What Is The Future Direction Of Global LED Lighting And Display?

- Sep 06, 2018-

With the promotion of energy conservation and environmental protection concept nationwide, the opening of general lighting market drives the growth of the whole LED industrial chain.

The LED industry has already or is expected to show some important features in 2015.

By seizing the opportunity, domestic LED enterprises will achieve leapfrog development after technological breakthrough.

 1智能照明

1. Intelligent lighting is gradually approaching, and indoor lighting applications such as commercial lighting and private lighting accelerate penetration

 

According to the 2015 global LED lighting trend report released by an agency earlier this year, the global lighting market will reach 82.1 billion us dollars in 2015.

The LED lighting market will be $25.7 billion, with a market penetration rate of 31 percent.

1. Intelligent lighting

As for whether smart lighting can subvert traditional lighting models, one research institute said that the essence of customer demand is lighting itself, which is dominant and will not change in the long run.

The first task of intelligent lighting is how to provide more comfortable and high-quality lighting environment.

At the same time, customers require the use of intelligent lighting products to be simple rather than complex. Therefore, at the current stage, intelligent lighting is not to subvert or replace traditional lighting, but to serve as an effective supplement, mainly to meet some customers with intelligent requirements for lighting.

Smart lighting is expected to account for 30% of total demand over the next decade.

 

In 2014, the rise of mobile Internet and smart devices created a smart storm in the lighting field, which helped form a breakthrough in the high-end private lighting market.

In the future, users can control home lighting environment through mobile terminals, customize scene application, and realize intelligent control of lighting equipment.

At present, many lighting manufacturers, including philips and osram, are laying out the smart lighting area.

Among them, philips launched HUE series intelligent lighting products as early as 2012, focusing on humanized functions such as time-limited switch, theme transformation and application reminder, which has a good user experience.

Currently, Hue has received high user rating on both amazon and Apple Store, and the Apple Store alone has shipped up to 3 million PCS per year.

With the rapid rise of smart home in China, smart lighting will completely change the lighting use habits of the whole human, and will greatly improve the quality of human life.

 

In consideration of the factors such as green environment protection, energy saving and efficiency enhancement, the municipal traffic lighting has become the earliest subdivision of LED lighting products to enter and form large-scale application.

Since the "ten cities ten thousand" project started in 2009, the construction of LED road lighting has been in full swing, and the market penetration rate (the number of installation) of LED street lamps in China has been continuously improved.

According to market research agency estimates that 2015 LED lights in China is about 23 billion yuan, the size of the market of LED road lighting products in China's overall market penetration will be more than 45%, as prices fall, the improvement of the channels as well as increasing consumer awareness of the future, a people such as indoor lighting market will fast start, become pull the LED lighting market in 2015 the mainspring of sustained high growth.

 

2. Small spacing LED display is promising

 

LED display is a new display technology developed rapidly in the late 1980s in the world. It has experienced the development process from monochrome and dual-color graphic display to today's full-color video display.

The earliest single and two-color LED display can only display text information, which is mostly seen on the integrated information display screen of bus hubs such as airports and railway stations, as well as business halls such as Banks and telecommunications.

The appearance of full color screen marks that LED display has officially entered the era of image.

Through the red, yellow, blue three primary color chip encapsulated in the same lamp bead to achieve a single pixel point (lamp bead) display full color function.

In the early days of full color LED display screen, due to the large spacing between encapsulation lamp bead to screen resolution is low, only for display and only appropriate to watch over a long distance, so do outdoor display full-color LED display screen from the earliest start infiltration, commonly found in large outdoor advertising display, sports venues live events, and the background of the stage show, etc.

 

With the constant maturity of LED packaging technology, the size of the package device is gradually reduced, and the distance between pixel points is gradually reduced from the previous 10mm to about 2mm, which is suitable for close viewing.

Through comparison with the existing indoor large-screen display technology, we believe that the LED small-spacing display will step into the room from outdoors, and gradually replace the existing DLP and LCD splicing screen, becoming another killer application in the field of indoor large-screen display.

According to the market research and forecast report of China's LED display industry 2013-2017 released by a research center, the total size of China's small-spacing display market in 2013 was 500 million yuan, which increased more than threefold in 2014 to reach 2 billion yuan, while the market will exceed 10 billion yuan in 2015-2016.

 

3. There are alternative opportunities for domestic enterprises with LED backlight

 

Since Sony introduced the first LED backlight LCD TV in 2004, LED backlight has quickly occupied the market due to its advantages of low energy consumption, high picture quality, long life and environmental protection.

At present, in the backlight of small and medium-sized tablet PC, the LED penetration rate is close to 100%, and in the aspect of smartphone, the LED backlight penetration rate has reached about 80% (the remaining 20% of the market is mainly occupied by samsung's OLED screen).

In large backlight areas such as NB/PC Monitor/LCD TV, the penetration rate of leds is also close to 100%.

Although the overall demand for LED backlight is close to saturation and the market growth is limited, there are still alternative opportunities for domestic manufacturers of LED backlight packaging.

First, domestic packaging manufacturers technology has caught up, cost-effective advantages began to highlight;

Second, the rise of downstream brand manufacturers also led to A shares of backlight packaging corporate performance steadily improved.

Global LED backlight packaging manufacturers, especially large backlight, mainly in Taiwan, Japan and Korea.

In recent years, the product performance gap between the mainland and Taiwan manufacturers has been narrowing. In addition to the manufacturing cost advantage, the cost performance of LED backlight components in China has been continuously improved, gradually replacing the market share of Taiwan, Japan and South Korea manufacturers.

 

Secondly, China is the main production base of TV, mobile phones and notebook computers. Xiaomi, huawei, lenovo and other mobile phone manufacturers have ranked among the top five in global shipments.

TCL, hisense, skyworth, kangjia and other TV manufacturers have also ranked among the world's top 10 in shipments.

Domestic brand manufacturers in the technical performance of certain premise, naturally will choose the mainland packaging enterprises.

In terms of small and medium-sized sizes, xiaomi, huawei and lenovo have gradually adopted domestic LED backlight devices since 2013, and the penetration rate is gradually improving.

In terms of large size, China's 4 big TV manufacturers have started to fully use domestic large-size LED backlight devices as early as 2012, and the application proportion is gradually expanding.

Therefore, with the backlight market nearly saturated, we believe that the rise of Chinese brands such as LED backlight in 2015 is conducive to accelerating this structural change in the process of domestic substitution.

 

4. Emerging brands layout e-commerce channels, and business model innovation drives LED lighting enterprises to jump out of the red sea

 

Promoting LED lighting products through e-commerce channels can significantly reduce sales costs and cater to young consumers.

As for the emerging LED lighting brand, due to the lack of interest disputes and pricing issues with traditional physical channels, it has a stronger willingness to open up e-commerce channels, and its development pace will be faster. The O2O model (combined online and offline marketing) is also growing rapidly.

In order to cope with the impact of e-commerce on physical channels, under the active promotion of manufacturers, many dealers try to integrate online and offline sales resources by combining e-commerce with physical channels.

Local merchants provide after-sales service by entering into e-commerce, placing orders online and ordering offline, so as to achieve the close integration of physical stores and e-commerce.

At the same time, the EMC model has made rapid profits in the LED commercial field, product price reduction and energy efficiency improvement, all of which have contributed to the rapid breakthrough in the commercial LED lighting market.

The centralized management of lighting functions in the commercial sector has LED to the rapid rise of smart lighting and EMC mode, and the sales of smart power supply has also been driven by commercial LED lighting. It is estimated that the market size of China's smart LED lighting power supply is expected to reach more than 2 billion yuan in 2015, which has maintained explosive growth for three consecutive years.

In terms of export, due to the relatively stable price of international LED products, domestic LED lighting enterprises can make use of their own technology and manufacturing advantages to OEM for global brands, so as to gain profits in manufacturing, focus on export and share the global market.

 

5. M&a and restructuring is an important feature of LED lighting industry in 2015

 

As early as January this year, LED lighting industry related concept stocks more than 80.

Among them, there are 22 enterprises listed through the concept of LED industrial chain, which are LED chip, packaging, display screen, outdoor lighting, supporting materials and supporting equipment.

In the LED lighting industry gradually mature process, merger and acquisition integration is an inevitable process.

In 2015, the merger, purchase and integration of LED industrial chain has or is expected to present the following characteristics: first, the overall m&a amount will exceed the previous years, and the number of m&a cases with a scale of over 1 billion yuan will increase;

Second, the key period of LED indoor lighting integration will come in 2015.

Third, the successful merger and purchase cases of sapphire and chip appeared in 2015.

Fourth, the traditional lighting enterprise development and merger;

Fifth, LED lighting industry merger towards internationalization.

Overseas m&a cases of LED lighting industry will increase in 2015. With the increased intention of domestic outstanding enterprises in the LED industrial chain to go abroad, the integration of overseas LED lighting industrial chain enterprises and channels has been put on the agenda.

With the intensification of competition in LED lighting industrial chain, enterprises are faced with greater competition pressure and survival pressure. Excellent enterprises in LED industrial chain need to change their concepts. Whether they can successfully apply merger and acquisition strategy is the key to their success in internationalization.