LED industry

Special lighting market, such as high speed rail traffic lighting, subway, lighting, automotive lighting market has a very large market demand.

Lighting fair in Frankfurt, Germany, for example, the year before the fair there is at least 50% of the traditional lighting products, last year, the traditional lighting is less than 10%, the exhibition this year, basically no traditional lighting products, all LED lighting. LED lighting is the trend of The Times, the traditional lighting companies to the LED is imperative. Almost all traditional lighting companies in guangdong and even the whole country transition LED lighting, LED lighting field.

Despite the LED lighting market scale is expanding, but industry homogeneity serious competition, product differentiation between enterprises is not large, eventually LED to a price war. And in the process of price competition, all of the participants less than originally should obtain reasonable profit a guarantee. Different from traditional lighting and LED industry, the characteristics of flexible, rapid technological and changing price determines the enterprise on-demand production, zero inventory, it also to enterprise technology development and production capacity has brought certain requirements.

Superior bad discard the survival of the fittest, this is the natural law of industry development. In the next few years, the LED industry competition intensifies, there will be a part of the enterprise is unable to adapt to development needs and appear “shut down and go” phenomenon. LED companies to become bigger and stronger, must search for differentiation of development path, and create their own cost advantage. Along with the cost advantages of LED industry, there will be a large number of outstanding enterprises such as huawei, zte communications field.