Prediction and analysis of the future export market trend of China’s LED industry
In recent years, the annual growth rate of the global LED lighting energy-saving industry output value has remained above 20%. According to relevant statistics, the global LED lighting market was approximately 10.4 billion US dollars in 2012, and is expected to reach 75 billion US dollars by 2020, accounting for 50% of the global lighting market share.
According to the “2013-2017 LED Industry Panorama Research and Investment Strategy Research Report” by China Research Institute PwC, the price of LED display screens continued to decline in 2012, with a year-on-year decrease of 15% -20% compared to 2011. The reason is that powerful large manufacturers hope to eliminate some small and medium-sized manufacturers through price wars. The decrease in prices further compressed the gross profit margin. At present, the gross profit margin of LED full-color electronic display manufacturers mainly based on channels has dropped to 10% -15%, while the gross profit margin of products in engineering channels is still above 20%. Industry insiders say that the LED display market has entered a period of consolidation. So, what is the development status of the LED display market? How is the development of the enterprise? What will be the future industry trends?
1、 Analysis of the Chinese LED Display Market
According to the “2013-2017 LED Industry Panorama Research and Investment Strategy Research Report” by China Research Institute PwC, most companies are optimistic about the prospects and future growth rate of the display screen market in 2012, and expect their annual growth rate to be around 50% in 2012. We believe that the annual growth rate of China’s LED display industry market capacity in 2012 will be around 25%, achieving steady growth.
1. Export Market Analysis
According to the “2013-2017 LED Industry Panorama Research and Investment Strategy Research Report” by China Research Institute PwC, the total export value of China’s LED display screens from January to August 2012 was 5163.896 million yuan, an increase of 30.62% compared to the total export value of 395.33801 million yuan from January to August 2011. In addition, there was a significant increase in export value in each month of 2012, with exports exceeding 700 million yuan in four months and reaching 726.3784 million yuan in August. With the further growth of the comprehensive strength of domestic LED display companies, the export market for LED displays will continue to grow in the future.
2. Domestic market analysis
In the domestic LED display application market, the current LED display market can be subdivided into entertainment rental market, advertising media market, information guidance market, sports event market, large-size TV market, and characteristic function market based on the target customers’ usage and functions. From the perspective of various segmented markets, under the promotion of policies and large-scale demonstration projects, the product penetration rate of the domestic LED display segmented market is gradually increasing, and the market capacity is constantly expanding. With the deep cultivation of LED display companies in their respective segmented markets and the decline in product prices, the size of the LED display market will maintain a steady development momentum.
2、 Analysis of the Scale of LED Display Enterprises
1. Overall situation
According to the “2013-2017 LED Industry Panorama Research and Investment Strategy Research Report” by China Research Institute PwC, there are currently over 1000 companies engaged in LED display application related businesses in China, including more than 400 large-scale enterprises, over 60 companies with revenue exceeding 100 million yuan, and 7 listed companies, namely Lehman Optoelectronics, Alto Electronics, Zhouming Technology, Liade, Lianjian Optoelectronics, Dahua Laser Group, and Dehua Runda Group. Among them, Dahua Laser and Dehua Runda are respectively involved in LED display business through their holding subsidiaries, such as Dahua Yuanheng Optoelectronics under Dahua Laser and Ruituo Display under Dehua Runda. In addition, companies such as Shenzhen Abison Optoelectronics are actively preparing for their IPO.
2. Industry Status
From the data of various listed companies, except for some companies whose LED display revenue decreased year-on-year in the first half of 2011, other companies have seen varying degrees of growth in their operating revenue in the LED display field. Lehman Optoelectronics has the most significant growth in the display field, with a year-on-year growth rate of 110.55%. In terms of gross profit margin, most companies have reported varying degrees of decline compared to 2011, mainly due to the continuous decline in product prices.
In addition, most listed companies utilize the resources of the capital market to expand their LED display production bases and build LED packaging production lines, which will intensify competition in the LED display industry, accelerate the integration and shuffling speed of the LED display industry, and squeeze the survival space of small and medium-sized LED display enterprises and LED packaging enterprises.
3、 LED display screens enter industry integration
The LED electronic display industry has entered a period of integration, and in the next few years, some small and medium-sized enterprises will gradually be eliminated. In the integration stage, LED electronic display manufacturers with technological and capital strength are expected to leverage the power of the capital market and their own technological and channel advantages to achieve rapid development. In the next 2-3 years, the concentration of the LED electronic display industry will rapidly increase.
Due to the maturity of the LED electronic display industry, its market size will maintain a steady growth trend. Industry insiders predict that the growth rate of the LED electronic display market will remain at 10% -20% in the coming years. The future profit growth of LED electronic display screens will mainly come from the traditional spray painting, neon lights, billboard replacement markets, as well as the multifunctional high-end LED electronic display screen markets such as high-definition, 3D, and intelligence.
The application of LED electronic display screens has become more widespread, and with the recovery of the economy, 2013 will be another year when both technology and market will mature for LED electronic display screens
3、 LED display screens enter industry integration
The LED electronic display industry has entered a period of integration, and in the next few years, some small and medium-sized enterprises will gradually be eliminated.
In the integration stage, LED electronic display manufacturers with technological and capital strength are expected to leverage the power of the capital market and their own technological and channel advantages to achieve rapid development.
In the next 2-3 years, the concentration of the LED electronic display industry will rapidly increase.
Due to the maturity of the LED electronic display industry, its market size will maintain a steady growth trend.
Industry insiders predict that the growth rate of the LED electronic display market will remain at 10% -20% in the coming years.
The future profit growth of LED electronic display screens will mainly come from the traditional spray painting, neon lights, billboard replacement markets, as well as the multifunctional high-end LED electronic display screen markets such as high-definition, 3D, and intelligence.
The application of LED electronic display screens has become more widespread, and with the recovery of the economy, 2013 will be another year when both technology and market will mature for LED electronic display screens
4、 New Trends in the Development of LED Industry
1. Deepening of product technology and diversification of products
The technological foundation and level of the LED display industry in Chengdu, Sichuan, China can be said to be quite advanced. The main products and key technologies are consistent with the advanced level of the international industry. However, the process level is relatively backward, and there are significant gaps in product standardization, whole machine system design, reliability, manufacturing processes, testing methods, and other aspects compared to foreign countries.
The continuous improvement of LED device technology and performance, as well as the rapid development of electronic technology, provide a solid foundation for the deepening and improvement of LED display products in Chengdu, Sichuan. At the same time, LED displays have been widely used in various fields of social life, and the development of the semiconductor lighting industry has brought good opportunities for the LED display industry. Therefore, the development prospects of the LED display market are optimistic.
Deepening the technological connotation, enriching the product system, diversifying products, and highlighting the advantages of leading products will be important trends in the development of the LED display industry in Chengdu, Sichuan.
2. Standardization of conventional products and specialization of products applied in specific fields
The promotion and implementation of relevant standards will promote the standardized development of LED display products. In conventional LED display products, standardized display devices and control systems will be more widely adopted, and integrated LED display products will occupy a dominant position in the industry. The specialized division of labor in the production and market technical services of standardized LED display products will be more apparent. In the field of professional applications, LED display products will continuously improve their level of specialization to meet the needs of professional applications. Specialized products that combine application requirements will expand to form new products and application areas for LED displays, such as large-area LED displays in urban lighting projects, LED displays in sports venues, and LED displays in transportation fields.
3. Reasonable division of labor within the industry and the formation of a new industrial pattern
With the development of technology and market, China’s LED display industry will gradually improve and have reasonable division of labor in the process of adjustment, forming a new industrial pattern. The formation of leading enterprises in LED device production and backbone enterprises in display product production in the overall industry chain will redefine the division of labor between upstream and downstream industries, highlighting specialized division of labor and collaboration. Perhaps in the early stages of the development of the semiconductor lighting industry, the definition of specialized division of labor and collaboration between LED device manufacturers and display product manufacturers was relatively vague. However, with the expansion of the market and the maturity of technological products, this definition will become increasingly clear.
With the active listing and financing of enterprises in the LED display industry, capital entering the industry brings sufficient cash flow to enterprises, prompting them to expand production capacity and increase investment in research and development technology.
The upgrading of technology and the expansion of scale will intensify competition among the LED display industry, increase the concentration of the LED display industry, and accelerate the integration and reshuffle speed of the LED display industry.
According to analysts from Zhongyan Puhua LED Industry, as the production capacity of the LED display application industry expands, competition in the LED display application market intensifies, further lowering the prices of mainstream LED display products. In the future, the prices of LED display products will continue to decline. The company’s revenue continues to grow, while the gross profit margin continues to decline.
Company advantages
Guangdong Jiuzhou Electric Co., Ltd. is a high-tech enterprise specializing in the research and development of smart grids, including intelligent control of the Internet of Things, energy efficiency management systems, new energy development, intelligent distribution, equipment data acquisition, and automatic control systems. Our main products include computer room distribution, new energy grid connected cabinets, LED display intelligent distribution control cabinets, PLC intelligent distribution control cabinets, aviation distribution boxes, outdoor waterproof distribution cabinets, mobile rental distribution boxes, multifunctional remote control distribution cabinets, and electrical automation control distribution control cabinets. The energy efficiency management system is equipped with multiple patented inventions and software copyrights, as well as CE and certification.
The company's products are widely used in mechanical and electrical engineering, unmanned base stations, new energy grid connection, lighting engineering, urban construction, building intelligence, etc., and are exported to Europe, America and other regions. The product runs safely and reliably, receiving unanimous praise from users. The company is committed to providing high-quality technical services, adhering to the management philosophy of "pragmatism, standardization, innovation, and efficiency", fully understanding customer needs, continuously providing satisfactory services, fully respecting the value of partners, and maximizing win-win situations. Advocate humanized communication, joint participation, empowerment of all staff, and happy work. Facing the future, Kyushu Electric constantly pursues innovation and improvement, aiming to create value for customers and society; And we will strive to become a well-known Chinese enterprise with "business model, scientific management, and international brand". The company has established technical cooperation relationships with several well-known universities in China; And hired several master's students engaged in industrial software control system research and development, as well as engineering personnel who have been engaged in automatic control and electrical research and development for many years. Maintain the international advanced level of Kyushu Electric's product system.
