Ⅰ、Global LED lighting industry development
1、High concentration in the upstream of lighting industry chain, low concentration in the downstream
At present, LED has a mature production process, the industry chain has been perfect, product innovation emerge in endlessly, the application field is becoming more and more extensive.With the change of LED technology, lighting industry is developing towards integration.
2. The intensification of the whole industrial chain has been steadily improved
（1）Epitaxial chip: after the expansion of production, capacity digestion, the remaining to be a king
Since the fourth quarter of 2017, the entire domestic upstream epitaxial chip industry has ushered in a round of peak production, LED chip from full competition pattern to excessive competition pattern has become a fact. Combined with the current economic situation and industry environment, the situation of LED chip oversupply will not be effectively alleviated in the short term.
（2）Encapsulation: industry aggregation, bidirectional pressure, polarization
Encapsulation plate scale expansion on the whole situation in recent years, the first is based on a large number of downstream application demand, at the same time, with the further development of LED technology, make product pattern has been changed, middle especially lighting device packaging device in by upstream and downstream double oppression, downward price pressure is bigger, shipments of sluggish growth.The situation of increasing industrial concentration and sluggish market demand has further squeezed the living space of small and medium-sized packaging enterprises. In the future, after merger, reorganization and natural elimination, the trend of polarization will be more and more obvious.
（3）All supporting facilities: high cost, intensified competition, followed by the application
Industry competition and mutual penetration continue to intensify, and the rigid increase of various costs leads to weak profitability of various manufacturers. In the subsequent development, downstream lighting applications will be more in pursuit of intelligent system and high-quality products, and have higher requirements on the intelligence and high reliability of related supporting products.
（4）Lighting application: weak demand, intensive situation, dual track development
The overall lighting industry is in a period of deep adjustment in which internal and external demand is relatively weak. Industrial intensification will also lead to the development of lighting application manufacturers towards the dual track system of scale and differentiation. At the same time, as LED lighting products enter a relatively mature and stable period, the improvement of relevant standardization system and the acceleration of production automation process, the survival of the fittest and metabolism caused by this round of market shuffle will continue to promote the intensive integration of the whole industry.
Ⅱ、Development of LED lighting industry in China
1、The scale keeps climbing. In 2018, the total output value of China's semiconductor lighting industry reached 73.74 billion yuan, up 12.8 percent year-on-year.
The scale of LED lighting industry in China（One hundred million yuan）
2、Permeability increases year by year. LED lighting products account for 70% of total lighting sales in China.
China's LED lighting penetration rate has increased significantly
Ⅲ、The impact of the COVID-19 outbreak on industry
1.The core of the impact on the industry lies in capacity and capital
First of all, it is very difficult for manufacturers to resume production. The conditions of manufacturers at each end of the industrial chain are also different, resulting in inconsistent resumption time, which affects the smooth operation of the entire supply chain. In addition, the continuation of the epidemic makes it impossible for manufacturers to operate normally, but the corresponding labor costs, loan interest, site rent and other expenses will continue to affect the financial situation of manufacturers.
2.How to view the COVID-19
The impact on the manufacturing sector is not as dramatic as in the services sector, but it will undoubtedly be a comprehensive test of the management and operation capabilities of lighting manufacturers and their reserves. But in the final analysis, for lighting products with the properties of rigid demand, the epidemic will eventually pass. It will not eliminate the demand, but just lag the demand. In a sense, this outbreak is a threat to all enterprises, to those who should have closed down long ago, forcing you to close down; The transformation of the long overdue, forced you to transform; To those who have been hesitant about emerging industries, force you to enter. In this case, each lighting manufacturer must be able to clear positioning, focus on the main business; Return to reason, cautious expansion; Let go of anxiety and embrace change.
Partial data sources：「LEDinside - China LED Online」and「China Industrial Information Network」Web site