LED outdoor functional lighting market bullish

LED outdoor functional lighting is divided into three categories, namely, street lights, tunnel lights and other functional lighting. Other functional lighting products include garden lights, pole lights, and high-power floodlights.

Judging from the current possession of outdoor functional lighting in China, street lights and garden lights have the largest amount of possessions, followed by high pole and high power floodlights, and finally tunnel lights. Since street lights and garden lights are mostly affiliated with the public lighting field, they are developed earlier and faster.

Outdoor lighting market reaches 8.2 billion yuan

According to statistics from a LED industry research institute, the market size of LED outdoor functional lighting in mainland China reached 8.2 billion yuan in 2012, a year-on-year increase of 61%.

LED technology has been further improved, and problems such as heat dissipation, light failure, and power supply that plagued LED outdoor functional lighting have been further solved. At the same time, the rapid decline in the price of upstream chips has improved the cost performance of LED outdoor functional lighting products.

The government promoted the accelerated promotion of LED outdoor functional lighting products. In 2012, the efforts of local governments to promote LED street lights and LED landscape lights were significantly greater than in 2011.

On the one hand, due to the energy saving and emission reduction tasks that all local governments have to complete during the “12th Five-Year Plan” period, and outdoor functional lighting is also a livelihood project, local governments all hope to achieve energy conservation and emission reduction by installing LED street lights and LED garden lights. , while achieving good social benefits.

On the other hand, local governments have introduced favorable conditions for the introduction of LED projects in order to achieve the transformation and upgrading of traditional industries. One of the more important ones is the investment-for-order model of enterprises. After a company invests in a project, local LED street lights and LED garden lights will be installed and replaced by investment companies. After experiencing wave after wave of investment boom, LED street lamps and LED garden lamp orders entered the period of concentrated release in 2012, and the actual installation volume grew rapidly.

Product prices, according to statistical data show that in 2012 LED outdoor functional lighting products prices continue to decline. Among them, the average price of LED street lamps decreased by about 27% year-on-year, the average price of LED tunnel lamps decreased by 16% year-on-year, and the price of LED garden lamps decreased by 18% year-on-year.

In terms of profit margins, although prices have dropped significantly, the gross profit margin of LED outdoor functional lighting has not been significantly reduced because the prices of raw materials have also dropped. A survey data shows that in 2012, the gross profit rate of LED outdoor functional lighting products in mainland China still exceeded 25%.

It is estimated that in 2013 LED outdoor functional lighting market will reach 11.6 billion yuan, an increase of 41%. The main driving factors include:

In 2012, Guangdong launched LED lighting product promotion program. Street lights, garden lights and landscape lights in public lighting are also the focus of transformation. In 2013, the installed capacity of LED street lamps in Guangdong Province will exceed 1.1 million baht.

The financial subsidy promotion orders for semiconductor lighting products led by the six central ministries and commissions will also be released in 2013. The number of LED street lights and LED tunnel lights planned to install was 880,000.

The Ten City Wanhao project was released. Although the implementation results of the first phase of Ten Cities and Ten Thousand Fighters were not satisfactory, in the second phase, several cities still issued promotion plans to give strong support. For example, in the promotion program of Linfen, Shanxi Province, it is proposed that the number of LED street lamps to be installed before 2013 exceeds 26,000 tons; the promotion plan in Chenzhou, Hunan Province mentioned that since 2012, new and reconstructed traffic masters have been built in the city (county, city) urban areas. The use of semi-conductor lighting street lamps was widely promoted in the secondary roads, and in Huzhou, Zhejiang, by the end of 2013, the city’s demonstration and application of LED lighting products was more than 40,000.

At present, new rural and rural green lighting projects will give priority to LED lighting products, especially outdoor lighting. During the "12th Five-Year Plan" period, the central government continued to increase the development of new rural construction and green lighting in rural areas, and the demand for LED lighting products also showed a steady increase.

Installation of LED street lamps reaches 1 million. Since 2008, the number of urban street lighting fixtures in China has experienced rapid development. According to data released by the National Bureau of Statistics, the average annual increase in 2008-2011 was 1.39 million baht. As of the end of 2011, the number of urban street lighting fixtures in mainland China reached 19.9 million baht, with a compound annual growth. The number of urban street lighting fixtures in Jiangsu and Guangdong alone exceeded 2 million baht, which was 2.33 million baht and 2.23 million baht respectively.

The application of LED street lamps began to mature in 2012, and the demand for urban and rural areas grew rapidly. At the same time, the Guangdong government took the lead in the introduction of LED lighting promotion policies, clearly pointed out that the new street lamps will use LED lighting products, and all street lights in the province will be replaced with LED street lights within three years.

Affected by this favorable policy, China's LED street lamp shipments and actual installations increased significantly in 2012. In 2012, China's LED street lamp shipments were 1.35 million baht, a year-on-year increase of 98%; of which exports were 350,000 baht, accounting for 26%, an increase of 132% year-on-year.

In terms of actual installed capacity, the installed capacity of LED street lamps in mainland China reached 1 million in 2012, an increase of 89% year-on-year. As of the end of 2012, the number of LED street lamps already installed in mainland China reached 1.95 million.

In 2013, Guangdong province will replace street lamp replacement orders, semiconductor lighting product financial subsidy promotion project orders, and ten city million-dollar orders, which will boost LED street lamp shipments. In 2013, LED street lamp shipments in Mainland China will reach 2.31 million, an increase of 72% year-on-year.