The penetration of LED lighting is enhanced in 2013

Experienced the "cold" in 2012, the overall market trend of LED light is clearly warmer in the first half of 2013, with accelerated phase-out of the incandescent lamps, LED lighting penetration is significantly faster, market incipient outbreaks.

1, the lighting market: LED lighting penetration may speed

Under the impact of the economic environment at home and abroad, the overall external demand of the electrical and lighting industry is weak, domestic demand is not busy, the growth rate decline over the previous years in 2012. the lighting industry picked up in the first half of 2013, the revenue growth of the main business returned 16.78%, the above-scale enterprises realized main business income that is 74.618 billion in the first three months, the total profit is 3.902 billion, the overall profit margin is 5.23%.

On the other hand, in 2013, the penetration pace of the LED lighting market may speed. As the technology development led to improvement of the light efficiency, as well as the upstream LED chip overcapacity caused that the prices were dropped significantly, LED lighting product prices have started to reach the critical point mass the market can accept. Expected in 2013,as the alternative routes of the incandescent into the real implementation phase, various manufacturers have increased marketing and distribution channels, LED lighting will be a major breakthrough in commercial lighting and outdoor lighting such as the LED flood light and LED tube light. Previously, according to CSA production research estimates, in 2012, LED lighting market penetration is about 3.5%, which is expected rise to about 10%in 2013.

From historical data, we can see that since 2009, the average profit margin of the overall industry began to rise significantly, climbing from 3.49% in 2009 to 6.87% in late 2011; fell slightly in early 2013. In fact, LED lighting began to penetrate market in 2009, with the penetration gradual increase, the high-margin of the LED lighting lead that the entire industry profit margins improved. In early 2013,  as the price of the LED light decreased, the industry profit margins began to fall.

2, incandescent phase out effects appear negative growth in production

From the completion of the production situation, the overall yield of the overall lighting market continues to maintain the 20% growth rate, but the main category began to differentiate, incandescent substitution effect is starting to show. Over the past year, the growth rate of the incandescent showed a decreasing trend quarter by quarter， which began to be negative growth on March 2013. In contrast, other NES is complementary with incandescent showed significant，since the beginning of 2012，the growth rate -5.97% continued to increase, and since 2013 began to clear high growth , the growth rate were maintained above 30% on February-May .

Indeed, with the national phase-out incandescent roadmap released，ban sale of 100 watts and above ordinary incandescent lighting on the import began to be formally implemented on October 2012, in 2013 the production side has been significant capacity contraction. Therefore, I believe that along with the road map continues to advance, the market penetration of the alternative lighting products will be significantly improved, LED lighting market will into the outbreak recent years.

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