After over 40 years of development, China’s LED lighting industry has formed a complete industry chain. The growth rate of LED lighting exports is higher than the average growth rate of China’s other exports even it is slowing down after exceeding 30% for many years in a row.

As international giants withdraw from the general lighting sector, the output value of China’s LED lighting industry will continue to increase. It is expected that in 2020, the output value of China’s LED lighting industry will reach CNY 445 billion, increasing by 14.10% YOY and accounting for 61% of the global total.

As the concepts of environmental protection, energy conservation and green lighting gain growing popularity, LED lighting featured with high efficiency, low energy consumption, high safety and reliability, convenient management and long service life has been widely used in the lighting industry in recent years. Meanwhile, the LED lighting market is also driven by the national green lighting campaign and supporting policies.

China’s LED lighting industry is growing rapidly with expanding scale and an increasing number of participants. However, most LED enterprises in China are small or medium-sized enterprises that lack technologies and funds for research and development, which leads to homogeneous products. Enterprises scramble for market share mainly through price competition, which disrupts the market order.

 “Lighting” is the core function of lighting products. However, lighting products on the market are almost identical. In this context, enterprises are prone to fight recklessly. Such vicious competition is unfavorable to the long-term healthy development of the LED lighting industry.

In addition, the LED lighting industry has shown signs of market saturation, demand reduction and overcapacity. In rapid expansion, a large number of enterprises will be driven out of the market because of homogenous products, which presents both challenges and opportunities.

Related reports:

The post Analysis on China’s LED Lighting Industry in 2019 first appeared on CRI Report.