Overcapacity of production capacity enterprises to watch the LED industry market prospects

In recent years, the LED industry has been growing at a high speed. However, since last year, some enterprises have closed down. Shenzhen has suddenly abolished the LED industry development plan at the beginning of the year, making the LED overcapacity theory cover the whole industry. Will LED be the next PV industry?

As the "City of LED", Shenzhen was pushed to the cusp. With questions, the reporter interviewed some industry and industry experts. They believe that there is a significant difference between the LED industry and the PV industry. The uniqueness of the LED industry has made the industry capable of stepping out of the dilemma of the PV industry.

"LED is not the second photovoltaic industry"

"China's LED industry is significantly different from the photovoltaic industry in terms of industrial structure, market structure and industrial policies, and it is decided that China's LED industry is unlikely to repeat the PV industry's mistakes." Guangdong industry insiders clearly stated in an interview with this newspaper. Although LED and photovoltaic are both new energy emerging industries, LED applications are extremely broad, and it will not be the second photovoltaic industry.

According to the above-mentioned person, in terms of technical risks, the high-purity silicon crystal technology upstream of the photovoltaic industry is mainly controlled by enterprises in the United States, Germany and Japan, but China has continuously broken the technological monopoly of developed countries in the research and development of LED technology, greatly reducing The technical risk of China's LED encountering the dilemma of photovoltaics. In addition, the domestic market share of domestic LED lighting products reaches 50%, the dependence on foreign markets is low, and the huge difference in market structure also reduces the risks caused by external impacts on the development of China's LED industry.

He said that in addition to broad application prospects in landscape lighting, signage and indicative lighting, indoor lighting, etc., LEDs also have broad applications in agriculture, automotive electronics, optical communications and other fields, in order to improve LED capacity utilization and Providing protection for reducing the risk of the LED industry.

Shuffle intensifies into deep integration

LEDs are known as the second revolution in the lighting industry, and they are unique. However, after the closure of Lei Xing Optoelectronics, Vision Optoelectronics, and Haobo Optoelectronics last year, the market’s worried attitude towards LEDs has not disappeared. How do people in the industry view this phenomenon?

“In the early stage of any emerging industry development, there will be a lot of investment.” Yao Qiu, deputy general manager of Shenzhen Bangbeier Electronics Co., Ltd., told the Shenzhen Business Daily that a few years ago, China’s LED industry and photovoltaic industry were strongly supported by the government. The scale has expanded rapidly, and due to limited market capacity and excessive expansion of production capacity, overcapacity has occurred in some parts of the industrial chain. However, unlike the overcapacity of the photovoltaic industry, the current LED industry's production capacity is structural rather than the entire industrial chain surplus. With the release of downstream market demand, this structural contradiction will be alleviated.

The reporter found that a more common saying is that the LED industry has entered a period of deep integration, and low-level, uncompetitive small enterprises will be more and more eliminated, just like the past home appliance field. "This is also the market's adjustment and revision of the overcapacity problem in the industrial chain." Yao Qiu believes.

Corporate music to watch the market prospects

Talking about the prospects of the LED industry, most companies are still optimistic about the market in the next two years. The policy is warm and the wind blows, giving them more confidence.

With the official implementation of the government's relevant support policies, the domestic LED lighting market will grow exponentially in the next three years, and the domestic LED lighting market is still in its infancy.

(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)

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