Technology progress, product application range will continue to expand

LED is a new type of semiconductor solid light emitting device. When a forward voltage is applied to both ends, the carrier in the semiconductor recombines and causes photon emission to produce light. Leds made of different materials emit different wavelengths of light, resulting in different colors. LED has the characteristics of low energy consumption, small size, long life, no pollution, fast response, low driving power, strong shock resistance, high color purity, known as a new generation of lighting source and green light source. Under the implementation of the global concept of energy conservation and environmental protection and the support of the industry policies of various countries, the overall LED lighting market has maintained a rapid growth. In 2017, the global LED lighting industry scale reached $385.91 billion, with a year-on-year growth of 13.3%.

At the same time, with the continuous progress of LED technology, LED shape size thin, light efficiency, color rendering, brightness retention rate, color stability and other aspects of the performance of the continuous improvement, the application field is expanding. LED products from the earliest monochrome signal indication, digital display, dot matrix display, landscape decoration, gradually developed to traffic indication, full color display, full color backlight lighting, decorative lighting, interior lighting, automotive lighting and other functional components. Widely used in mobile phones, digital products, LED LCD TV, desktop LCD, laptop, netbooks, full color display, indoor and outdoor lighting, automotive and other fields.

As the cost of LED continues to fall, in the field of general lighting is becoming the most potential green lighting source. In the future, applications of intelligent lighting, optical communication and wearable electronics will become new highlights of LED applications.

Industrial integration, mergers and acquisitions integration will be more frequent

As the semiconductor lighting industry enters a new period of rapid growth, LED lighting products are developing towards higher luminous efficiency, lower cost, higher reliability and wider application direction, and gradually opening cross-field integration, forming products with higher technical content and added value. In general, there are three development trends of LED lighting, which are integration, standardization and intelligence.

In terms of production technology, with the further development of LED technology, chip-level light source technology combined with integrated circuit technology, multifunctional system integrated packaging technology, LED module technology beyond packaging will receive continuous attention and follow-up. In the application field, standardization, modularization, low cost, high reliability, high efficiency will be the main development direction of LED application products and systems. In terms of industrial collaboration, LED technology will be deeply integrated with the new generation of information technology, showing the development trend of intelligence, remote, digital and networking.

At the same time, as the product application is changing from technology innovation to the business model of application scheme and integrated service innovation, the "online and offline" channels are further integrated. The industry reshuffle is accelerating, and the passive or active merger and integration between enterprises has been the trend. In 2017, the merger and acquisition amount of LED lighting industry was nearly 20 billion yuan. Among them, the disclosed transaction volume of vertical and vertical integration exceeded 11.5 billion yuan, accounting for 60%. The main direction is that other link enterprises focus on the chip link with higher profits. LED industry mergers and acquisitions will be more frequent in the future.

The Belt and Road Initiative may become a new opportunity as exports increase

The Belt and Road covers 64 countries including Southeast Asia, Central Asia, South Asia, West Asia, North Africa, Central and Eastern Europe, the Commonwealth of Independent States (only refers to the seven countries within Europe). According to the statistics of the National Bureau of Statistics in 2013, the "Belt and Road" covers 4.402 billion people, accounting for 63% of the world's total population. Total GDP of 20.83 trillion US dollars, accounting for 29% of the world. Per capital GDP was $10,871.67; 23.9 per cent of world exports of goods and services. Eurasia railway network total 81,000 kilometers. More than 35 countries, accounting for more than half, depend on imports for energy.

In 2013, China exported LED lighting products to 64 countries along the Belt and Road with a total scale of 2.163 billion US dollars, accounting for 19.93% of the country's total LED lighting exports. In 2015, the "Belt and Road" market of China's LED lighting export was about $10 billion, with a year-on-year growth of 43%, accounting for about 38% of the country's LED lighting exports. With the implementation of the national "One Belt, One Road" strategy, the export of the "One Belt, One Road" market growth rate will be higher than the overall level of the export of LED lighting products in the country, the annual growth rate from 2013 to 2020 is about 58%. By 2020, the export of China's LED lighting products to the "One Belt, One Road" will be about 53 billion dollars, accounting for more than 50% of the national share.

Under the continuous ferment of the global LED lighting market, "One Belt and One Road" has become a major strategic opportunity for transformation and upgrading of Chinese LED industry.