Affected by the impact of a new round of COVID-19, the recovery of global LED industry demand in 2021 will bring rebound growth. The substitution effect of my country’s LED industry continues, and exports in the first half of the year hit a record high.
Analysis of the status quo and development prospects of the LED industry in 2022
Affected by the impact of a new round of COVID-19, the recovery of global LED industry demand in 2021 will bring rebound growth. The substitution effect of my country’s LED industry continues, and exports in the first half of the year hit a record high. On the one hand, Europe and the United States and other countries have restarted their economies under the monetary easing policy, and the import demand for LED products has rebounded strongly. According to data from the China Lighting Association, in the first half of 2021, the export value of China’s LED lighting products reached 20.988 billion US dollars, a year-on-year increase of 50.83%, setting a new historical export record for the same period. Among them, exports to Europe and the United States accounted for 61.2%, an increase of 11.9% year-on-year. On the other hand, large-scale infections have occurred in many Asian countries except China, and market demand has reversed from strong growth in 2020 to a slight contraction. In terms of global market share, Southeast Asia decreased from 11.7% in the first half of 2020 to 9.7% in the first half of 2021, West Asia decreased from 9.1% to 7.7%, and East Asia decreased from 8.9% to 6.0%. As the epidemic further hit the LED manufacturing industry in Southeast Asia, countries were forced to close multiple industrial parks, which severely hindered the supply chain, and the substitution effect of my country’s LED industry continued. In the first half of 2021, China’s LED industry effectively made up for the supply gap caused by the global epidemic, further highlighting the advantages of manufacturing centers and supply chain hubs.
With the aggravation of the global energy crisis, the enhancement of residents’ awareness of environmental protection, and the continuous improvement of the economic cost-effectiveness of LED lighting products due to technological progress and cost reduction, LED lighting is gradually becoming one of the hot industries in global economic development. Compared with traditional lighting products, LED lighting products have outstanding technical performance advantages in terms of energy consumption, environmental protection, service life, luminous stability and response time.
In recent years, with the improvement of LED luminous efficiency, the gradual reduction of comprehensive costs, and the vigorous promotion of energy-saving policies by the government, LED lighting has ushered in a period of rapid development, and the market demand is particularly strong. With the continuous improvement of LED lighting technology, the comprehensive cost continues to decline. At the same time, the products rely on their environmental protection advantages such as high efficiency, energy saving, easy recycling, non-toxicity and long service life. The penetration rate of China’s LED lighting market continues to rise.
According to the analysis of “2021-2025 China LED Lighting Industry Panoramic Survey and Investment Trend Forecast Research Report”
As the global lighting industry chain shifts to China, and the lighting industry gradually develops in the direction of green lighting, energy saving, and environmental protection, the LED lighting trend has been established, and the Chinese lighting industry has come from behind, and thus has gained good development opportunities and entered a period of rapid development. The upstream of the LED lighting industry chain is the production of substrates and epitaxial wafers, the midstream industry is the production of LED chips, and the downstream is LED packaging and application fields such as display screens, backlight applications, automotive lighting, and general lighting. Among them, the production of upstream epitaxial wafers and midstream chips is the key technology of LED, with high technical content and large capital investment.
In order to improve energy efficiency, protect the environment and cope with global climate change, as the most advantageous new high-efficiency energy-saving lighting products, LED lighting products are the key promotion products of energy-saving lighting in countries around the world. Previously, due to the higher price of LED lighting products compared to traditional lighting products, its market penetration rate has been at a low level. As countries around the world pay more and more attention to energy conservation and emission reduction, the improvement of LED lighting technology and the decline in prices, as well as countries have successively introduced favorable policies to ban the production and sale of incandescent lamps and promote LED lighting products, the penetration rate of LED lighting products continues to increase.
In the future, with the continuous development of lighting energy-saving technology, the protagonist of the traditional lighting market is changing from incandescent lamps to LEDs, and the wide application of new-generation information technologies such as the Internet of Things, next-generation Internet, and cloud computing, smart cities have become an inevitable trend.
Looking forward to 2022, it is expected that the market demand of the global LED industry will further increase under the influence of the “home economy”, and the Chinese LED industry will benefit from the substitution transfer effect. On the one hand, under the influence of the global epidemic, residents went out less, and the market demand for indoor lighting, LED display, etc. continued to increase, injecting new vitality into the LED industry. On the other hand, Asian regions other than China have been forced to abandon virus clearance and adopt a virus coexistence policy due to large-scale infections, which may lead to the recurrence and deterioration of the epidemic situation and increase the uncertainty of resumption of work and production. Relevant persons predict that in 2022, the substitution effect of China’s LED industry will continue, and LED manufacturing and export demand will remain strong.
Post time: Feb-25-2022