LED civil market demand strong

At the recent Guangzhou International Lighting Fair, the reporter learned that industry professionals including LED listed companies such as Ruifeng Optoelectronics, Hongli Optoelectronics, and Tongfang Electric Co., Ltd. invariably used “above expectations” to describe the recovery of the LED market this year. The optimistic situation is in sharp contrast to last year's industry's deep shortage of overcapacity. However, the reporter learned from the high-level LED companies that the strong rebound in this round of the market is more in the lighting application market, and its hot focus is reflected in a large number of distribution channels. In terms of engineering orders, the supply and demand relationship of the industry is still not significantly improved.

Lighting application market orders are scheduled for two months

The reporter learned from the just concluded 18th Guangzhou International Lighting Exhibition that since the first quarter of this year, the overall market demand for LED has been strongly enhanced. From the end of the first quarter, the orders of enterprises in the industry chain are very saturated.

According to Wang Lianghai, the vice president of Tongfang, an upstream chip manufacturer, the company’s machines are now operating 24 hours a day, and customers have to queue up for chips. The packaging companies in the middle reaches of the industry have said that they are currently facing the problem of continuous heating up of downstream demand, order queuing, and short-term memory supply of upstream chips. Gong Weibin, chairman of Ruifeng Optoelectronics, which specializes in LED backlighting, bluntly stated that the outbreak of this round of demand was one year ahead of its expectation. It is expected that this year's industry growth rate will reach 15%, and in 2014 it will even reach 40%.

“This year is the best year for the LED market. There will be a blowout situation.” Zhuo Bingzhong, deputy general manager of Qinshang Photonics Co., Ltd., said that the company’s order volume has been ranked two months later and it is the first time in history.

It is worth noting that unlike the industrial virtual fire brought about by the previous government's importation, the hot LED market during the year was caused by the surge in demand for lighting applications and a large number of distribution channels. LED Institute experts believe that the technical upgrading of products, the stability of the quality, and the price and cost have bottomed out, prompting the rapid increase in demand for lighting applications.

However, many senior LED companies also agree that it is not yet possible to prove that the industry is about to usher in explosive growth. In the second half of the year, whether or not the industry orders maintain the economy is particularly critical.

"Now everyone is distributing to the channel. If the third and fourth quarters continue to grow, then the LED's penetration rate will rise sharply." Gong Weibin said. On the contrary, if the chairman of Hongli Optoelectronics, Li Guoping, said that if the industry growth falls in the third quarter, the problem will be big.

The engineering lighting market is not booming

Compared with the optimism of the civil market, the current situation of engineering lighting is another scene.

"Now everyone's focus is on channels, including a lot of breakthroughs, market acceptance, and prices. This price even reaches traditional lighting fixtures. This is the reason why circulation channels are thriving. We are doing engineering lighting and there has been no blowout growth." Xu Min, deputy general manager of Guangyu Lighting, said that because there are not too many new projects, LED projects in the recovery, but not as hot as lighting applications, but the competition is fierce.

This difference can also be seen in the attitude of mid-stream packaging companies. If downstream customers mainly use engineering orders, package companies will remain relatively cautious; if customers mainly sell wholesale or retail channels, they will be relatively optimistic. Expansion preparation. Mr. Zhu Bingzhong, deputy general manager of Qinshang Optoelectronics, who frequently showed orders for municipal LED lights, also stressed that most of the company’s orders are currently commercial lighting. “There are more volatility in the municipal decision-making process, so the greater development is in business.”

Some industry participants bluntly stated that the field of engineering lighting is more about the ability of Nathan. The reporter noted that LED companies with state-owned assets in this area have attracted considerable attention. Taking the local market as an example, Guangdong LED public-sector lighting market (the main beneficiary is LED street lamps) has an estimated market capacity of more than 6 billion yuan. The Guangzhou State-owned Assets Supervision and Administration Commission under the Guangzhou State-owned Assets Supervision and Administration Commission, Guangri Electric Co., Ltd., has been selected as the first batch of six green lighting demonstration cities in Guangdong Province to use LED street lighting products. It is expected to become the main force of this market. Shenyin Wanguo analyst Li Xiaoguang predicts that “this year the company has entered the harvest period in the LED field and the revenue scale is expected to increase from about 50 million yuan last year to about 250 million yuan.”