After a round of brutal market baptism, the global LED industry’s prosperity in 2014 has been comprehensively improved, showing vitality. Benefiting from the support of the United States, Canada, China, the European Union and other major countries in the global “ban white” policy and the reduction of LED costs, the next 3-5 years will be a “golden period” for the rapid growth of the LED lighting industry.
As one of the largest overseas markets for China’s LED industry, the European and American markets have shown a rapid recovery after the shock of the financial crisis. In recent years, the rapidly rising export data clearly shows that the European and American markets have become the main battlefield for Chinese LED companies’ exports. However, for Chinese manufacturers, the European and American markets have always been a “difficult bone”. Tight patent networks, standardized standards systems, and ever-increasing barriers to entry are all touching the fragile nerves of Chinese export companies. Under the new international market structure, in order to charge Europe and the United States, domestic LED companies need to practice their “internal skills.”
Improved penetration, Europe and the United States become the global LED main battlefield
In 2014, under the background of the rapid growth of the global LED lighting market, international lighting giants including Cree, Philips, etc. have vigorously promoted the LED lighting industry to promote the growth of LED lighting business. The industry pointed out that the United States and Europe will be the most anticipated markets. In the next two years, the penetration of the US market will usher in an explosion from 10% to 50%, and the European market will usher in an explosion of 20% to 60%.
China, as the world’s largest exporter of LED products, the changes in export data actually reflect the global demand for LED products. According to GSC data statistics, among the five major export areas of China’s LED industry in the first half of 2014, the largest export volume of lighting fixtures reached 69.301 billion yuan, accounting for 63.64% of the total, an increase of 93.26% year-on-year. The explosive growth of lighting exports also shows that overseas markets have good confidence in LEDs replacing traditional lighting. With the implementation of the ban on incandescent lamp sales in various countries, the penetration rate of the LED market will inevitably increase in the next few years. Shows a rapid growth trend.
From the perspective of exporting intercontinental regions, the EU is one of the largest overseas markets after Asia. In the first half of 2014, China’s total export of LED lighting products to the EU27 countries exceeded US $ 1 billion, an increase of 84.23% year-on-year, accounting for more than 1/4 of China’s overall export. Among them, the export value in the second quarter of 2014 was nearly 600 million US dollars, a growth rate of 71%. Affected by the European financial crisis, from 2011 to early 2012, China ’s overall export growth rate of LED lighting products to the European Union was relatively slow. In 2012, the growth rate began to accelerate significantly, and the growth rate increased to about 50% in the second half of the year. In 2013, as the EU economy gradually came out of the trough, the export of LED lighting products showed explosive growth, the growth rate soared to 100%, the export value climbed quarter by quarter, and the annual export value reached nearly 1.5 billion US dollars, and this trend continued until 2014 year.
From the perspective of export destination countries, the top ten exporting EU countries and the United States occupy the vast majority of the market share. Among them, the United States has always firmly ranked first in the export volume, accounting for 19.12% of the total. Hong Kong ranks the top In the second place, it accounted for 8.43% of the total, the Netherlands ranked third, accounting for 5.86% of the total, and Germany ranked fourth, accounting for 5.49% of the total. Various data show that the European and American markets have become one of the most important overseas main battlefields for China’s LED export companies.
Policy favors leveraging LED emerging markets in Europe and America
Behind the huge export data, it is the strong promotion of the LED lighting industry by relevant countries in Europe and the United States. Since 2014, European and American countries have successively eliminated the 40-60W incandescent bulbs with the largest consumption in the civilian market, providing a favorable opportunity for the popularization of LED lighting products. As one of the world’s largest lighting markets, the complete ban on the sale of incandescent lamps in the United States will stimulate the huge potential of the LED market size, meanwhile, it means that the entire overseas LED market is ushering in a rapid expansion period.
According to a report released by the US Department of Energy at the beginning of this year, demand for light-emitting diode (LED) lighting fixtures will increase at a rate of 7.4% per year, and the global explosion of LED lighting will accelerate. According to the United States Department of Energy, the overall size of the US lighting market in 2016 will reach $ 25.1 billion. By 2030, the demand for LED lighting in the United States will surge by 50%. The areas with the greatest potential for energy saving are commercial areas, followed by residential areas. The two areas are expected to save 37% and 34% of power consumption, respectively.
In North America, the growth momentum of the LED lighting industry cannot be underestimated. According to the GSC report, in 2014, the penetration rate of LED lighting products in North America will jump from 19% last year to 33%, and will reach 45% in 2015, and the potential market demand has increased significantly. From this, it is clear from the optimistic economic environment, favorable “banning” policy, relatively complete supporting technical support, and huge potential demand that North America has become a new competition field for global LED lighting companies.
In addition, the EU also launched the “SSL-erate” project plan at the end of 2013, and during the lighting fair in Frankfurt this year, launched the “Lighting for People” project plan. According to EU statistics, about 8 billion bulbs in Europe need to be gradually replaced, and about 90 million traditional street lamps need to be replaced.
The delisting of incandescent lamps will gradually promote the development of the European LED light bulb market. As the European debt crisis eases, consumer acceptance and purchasing power of LED light bulbs are gradually picking up. It is expected that under the dual impetus of the project plan The market in the region will accelerate the healthy development and mature, and the EU lighting market will continue to maintain the largest market share in the Chinese export market camp.
High threshold has become a “stopper” for entering the European and American markets
For a long time, the European and American markets have been strategic points that domestic manufacturers must overcome when they enter the world stage and demonstrate their international status. However, any LED products entering the European and American markets must meet the access requirements of the local market. For LED products, any standard has strict requirements on its reliability and safety, and some are even almost harsh.
It is understood that for the LED market access requirements, the United States market has a system of inspection and execution requirements that are more stringent than those in Europe. The specifications and structural requirements are very different from those in the Chinese market. Product customization. In addition, various certifications include UL, DLC, ENERGYSTAR, etc. to clarify product specifications and safety requirements, including light distribution, electrical parameters, glare, visual comfort, etc., requiring higher energy-saving ratios.
It is reported that LED products sold in the US market must meet the US Environmental Protection Agency certification requirements. In addition, the certification requirements are currently being updated. For example, the certification requirements for LED bulbs were introduced at the end of 2012 and became effective in 2013. The product lumen maintenance must pass a 6000-hour maintenance time; the requirements for light efficiency and light output will also be more stringent, etc. Wait.
In the EU market, in addition to the two basic certifications of CE and RoHS for LED exporters, starting from September 2013, the EU has put forward high energy efficiency requirements for directional lights and LED lights. The notification regulations require that only directional LED lamps and directional fluorescent lamps with an energy efficiency index of 0.2 or more can enter the EU market, which is 2.5 times higher than the previous energy efficiency requirements and 2.2 times the current national standard requirements.
“From the perspective of the formulation of LED product standards in various countries around the world, the developed countries and regions in Europe and the United States have been at the forefront of the world, the product standards are relatively complete, and the implementation system is relatively clear.” TUV Rheinland Greater China market standards Wang Congrong, senior manager of service entry, said that because the European and American markets are relatively mature, the export threshold is also constantly increasing. In order for Chinese LED export companies to enter these two markets, they must pay enough attention to product quality and related certifications.
Practicing good internal skills is the key
With the accelerated popularization of LED lighting around the world, countries have increased their requirements for product safety, quality, and performance at the same time as they have strengthened the introduction of relevant certification regulations. Taking the European and American markets as an example, 2014 or will continue the situation in 2013, and put forward stricter and more stringent standards in terms of product quality and energy efficiency certifications such as UL, ERP directives, Energy Star.
At present, it is not uncommon for Chinese LED companies to seize the market by sacrificing product quality, resulting in frequent blacklists due to product quality issues. According to incomplete statistics, since 2012, the European Union ’s Rapid Food Warning System (RAPEX) notified China’s export of LED lighting products hundreds of times, most of which were due to insufficient creepage distances or insufficient electrical gaps, which caused poor insulation performance. Caused by quality issues. It can be seen that the problem of product quality has become an obstacle to the development of foreign markets in the LED industry.
Zhou Xuejun, marketing director of Philips Lumileds Asia, once pointed out that the first product a company can get on the table is the product, which is the foundation. To export, we must first make our products meet the requirements of the other market. Only products that meet the requirements can talk about other things, such as brands.
In the context of the international energy-saving society, the demand for LED products in the global market will continue to increase. However, increasingly severe trade barriers and increasingly fierce market competition have become the true portrayal of the current international market. To successfully occupy the mature markets in Europe and the United States, Chinese LED companies must practice “internal skills”, and focus on product quality through innovative products, Technology, with the main line of strengthening product independent innovation, strive to break through the key manufacturing technologies that restrict the development of lamps and lanterns, and improve the level of production equipment, optimize product structure, increase product added value, increase brand recognition, and strengthen the soft power of brand building.
