GuDong, vice chairman of the Guangdong LED Industry Alliance, recently received an internal report on the LED industry. "The industry has to be reorganized and the shuffling has begun." After reading the documents, he said.
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Can LED companies stick to the mature LED market?
This industry internal data rejected by Goodwin has strengthened his judgment on the situation, and the LED industry is facing a reshuffle. On the one hand, many LED street light companies are facing losses, on the other hand, capacity continues to expand, and LED has reached a crossroads.
"I don't have a specific survey data here, but as far as I know, LED street light companies do have losses." Quan Jian, president of the Guangdong Lighting Association, said.
Goodwin said that according to the information he has, nearly 90% of LED streetlight companies should face difficulties. In addition to the market difficulties that lead to business difficulties, technology is immature is one of the reasons. In addition, the total amount of national streetlight demonstration projects is only about 4 billion yuan, and there are nearly 1,000 enterprises engaged in LED street lamps. In the case that the commercial and civilian markets have not been fully opened, the situation of more and more porridge is becoming more and more serious.
Even if the loss, many companies still choose to support. According to the industry, last year, LED products cost $25 per thousand lumens. When the price per thousand lumens dropped to $2, the market will mature. This time will take about five years. In the past five years, how many companies can persist? Industry experts believe that the industry has been brewing for reshuffle last year. In the reorganization, a large number of weakly competitive enterprises will be eliminated.