The next three years is the key period for LED breakthrough

Since 2013, LED companies have had full orders, increased product output, and increased sales. Enterprises have been operating at full capacity or overload, and capacity utilization has gradually increased. The LED lighting products have become the development direction of the next generation of new light sources. The products have been further promoted through demonstration applications, and the effect of energy saving and emission reduction has become increasingly significant. Under the influence of the above-mentioned multiple factors, the LED industry boom will rebound this year, which will benefit the overall performance of LED concept stocks in 2014.

CSA Research analysts said that in 2014, China's LED industry will continue its upward trend in 2013 and usher in a new round of growth. It is expected that the domestic semiconductor lighting industry will continue to maintain rapid growth in 2014, and the estimated growth rate will reach 40%. Moreover, with the high boom and high growth rate of the LED industry, it will inevitably lead to a new round of industrial investment. Judging from the overall development of the semiconductor lighting industry, whether a dominant company can timely integrate its capital, technology, and channel advantages, seize market opportunities, quickly expand its market layout, and become bigger and stronger, it is a key factor in whether it can emerge from the global competition in the next three years. Otherwise, the market will be eliminated.

At the same time, according to the “China's Roadmap for Phase-out of Incandescent Lamps”, on October 1 this year, China will ban the import and sale of incandescent lamps for general lighting of 60 watts or more. From October 1, 2016, the import and sale of incandescent lamps of 15 watts or more will be banned. This basically means that the incandescent lamp will be completely shut down and banned. In the next two years, the demand for LED bulbs in China will welcome To explosive growth. In addition, the rapid increase in the demand for foreign LED lighting products, but also for the LED products, LED export companies accounted for a higher proportion of domestic sales of LED companies have made a certain contribution to the thicker performance.

According to the Energy Independence and Security Act promulgated by the United States in 2007, since January 1, 2014, the best-selling 40-watt and 60-watt incandescent lamps in the US market have ceased to be sold. After phase-out of incandescent lamps, the United States encourages the use of energy-efficient compact fluorescent lamps, LED lights, and other energy-efficient bulbs. At the same time, in Asia, South Korea, Thailand, and the Philippines have also taken steps to promote the use of energy-saving light bulbs instead of incandescent light bulbs. As countries began to completely disable incandescent lamps, light source replacement was officially launched in 2014.

For future LED lighting industry investment prospects, Shenzhen Jingtai Optoelectronics Gong Wen general manager believes that in the long run, the LED industry because of the theme of the era of environmental protection, the country is also the energy-saving environmental protection industry as the seventh largest strategic emerging industry to carry out Support, such as Guangdong Province, the LED industry as the eighth largest strategic emerging industries to support. Therefore, from the perspective of the development of the entire industry, LED as an irreplaceable advantage in the field of energy conservation and environmental protection, coupled with the support of national policies, etc., the future LED industry has great room for development. In particular, the current market penetration of LED lighting is still not very high, so that the future LED industry still has great investment opportunities.

The general manager of Shenzhen Geliang Optoelectronics Liu Xiao also said: At present, the development speed of the LED industry is relatively fast, and the growth space of the industry is also very large, and the LED industry is still optimistic about the future development prospects.

At the same time, Jingtai Optoelectronics General Manager Gong Wen also believes that in the future investment in the LED industry may face two investment risks, first of all, to face the risk of excess investment in the market. If large-scale capital inflows into the LED industry, it will lead to an expansion of production capacity, which will easily lead to an imbalance in supply and demand and a situation of overcapacity. Second, for SMEs, they will face a risk of profitability. Since SMEs may be at a competitive disadvantage in the future market competition advantages compared with leading enterprises, their profitability may have greater risks.

Director Luo Xuecheng of Zhejiang Deep Optoelectronics Strategic Development Center stated that in the LED industry, it has entered the stage of substantial competition in technology, brand, scale and channels. The winners and winners in this stage will be leading enterprises with certain competitive advantages. There will not be many such leading enterprises, and a large number of them will absolutely be eliminated within the next three years. However, from the overall development of LED industry, people's awareness of energy conservation and environmental protection has been enhanced, energy saving and environmental protection products have received more and more attention, LED market share has become higher and higher, the future will show an explosive growth, LED production capacity is also It will be further released and the scale of the industry will be further expanded. Therefore, "the reality is cruel and the future is better." Therefore, for many companies that do not have a competitive advantage, it will be the end of the day, so "investments need to be careful."

The general manager of Geliang Optoelectronics Liu Xiao also believes that in the short term, the LED industry may still face a situation in which production capacity exceeds demand. Therefore, investment in the LED industry should be cautious.

CSA Research analyst pointed out that China, as one of the world's major LED production and consumption countries, China's semiconductor lighting industry has become one of the fastest growing regions in the global lighting industry transformation and upgrading, and has a strong foundation for development. Especially in 2013, China's semiconductor lighting industry as a whole warmed up, LED functional lighting market started quickly, can be said to usher in the spring of LED lighting.

Coupled with the continuous support of national policies and further market demand, the overall prosperity of the LED industry has been continuously improved, the LED industry ushered in a major historical opportunity, will have a huge investment opportunities. However, judging from the overall development of the semiconductor lighting industry, whether a dominant company can timely integrate its capital, technology, and channel advantages, seize market opportunities, quickly expand its market layout, and become bigger and stronger, is it a breakthrough in the next three years? Achieve the key factor of turning gorgeously into global competition, otherwise it will be eliminated by the market. Therefore, when choosing to invest in the LED industry, it is still necessary to conduct a thorough investigation and be cautious.