LED general lighting demand growth
Benefiting from LED technology advancement and cost reduction, LED general lighting industry demand and market scale continue to grow, and the development speed of the Chinese market is more prominent. According to CSA data, the scale of China's general lighting market in 2017 was 212.3 billion yuan, a year-on-year increase of 21%, compared with 7.8 billion yuan in 2009, a 27-fold increase, CAGR=39%, which is the highest growth rate in the entire LED industry chain. In the future, as the penetration rate of LED lighting continues to increase, industry demand continues to grow, with home and commercial lighting being the main drivers.
China's LED general lighting industry is currently showing a more market-oriented competition. Major companies include overseas manufacturers and domestic LED general lighting suppliers. In recent years, due to the high conversion cost of LED products and the disadvantages of China's domestic channels, international LED manufacturers have shown a trend of exiting the general lighting market. According to the company's financial report data, the current top two LED general lighting markets in China are Op Lighting (30.140, 0.13, 0.43%) and NVC Lighting. According to CSA data, the scale of China's LED general lighting market in 2017 is 212.3 billion yuan, Op Lighting 2017 The income is 6.96 billion yuan and the market share is 3.3%. NVC Lighting (2222.hk) has a revenue of 4.074 billion yuan in 2017 and a market share of 1.9%, which means that the industry CR2 <6%, and it is currently in a very scattered competitive landscape.
We judge product integration design, brand and channel to drive industry concentration gradually: (1) LED lighting integration and customized design will promote the integration of LED light source and lighting industry itself, future business integration company has more advantages The industry barriers continue to improve; (2) in the process of consumption upgrading and industry maturity, the brand will play an increasingly important competitive factor; (3) the channel has strong industry barriers, and the scale effect of the channel is significant, One of the core competitiveness of suppliers in the industry.