The Eighteenth Guangzhou International Lighting Exhibition has just concluded. Reporters learned from the exhibition that the situation of LED lighting industry is better than last year, but the overcapacity still exists. Industry experts predict that the next eight years will be the rapid development period of LED lighting industry, it is expected that have 70% small and medium manufacturing enterprises are facing elimination.

An industry source told reporters that the overcapacity of LED is mainly because there are excessive enterprises. The amount of registered LED companies in China is as many as 7,000, in addition, there are some unregistered small workshops and a number of small working groups of 3-5 people hiding behind registered companies, the enterprises engaging in the LED lighting industry are numerous.

The existence of excessive small and medium enterprises and small workshops causes the serious overcapacity of low-end products, resulting in a vicious price competition. It is understood that the price of LED lighting products has decreased from 180 Yuan to 20-30 Yuan in just two years. Meanwhile, there is a lot cheap low-quality product at 10-15 Yuan on the market price.

Rurong Pan, the vice president of Mason Technologies Co.,Ltd, believes that the price of LED is getting lower and the quality is getting worse, enterprises cannot blindly rely on low prices to win market, as long as the businesses and consumers recognize the value of the LED, the price will be accepted naturally.

"The future market belongs to the enterprises with famous brand, large scale, various channels, product innovation and innovative sales." Wen-Bo Pan said, "LED is a revolution of light source technology, 80 % of China's industrial lighting products will be replaced by LED products in the next 8 years, the replacement period of lighting products has arrived. Meanwhile, 30% -70% of the small and medium enterprises will be eliminated by the LED market."

According to the introduction from Wen-Bo Pan, the Guangzhou International Lighting Exhibition is to guide industry towards healthy and sustainable development. This year's exhibition scale increased by 5% -8% over that of the last year, but the exhibitors declined by 10% -12%. Under the healthy development of market, the manufacturing enterprises will be less, but the scale will be large and profits will be higher in the future.