With the background of the global economic adjustment, domestic LED lighting industry cannot be immune from the invasion from international LED STREET LIGHT enterprises and competitions from domestic rivals. Some LED companies indicated that LED lighting industry will greet a rebound this year after hard times in the latter half of 2011. But this sign is unconspicuous. As the market competition intensifies and homogenization of products is increasing, cost of production will be raised and meanwhile prices will be dropped. Homogenization is no doubt the final result for every industry. Thus experts reckoned that a further concentration will be a main direction for domestic LED lighting industry and only giants can survive and win at last.
According to the statistics form National LED Engineering Research Institute, China has more than 5000 LED LIGHTS companies presently, 1/5 of which are packaging companies. Most competitions are concentrated in midstream and downstream companies. The upstream LED chip manufactures are scarce in China. More than 80% chips need to be imported from outside, especially for high power LED chips.
In the first quarter of 2012, the economy recovery stimulated the pick-up of LED demand, out of the shadows in previous year. In 2011, the continuous fluctuations in LED demand and together with the vigorous expanding of capacities caused the sharp fall in prices. The entire industry profitability is also suffered a substantial decline. With the recovery of demand in backlighting and lighting market, the decline in LED LIGHTS prices eased gradually. Take Taiwan for instance, the rebound rate for LED chips, package and backlight module market is respectively 17%, 20% and 5% in March this year. Chinese government intended to seize this moment to adopt a comprehensive program to further promote the domestic LED lighting industry. And LED backlight will be a breakthrough. Experts owed this to the vigorous development of smartphones. And the implementation of Guangdong Public Lighting Program is expected to be another catalyst. This implies that government interference will be a crucial factor in the rebound of LED lighting industry. Among various domestic LED PANEL lighting enterprises, those who owned independent selling channels and original design concepts will have more chances in future. This rebound may be the second life for Chinese LED lighting industry.