Yunlang Cabinets [http://b2b.cbd-china.com/index.php?homepage=yunlang] China's Environmental Resources Committee will gradually determine, in pilot regions of the country, 10 provincial capital cities, 50 prefecture-level cities, and 100 counties (including provincial-level development zones) to implement demonstration projects for green lighting energy-saving renovations. Recently, the China International Lighting Exhibition, known as the weathervane of the domestic lighting industry’s development, opened at the National Exhibition Center. b2b.cbd-china.com
The day before, media reports revealed that He Xuemin, chairman of the China Environmental Resources and Energy Conservation System Innovation Work Committee, disclosed during the release of the "12th Five-Year Plan" Green Lighting Renovation Demonstration Project held in Guangzhou that the China Environmental Resources Committee would arrange 8 billion yuan from central fiscal budget funds outside of the regular budget to purchase 4 million LED high-efficiency road lighting products Huangpai Doors [http://b2b.cbd-china.com/index.php?homepage=81186897], while simultaneously mobilizing no less than 3 billion yuan in local matching funds.
He Xuemin stated that the China Environmental Resources Committee would gradually determine, in pilot regions, 10 provincial capital cities, 50 prefecture-level cities, and 100 counties (including provincial-level development zones) to implement demonstration projects for green lighting energy-saving renovations. Despite the total of 8 billion yuan from the central government and 3 billion yuan from local governments being far from the total scale of China's LED industry, which reached 156 billion yuan in 2011, Xinshanchuan Industry [http://b2b.cbd-china.com/index.php?homepage=23631808] pointed out that this measure is undoubtedly clear in its direction. Analysis agencies indicated that this move would greatly boost industry confidence.
At the same time, world lighting giant Philips Lighting www.huwaizm.com [http://www.huwaizm.com] held its first Chinese media meeting of 2012 in Beijing. Wei Qianzhe, Vice President of Professional Lighting for Philips Lighting Greater China Region, unveiled the marketing theme for Philips Lighting's 2012 Chinese market: [Light, Envisioning the Unseen]. He also revealed that Philips Lighting achieved strong growth in the Chinese market in 2011 and hopes to maintain this growth in 2012.
Wei Qianzhe told our reporter that Philips Lighting realized a 17% growth in the Chinese market in 2011, making China the second-largest market outside of Europe and America. Previously, Philips Lighting announced an investment of 25 million euros to build an LED professional lighting project in Chengdu.
Xu Yongtao, Senior Marketing Director of Philips Lighting China, disclosed that Philips Lighting would continue to deepen its efforts in five细分markets: urban landscape lighting, industrial office lighting, road traffic lighting, commercial lighting, and home lighting, to meet the needs of the Chinese market.
In recent years, China's LED industry has developed rapidly, forming a relatively complete LED industry chain system under the support of national policies and the drive of downstream application demands.
Xu Huai, standing vice president and secretary general of the China Illuminating Engineering Society, said that under the unprecedented emphasis on energy saving, the state has already identified LED lighting as a key development area, which has become one of the most important changes in China's lighting industry. [The rapid development of LED lighting in recent years is due to this technology well meeting the multiple pursuits of today's social development for environmental protection, energy saving, and quality of life. Currently, the lighting industry is welcoming a huge shift from traditional lighting to LED lighting. In this process, how companies change their thinking, seize opportunities, lead this transformation through innovation, and strive to provide integrated lighting solutions rather than just single lighting products.]
During an interview with our reporter, Xu Huai pointed out that although domestic enterprises have developed rapidly in recent years, they still have gaps compared to international giants.
She analyzed that the LED industry chain includes upstream substrates, epitaxial wafers, and chips, midstream packaging, and downstream applications such as lighting, displays, and backlight sources. Currently, China's enterprise industry chain is not complete enough. [China's enterprises can be roughly divided into two types: one transitioning from traditional lighting enterprises, and the other transitioning from semiconductor and light-emitting diode manufacturers. This leads to the former lacking understanding of technology, and the latter lacking understanding of lighting.]
On the contrary, lighting giants like Philips possess substantial capital and technology, enabling them to make layout investments throughout the entire LED industry chain, completing the integration of the industry chain and balancing both technology and lighting. Meanwhile, foreign enterprises are no longer satisfied with providing products; they have turned to providing lighting solutions, becoming service providers. At this level, domestic enterprises still have a considerable gap compared to them.
China Leading Industry Growth: b2b.cbd-china.com
Research results from Strategies Unlimited show that 2010 to 2011 were two years of rapid growth and popularization for LED commercial lighting [http://b2b.cbd-china.com]. In 2011, the global LED lighting market totaled 9 billion US dollars, and the annual output value of the global LED lighting market is expected to exceed 33 billion US dollars in 2013.
Wei Qianzhe did not hesitate to acknowledge China's status in the LED market. [It is precisely the Asia-Pacific market, especially the Chinese market, that is leading the industry's growth.] He frankly admitted that affected by the European debt crisis, many countries in Europe are cutting government expenditures, leading to the lighting equipment market in Europe mostly focusing on replacing existing products. However, in China and other Asia-Pacific region markets, infrastructure construction will drive the development of the lighting industry.
Data from research institutions confirmed Wei Qianzhe's judgment. Data shows that the total scale of China's LED industry reached 156 billion yuan in 2011, growing by 30%. Credit Suisse pointed out that in terms of the market, China is currently the largest global LED outdoor lighting market, setting up a total of 250,000 LED streetlights in 2009, accounting for 42% of the global LED lighting market. The Chinese market has become an important base for the development of the LED industry.
Changjiang Securities' research report pointed out that according to predictions by relevant personnel at the National Development and Reform Commission, during the "12th Five-Year Plan" period, the LED industry aims to achieve a quadrupling goal, with the penetration rate of LED lighting in China reaching 20% by the end of 2015. The industry generally estimates more optimistically, expecting the penetration rate of outdoor LED lighting in China to reach 60%~80%, indoor commercial LED lighting to reach 25%~30%, and indoor residential LED lighting to reach about 5%~10% by 2015. The overall penetration rate of LED lighting in the Chinese market could reach or even exceed 20%. The high-speed growth of the LED lighting market is estimated to continue from 2012 to 2015.
In December last year, Sylvester, the newly appointed Global President of GE Lighting, clearly pointed out in an interview with Chinese media that GE Lighting's strategy towards China was to place greater importance and reliance on China, proposing to shape GE Lighting's vision and strategy in China through three strategies: winning with green solutions, transforming commercial operations, and building a world-class operational platform. While stabilizing the eastern Chinese market, GE Lighting set up its second research center in China in Xi'an, targeting the western market.
Another lighting giant, Osram, already has five production bases and six research centers in China, with nearly 10,000 employees in the country.