The first half of 2017 has now become history. Against the backdrop of a recovering global economy, the LED lighting market continued to expand throughout the first six months of the year. Looking at the "mid-term exam results" of publicly traded lighting companies on the A-share market, we can see that revenue for lighting manufacturers has steadily risen. Among these, Feile Audio emerged victorious with earnings reaching 3.372 billion. This not only highlights the thriving nature of the LED lighting market but also indicates that, due to the economies of scale achieved by large enterprises, the competitive environment for smaller and medium-sized businesses is becoming increasingly challenging.
In the first half of the year, thanks to government policies and restrictions, the LED lighting market began to warm up. The position of international lighting giants has further diminished, while Chinese LED companies have strengthened their global standing. This shift has been a significant contributor to the revenue growth of these companies. In the first half of the year, Mulinsen completed the acquisition of Land Vans, GE announced plans to sell part of its lighting division, and Samsung even mentioned the possible sale of its LED business in China... These events suggest that the once international-dominated lighting market is undergoing change, with Chinese companies playing a more prominent role.
With the advent of the LED era, the pace of technological and product iteration has quickened. The convergence of light sources, lamp forms, and diverse demands has heightened the technological, manufacturing, and competitive barriers within the lighting industry. Consequently, this has prompted a reshuffling of the industry landscape. The rate of consolidation is accelerating, and the concentration of the market is gradually increasing. According to the "2016 China LED Lighting Industry Top 100" report, the total sales performance of the top 100 companies in the LED lighting sector surpassed 118 billion yuan, representing over 20% of the entire industry.
Market sentiment has strengthened, leading to overall robust growth in the second half. Given the heightened industry concentration and the successive withdrawals of international giants, the oligopolistic effect in China's lighting industry has become more pronounced. In the first half of the year, most LED lighting application companies saw their revenues double. What factors drove the lighting market to grow so strongly?
Regarding this, the relevant person in charge of NVC Group told Gaogong LED: Firstly, the current development of LED lighting technology is highly mature, ensuring stable quality. LED products can replace most traditional lighting products; secondly, LED prices have dropped significantly, making the price difference with traditional lighting products negligible, which directly influences consumers to prefer LED lighting products; thirdly, the production of traditional lighting has undergone significant transformation and upgrading, promoting the production of LED lighting products; additionally, the global economic climate and policy promotion have also been driving forces behind the rapid growth of the LED lighting market in the first half of the year.
The head of Sanxiong Aurora added: "This year's policies have had a profound impact on the LED industry. Firstly, under the influence of the 'One Belt, One Road' strategy and international cooperation, the export growth of LED products; secondly, the China Manufacturing 2025 policy has opened up vast opportunities for the semiconductor lighting industry. Additionally, the construction of smart cities has accelerated the formation of new kinetic energy, which in turn has led to new supply chains; finally, the continuous improvement of LED product features and the gradual decline in costs." All of these factors have stimulated the strong growth of the LED lighting market in the first half of the year. Sanxiong Aurora emphasized that the increase in LED penetration and market concentration will be more beneficial for the growth of first-line brands.
As the leaders of NVC and Sanxiong Aurora mentioned, in the first half of the year, under the promotion of the "13th Five-Year Plan" and related policies of the semiconductor lighting industry, as well as the growing awareness of energy conservation and environmental protection, the first-line brands have thrived in the LED lighting market. This is clearly reflected in the interim results of listed companies.
In the second half of the year, the LED lighting market will further improve due to inertia, although certain markets, like real estate construction, may be affected by policy adjustments. For the market trends in the second half of the year, Sanxiong Aurora believes that the industry will face greater cost pressures in the second half, but the overall market will maintain rapid growth.
"On the technical front, LED chip technology continues to advance, improving the energy efficiency of the entire lamp, and product prices will continue to fall. There are also promising developments in the intelligent application level and non-visual application fields (such as agricultural plant lighting and medical lighting)," the person in charge told Gaogong LED.
Home lighting and outdoor lighting are poised for significant growth. LED lighting applications are becoming increasingly diverse, from indoor to outdoor spaces. With the potential for "rapid expansion," LED products are infiltrating every corner of our living spaces. From decorative lighting to practical scene lighting, LED lighting is creating more intersections with human life.
Intelligent lighting has become increasingly popular among consumers due to its operational convenience; plant lighting is combining with new agricultural production models to present a fresh perspective in the industry; with the evolution of technology and intelligence, LED headlights have evolved into the mainstay of automotive lighting...
In various applications, which areas will LED lighting products see significant growth in the second half of the year?
"The first is the field of decorative lighting. With the improvement of consumer taste in home decoration, the channel has flattened, and the price of lighting products has fallen, providing room for decorative lighting to enter the township market. With the continuous growth of the middle class and wealthy groups, the post-80s and post-90s generations have become the main consumers. Lighting has shifted from basic needs to more artistic and styled decorative lighting needs. Decorative lighting combines practicality and artistry, and more personalized displays of lifestyle tastes are increasingly favored by consumers; secondly, it is the outdoor lighting field of Shangzhao. With the development of urban construction in China, urbanization construction is paying more attention to the image of the city. The country is actively transforming the urban development model, focusing on urban infrastructure construction, building a harmonious and livable, dynamic and unique modern city, such as smart cities, sponge cities, green cities, etc., and outdoor lighting is inseparable from urban planning."
Sanxiong Aurora agreed. "The home and commercial lighting sectors will maintain rapid growth; at the same time, they will continue to be stimulated by the Hangzhou G20 Summit and the Xiamen BRICS Conference. The landscape lighting market may enter a stage of rapid growth." The Sanxiong Aurora responsible person added, "The LED lighting driver power supply market is expected to grow rapidly, especially the emergency power supply. Under the construction of smart cities, intelligent management of power supplies has become the direction, and it is expected to modernize the urban emergency system and emergency response capabilities. The intelligentization of power supplies provides great convenience for the later assembly and maintenance of lamps. At the same time, the functions realized by the luminaires are more diversified."
The "price surge" in the mid-to-lower reaches of the industry is inevitable. Last year, the wave of price hikes initiated by upstream chip companies such as Sanan Optoelectronics affected the industry. At the beginning of this year, this price increase gradually spread to the mid-to-lower reaches. Coupled with the country's efforts to improve environmental protection, companies such as metal factories and carton factories, suffering from high energy consumption and emissions, experienced a continuous shortage of copper, aluminum, and paper boxes, driving up raw material prices.
For the price increase issue, both the NVC Group and Sanxiong Aurora responsible persons expressed their views. The NVC Group stated that the price hike has been ongoing since the end of last year, starting with chip packaging and spreading to downstream applications. Many lighting companies have already announced price increases at the beginning of the year. Recently, price hikes have occurred again, mainly starting from supporting materials such as copper, aluminum, and paper, which will impact downstream applications. Many small companies will undergo reshuffling, but large enterprises in downstream applications are temporarily unaffected. On the other hand, dealers are not necessarily exclusive to price increases, and some say that proper price increases are healthier.
Sanxiong Aurora believes that the upstream price increase will inevitably affect the downstream industry, particularly for small and medium-sized brands; the impact on first-line brands, chips, lamps, and other electronic components may not be significant. On one hand, the upstream has a strong cost-digesting ability, and on the other hand, both parties will consider the price strategy from the perspective of long-term cooperation.
"On the one hand, the reduction of the supply end of the LED industry is an important driving factor for price increases; on the other hand, many of the materials required for LEDs belong to industrial metals. As the price of industrial metals rises from the previous month, it can be inferred that prices will continue to rise," Sanxiong Aurora pointed out to Gaogong LED.
A Power Distribution Unit (PDU) is an essential piece of equipment in data centers, designed with multiple outlets to efficiently distribute electrical power to racks of servers and network devices. Given the substantial challenges that data centers encounter in terms of power protection and management, PDU monitoring has become a critical strategy to enhance operational efficiency, reliability, and scalability.[1][2][3] Unlike conventional power strips found in homes or offices, data centers typically require PDUs with significantly higher power inputs, sometimes reaching up to 22 kilovolt-amperes (kVA) or more. The majority of large-scale data centers employ PDUs that feature a three-phase power input and a single-phase power output configuration.
The PDUs can be broadly classified into two types: Basic PDUs and Intelligent PDUs, also known as iPDUs. Basic PDUs serve the primary function of channeling power from the source to multiple outlets. On the other hand, Intelligent PDUs are equipped with advanced modules that facilitate remote management capabilities, including power metering, outlet control, and the ability to set up alerts. Some sophisticated PDUs even offer the functionality to integrate and manage external sensors for monitoring environmental factors such as temperature, humidity, and airflow, thereby providing a more comprehensive approach to data center monitoring and management.
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