Analysis of the development of LED street lamp enterprises in the fierce competition


Although the development speed of LED street lights in 2009 is not as fast as expected, the prospects are bright. Optimistic LED street lights will replace the beautiful prospects of traditional street lamps, LED companies compete to invest in the development of LED street lights. Hundreds of companies have launched LED street lighting products, but most of them have not been mass-produced. Compared with the enthusiasm of LED street lamps, the LED street lamp market in China has not yet been launched in 2009. According to LEDinside, an industry research institute, the market size of LED street lamps in China in 2009 was only 200,000-300,000 baht, and the large-scale promotion of LED street lamps is estimated to be after 2012. The future prospects are fascinating. The current market demand is not enough. How to make wise choices for each company to face the market has become a headache for all LED companies.

Intense competition in the Chinese market

In fact, the investment situation of LED street lamps is ahead of market demand. According to the current investment situation, the overall production capacity of enterprises should be surplus in the next one or two years. According to LEDinside, China's LED street lamp market will grow by 100% in 2010 to a scale of more than 400,000 baht. The production capacity of LED street lamps by various enterprises has far exceeded the market demand. At present, the relatively mature LED street light enterprises have Dongguan Qinshang, Weifang Zhonghui, Zhejiang Qiushi, Shenzhen Bangbei, Shanxi Guangyu, Zhejiang Jingri, Zhejiang Mingxin, Shenzhen Sunda, Shenzhen Huasheng and so on. The sales of LED street lamps of these enterprises have reached a certain scale, and more enterprise LED street lamps have not been sold. Now it is relying on other products to support the development of enterprises. In addition to these already existing companies, there are also many large projects under construction or under construction. In 2009, Zhengzhou Shengmao opened an annual output of 800,000 sets of LED streetlight projects, Jiangxi Jinghe Lighting started 200,000 LED streetlight projects, Jiangxi Jingneng plans LED streetlights 50,000 projects, and Guangzhou Lianglili plans to invest 50,000 yuan per year. LED street light projects, etc. There are still many large projects for LED street lights in the planning, and the market competition for LED street lamps will be very fierce in the future.

Enterprises should increase the proportion of R&D investment

Enterprises should invest more money in the development of LED street lamps instead of rushing to build LED street lamp production bases. Even if a large LED street lamp factory is established now, the sales of limited LED street lamp products in the market are far from good. After waiting for a few years of LED streetlight technology and the market are mature, the factories and equipment that are now built may be relatively backward, and they have to re-add and replace equipment, wasting a lot of manpower, material resources and financial resources.

Judging from the current market situation, it is better to set up a large scale to wait for the big orders coming in the future. It is better to set up an appropriate scale to invest more money in the research and development of LED street lamps. In the future, with the standard of China's LED street lamps, the quality inspection of LED street lamps will continue to improve. Only companies with strong street lamp technology can obtain real street lamps. Therefore, it is recommended that companies invest more energy in the development of LED street lamps.

Overseas LED street light market has broad prospects and more lucrative profits

The UN Climate Conference in Copenhagen has effectively raised the importance of energy conservation and emission reduction in various countries. In the future, overseas LED market street lamps will provide a broad space. In fact, many companies in China have achieved very good results in overseas markets. For example, Shenzhen Bang Bo has 70% of LED street lamps sold overseas. Zhejiang Qiushi also has many street lamps that have been sold overseas. The price of overseas markets is higher and the profits are more abundant, and the collection period of funds is also shorter. Of course, enterprises must sell street lamps overseas, especially in developed countries in Europe and America. It is necessary to strengthen R&D investment to ensure the stable quality of LED street lamps under different climatic conditions.

to sum up

It is inevitable that LED street lamp production capacity will be surplus in the next two years, and market competition will be particularly fierce;
More than 100 companies have sold LED street lights on the market, but most of them have not achieved mass production;
It is necessary to increase the proportion of R&D investment in LED street lamps instead of building large-scale factories;
Exports will be one of the important sales channels for Chinese LED street lighting companies, and exports will receive better profit guarantees.

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