conservation, and green lighting, LED lighting technology, which combines high efficiency, low consumption, safety, reliability, convenient management, and long service life, has been widely used in all aspects of the lighting industry in recent years. At the same time, the national green lighting project and related policies are also directly driving the rapid development of the LED lighting market.

The market is mixed, and the industry will accelerate integration in the future.

China's LED industry is in a stage of rapid growth, with continuous expansion of scale and increasing number of enterprises. However, many enterprises are small and medium-sized, with weak technical and financial strength and insufficient R&D investment, resulting in serious product homogeneity. Enterprises mainly seize the market through price competition, making the industry development chaotic.

The "lighting function" is the basic core essence of lighting products, but most lighting products on the market are almost identical, with little innovation. In a homogeneous environment with diversified choices of similar products, companies are prone to a "tough competition" situation when facing competition, leading to vicious competition, which is not conducive to the long-term healthy development of the LED lighting industry.

In addition, the LED lighting industry has gradually shown a trend of market saturation and decreasing demand, leading to overcapacity. It is undeniable that in the rapidly developing environment of LED enterprises, the problem of product homogeneity will inevitably cause a large number of enterprises to be eliminated. This phenomenon is both a huge challenge and a rare opportunity for enterprises.

With the continuous development of the industry, the market share of enterprises with strong technology, large strength, and high brand awareness will continue to rise, and small enterprises lacking technical advantages and experience accumulation will be gradually eliminated. In addition, the government's guiding function will also be clarified, promoting industry integration and the survival of the fittest among enterprises by strengthening the construction of industry standards, and supporting leading enterprises to become stronger and larger.

Conclusion: To become bigger and stronger, LED lighting companies must understand the mechanism of LEDs and continuously innovate and improve product quality and details based on market changes to launch products suitable for the market. Only by grasping the essence of lighting, hitting users' pain points, and daring to make breakthroughs and innovations, can we successfully seize the market. It is worth mentioning that intelligent equipment based on the continuous evolution of Internet of Things technology will push LED intelligent lighting to a new level, and perhaps in the near future, LED lighting will enter thousands of households.

(This article is based on information from Forward Industry Research Institute, Simsun, Gaogong LED, New Industry Think Tank, OFweek Semiconductor Lighting Network, edited by Security Exhibition Network.)