Industry Characteristics and Profit Trends of LED Lighting

In recent years, the production capacity of the smart led bulb manufacturing industry has expanded rapidly, resulting in low industry concentration and fierce market competition. And many small and medium-sized LED lighting manufacturers, due to their product technology, quality, brand, and channel limitations, price competition is mainly conducted in the low-end market.

Ⅰ. Industry characteristics of LED lighting

1. Periodicity

With the gradual maturity of bulk Edison bulbs, and the attention and policy guidance of energy conservation and environmental protection issues by countries all over the world, the LED lighting industry has ushered in huge development opportunities. Therefore, the periodic characteristics are not obvious.

2. Regional

At present, the global LED lighting industry has initially formed an industry distribution and competition pattern centered on the three major regions of Asia, Europe, and North America. China is an important production base and export base for LED lighting products in the world, and Asia, Europe, and North America are the world's most important product consumer markets.

3. Seasonality

There are many types of smart bulbs. LED lighting products have a wide range of applications, and there are long-term and stable application requirements in various fields such as daily life, commerce, production, engineering, and transportation. Therefore, the seasonal characteristics of the overall market are not obvious.

But if we classify the market in detail, LED commercial lighting products are mainly for commercial customers and are affected by traditional consumption habits. Holidays are often the peak season for sales. During International Workers' Day, National Day, Double 11 Shopping Carnival, Lunar New Year, and Christmas in Europe and America, LED lighting manufacturers will increase Promotion and sales to commercial lighting. Therefore, the second half of the year is the peak sales season for the commercial lighting industry. In the first half of the year after the New Year holiday, sales were relatively flat. Therefore, the commercial lighting industry has certain seasonal characteristics.

Ⅱ. Trends and causes of changes in the profit level of the LED lighting industry

The downstream market of the Edison bulbs wholesale industry has a wide range of applications and strong market demand. LED light sources are facing fierce market competition, and the profitability of products is low.

General lighting is the largest application market for LED lighting products, and the development of its segments is quite different. The field of home lighting is gradually entering a mature period, especially the smart home light bulbs, and the market competition pattern has basically formed. At the same time, affected by factors such as rising labor costs and intensified product competition, the profit margin has been reduced to a certain extent.

Market segments such as commercial lighting and industrial lighting are in a stage of rapid development. With the continuous enrichment of commercial LED lighting customers' personalized and customized needs, and the increasing requirements of industrial LED lighting scenes for safety, comfort, and intelligence, market segments such as commercial lighting and industrial lighting will continue to develop rapidly. Moreover, differentiated and personalized products often have higher product added value and greater profit margins.

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