During current years, various aspects of China’s LED industry are packed with industry and non-industry investors and nearly 4000 enterprises found only in the shop LED lighting application side in the past two years. Flowers are flourishing before the spring really comes, which is quite appropriate to describe the status of this industry. On one hand, market participants become more and ambitious; on the other hand, the industry chain develops unevenly. What investment opportunities lie behind this glittering industry? PV industry and wind energy investment boomed a few years ago and now retreat. What lessons can be left to this wave of LED Lights market participants?
Semiconductor lighting is recognized as one of the most promising technology of the 21st century, opening the third revolution in shop LED lighting of the human society, bringing huge economic benefits. Over the past decade, the average annual growth rate of the global LED downlight market’s scale is over 20%; the growth high brightness LED market is more rapid, the average annual growth rate 46% from 1995 to 2005. The size of the market in 2008 reached 5.1 billion U.S. dollars, accounting for the ratio of the LED market more than 80 percent growth from 40% in 2001, with a conservative estimate that in 2012 the market size is expected to reach $ 11.4 billion.
In this industry chain which is full of highlights and value, the upstream firm took more than 70% of the profits, which is a capital-intensive, high technology content, high rate of return link. The core patented technology of upstream is concentrated in Japan Nichia (Nichia), the United States Corey (Cree), Germany Osram (Osram), and a small number of overseas giants, belong to a typical oligopoly business (Schedule). In the fields of epitaxial wafers and chips, the U.S. and Japanese companies take a monopoly advantage.
Shop LED lighting growth in the mainland should follow the bottom-up path. To think about the early industrial mode, it may be worth LED domestic enterprises to seize market opportunities and grow their own strength.
The LED street lighting market in the turbulent perhaps is a new feast for Chinese manufacturing enterprises. PE should be rational in this area to avoid irrational thinking of the investment in solar energy industry market. On the basis of market-oriented principles to select the appropriate enterprises, it will be illuminate the manufacturer and PE future.