Gradual changes in export market structure, Russia becomes a battleground for LED lighting companies

According to statistics, there were 2,499 lighting companies above designated size nationwide in 2014, with sales of lighting products reaching 520 billion yuan, a year-on-year increase of 10.6%. The export value was US$41.55 billion, a year-on-year increase of 15.4%, of which the export value of LED lighting products was US$9 billion, a year-on-year increase of 50%.

From January to February 2015, China's LED lighting exports reached US$1.59 billion, a year-on-year increase of 42.3%. Although the growth rate has declined compared with 2014, it still shows a high growth trend. With the growth of demand, lighting output value has grown rapidly. LED lighting has gradually moved from the engineering market to the household market, further oppressing the traditional lighting space and further expanding the LED market space.

As far as China's export regions are concerned, the United States still occupies the top spot. It is worth noting that two emerging markets, Russia and Vietnam, have jumped into the top two or three. The other two emerging markets, Malaysia and Singapore, have also shown rapid growth and ranked among the top ten.

From the above data, it can be seen that the export market has turned around compared to the past. The European and American markets no longer occupy the absolute center, emerging markets are rising, and the export pattern of China's LED lighting products has undergone significant changes.

Exports to Europe and the United States: Growth continues to decline, temptations and risks coexist

According to the analysis of export data, Europe and the United States are still the mainstream markets for my country's LED lighting product exports. The North American market ranks first with a global LED market share of 23.1%. It will continue to show rapid growth in the future, with an expected compound annual growth rate of 20%. By 2020, the LED lighting market will reach US$27.3 billion, becoming the world's number one export target for LED lighting and a battleground for LED lighting export companies.

In 2014, the national lighting industry’s cumulative export volume to the German market was US$2.288 billion, a year-on-year increase of 8.08%. This growth rate was 16.31% in 2013 and 19.67% in 2012.

In January 2014, the U.S. government announced that 3.7 billion incandescent lamps will be phased out in the next three years. This freed up market space indeed gives too many temptations to Chinese companies. But at the same time, the United States is dominated by international giants such as GE, Cooper, Philips, Osram, Samsung, LG, and Nichia, and the competition is brutal.

The threshold for entering the European and American markets is relatively high. Taking the U.S. market as an example, products must comply with four major certification requirements: electrical safety cTUVUS, etc., electromagnetic radiation and wireless CC, IC, Bluet00th, etc., energy efficiency testing (Energy Star), and chemical hazardous substances. This has also discouraged many Chinese companies.