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LED era of the advent of lighting industry accelerated concentration
- Oct 23, 2017 -

Lighting has always been a rigid demand, until Edison invented the electric light to form an industry. Light bulb products from the initial tungsten filament to energy-saving fluorescent lamps, and then to the current lights, lighting industry has also developed from zero to a multi-billion dollar level of the big market. 

In the era of incandescent lamps and fluorescent lamps, because of the need for manufacturers through the product design, manufacturing to ensure the stability and durability of the light source, the European and American companies with the accumulation of technology, as well as the history of the accumulation of brands and channels, the majority of the market, forming a Philips, GE, and Into the era of LED lights, in the engineer dividend and government to spare no effort to support, China in the technology gradually keep up with, and more than Europe and the United States and other developed countries, product quality is not worse than Europe and the United States, but lower cost, better service, so that from the chip, packaging to light source, the entire led industry chain has moved to China basically. 

Specialized division of labor system, the light source manufacturing into a simple assembly work, the European and American light source manufacturers have retreated, have withdrawn from the General lighting field. December 2016, Philips formally stripped the lighting business, August 2016, GE Lighting decided to terminate its business in Asia, February 2017, Osram sold the lighting business to the Chinese consortium. 

Domestic lighting market is huge. According to the data, China's 2016 led general lighting market reached 204 billion yuan, led penetration rate of 44%, the current use of LED lights and the traditional light bulb, expected in 2020, China's LED lighting penetration rate of 60%-70%, LED general lighting will keep double-digit growth for years to come. 

The lighting industry competition pattern disperses, the current industry Bibcock's market share rate is only about 3%, the reason mainly is because, in the traditional light source time, the light source by Philips, GE, Osram three big company monopoly, the lamp enterprise value-added low, is difficult to form the competitive power. China's mastery has broken the original competition pattern, greatly reduced the technical threshold of the light source, the industry chain has shifted the power of discourse to the lamp manufacturers closer to the terminal, and the lamp manufacturers have the opportunity to improve the market share through product design, channel management and brand marketing. 

On the other hand, with the increase of national income per capita, the quality of life requirements of people continue to improve, in the selection of lamps and lanterns more value is the brand and product design, Shanzhai product survival space is compressed, with the rising cost of raw materials, environmental protection requirements, many small factories have been forced to exit the market In fact, since the 2012 LED lighting penetration rate has been rapidly upgraded, the first echelon of the lighting company's market share has steadily increased, with the European and American manufacturers and Shanzhai small factory exit, the future of this trend is expected to accelerate.

 The U.S. lighting market after years of development, has formed Cooper, Hubbell, lighting and other lights, such as several tens of billions of revenue of the large-scale lamps manufacturers, into the LED era, in a more favorable competition, I believe that China will soon appear a even a few home with the international giants comparable to the leading manufacturers.

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