LED lighting manufacturing industry competition situation

Globally, the number of participating companies in the LED lighting industry chain is pyramid-shaped. Upstream substrate fabrication, epitaxial growth, and chip fabrication are technically and capital intensive, and the number of companies competing for competition is relatively small. The upstream is not only the bottleneck of technological progress, but also the key to the development of the entire LED lighting industry. Its enterprise resources are concentrated and the profit margin is also high. The entry barriers for midstream packaging and downstream applications are relatively low, and the number of enterprises participating in it is relatively high. The margins are uneven and the profit margin is relatively low.

At present, China has become the world's largest producer of lighting appliances and the second largest exporter of lighting appliances. The main exporters of LED lighting are the United States, Turkey, Germany, Japan, the United Kingdom, Canada, France, the Netherlands, Russia, Thailand. India, Brazil, etc. Now the industry is in the stage of rapid growth, but the industry concentration is low, the manufacturers of lamps in the market are generally small, mostly in the stage of “OEM” production and OEM, and the establishment of independent brands and global branding are still in their infancy. At the same time, the comprehensive strength of most domestic enterprises is not dominant, and there is no strong technical strength to support. Specifically, the domestic LED lighting industry competition can be divided into three levels: Japanese and American companies and Taiwanese manufacturers in the mainland of China, the factories in the mainland rely on the product's good stability and consistency, occupying the high-end market; With high product cost performance, the company has strong competitiveness in the mid-end market; other small domestic enterprises that do not have research and development strength mainly concentrate on low-end markets that are very sensitive to prices at competitively low prices.