LED lamp market is booming, how do domestic brands overtake at corners?

China is the world's largest automobile consumer market. According to the Industrial Information Wechat, in 2021, China's auto sales will be 26275000, up 3.8% year on year.

The vigorous development of the automobile market has also driven the development of LED lights. At present, LED lamps have been widely used in the automotive field, and even the headlights representing high-end technology have also been widely used in recent years. LEDinside, the Optoelectronic Research Office of TrendForce Jibang Consulting, pointed out that by 2021, the penetration rate of LED headlights in the world will have exceeded 60%, while the penetration rate in new energy vehicles will be as high as 90%.

At present, international enterprises occupy a large market share of LED lights, while Chinese enterprises are increasing their research and development of LED light technology, and at the same time, they are gradually expanding their share in the LED light market by virtue of cost-effective advantages, thus driving the prosperity of related industrial chains.

Internal and external dual drive, accelerated localization of LED lights

International enterprises set foot in the field of automotive LED earlier. This first mover advantage makes Chinese LED enterprises encounter triple barriers of brand, product and technology when entering the automotive lighting market.

In terms of brand, international enterprises have been widely recognized by automobile enterprises and are the first choice of automobile enterprises.

In terms of products, international enterprises are more familiar with the needs and trends of the automobile industry in the long-term cooperation with automobile enterprises, and the types of products developed are relatively comprehensive and the specifications are also rich.

In terms of technology, the lamps must meet the strict requirements of the vehicle environment, and the development process must have the integrated design capabilities of optics, structure, heat dissipation, electronics, etc. Moreover, the development of each product must pass the strict safety certification of the vehicle manufacturer, which is obviously more familiar to international enterprises.

In order to reduce the cost of coordination, communication and procurement, vehicle manufacturers are more inclined to cooperate with international enterprises. However, the rapid expansion of the new energy vehicle market is expected to break the deadlock.

At present, China is the main production and marketing place of new energy vehicles. According to the Industrial Information Wechat, the sales volume of new energy vehicles in China will be 3.521 million in 2021, with a year-on-year growth of 1.6 times, ranking first in the world for seven consecutive years.

The huge market has become a fertile land for the growth of domestic independent new energy vehicle brands, and also provides a huge stage for Chinese LED lamp enterprises. According to the observation of LEDinside, the Optoelectronic Research Office of TrendForce Jibang Consulting, LED lights for new energy vehicles have become a mainstream development trend. Under the advantage of cost control, local vehicle enterprises are strengthening the supporting cooperation with Chinese LED light enterprises. Therefore, the rapid development of the new energy vehicle industry will become an external factor to accelerate the localization of LED lights.

On the other hand, the development and expansion of China's LED lamp industry chain enterprises have become the internal factors to accelerate the localization of LED lamps.

At present, LED enterprises have paid full attention to the automotive field. Taking Guoxing Optoelectronics as an example, as the leading enterprise in the domestic LED packaging industry, it is bringing more competitive products with high cost performance for local LED lamp enterprises by virtue of better price advantages, more convenient communication and services, and increasingly mature technology, thus becoming a "secret weapon" for Chinese car lamp enterprises to improve brand strength and narrow the gap with international enterprises.

Five dimensions, looking at the lighting layout for Guoxingguang trams

The vehicle LED lighting business of Guoxing Optoelectronics is jointly developed with international and domestic light enterprises. After years of polishing, Guoxing Optoelectronics has formed a large leading edge in the field of lamps.

First, brand advantage. Guoxing Optoelectronics started to set foot in LED packaging in 1976 and is one of the first three LED enterprises in China. At present, Guoxing Optoelectronics is a national high-tech enterprise and a key high-tech enterprise of the National Torch Plan.

It is worth mentioning that on February 18, 2022, FTSE Russell (the world's second largest index compilation company FTSE Russell) released the quarterly review results of the flagship index in February 2022. Among them, only Guoxing Optoelectronics was included in the LED industry, and its enterprise strength cannot be underestimated.

Second, industrial chain advantages. Guoxing Optoelectronics is one of the first enterprises in the LED packaging industry to extend the industrial chain upstream.

It is reported that Guoxing Optoelectronics established Guoxing Semiconductor in 2011; On March 5, 2021, Guoxing Optoelectronics will invest 220 million yuan in Guoxing Semiconductor to further optimize the upstream chip product structure. In terms of vehicle use, Guoxing Semiconductor will complete the development of vehicle LED chip series products in 2020. The products are characterized by low voltage, high reliability and good heat dissipation, which can meet the requirements of chip high current injection applications.

At the same time, Guoxing Optoelectronics has accumulated rich experience in lamp development and optical design capability in the downstream. The vertical integration of the industrial chain enables Guoxing Optoelectronics to quickly respond to customers' needs and achieve large-scale supply on the basis of ensuring product quality and cost-effective advantages.

Third, technological advantages. Guoxing Optoelectronics takes Guoxing Optoelectronics Research Institute as the platform to build the company's core technology research and development base, scientific research project incubation base and technical personnel training base. At present, Guoxing Optoelectronics has more than 10 doctors (postgraduates), more than 150 masters, and more than 700 technicians with bachelor's degree or above, with an annual R&D investment of more than 100 million yuan.

The strong scientific research team has brought the leading edge in technology to Guoxing Optoelectronics. At present, Guoxing Optoelectronics has a patented solder wire design, and the product's cold and thermal shock resistance is in a leading position in the industry; The nano coating packaging technology has greatly improved the S resistance of LED lamp products.

Fourth, product advantages. After years of technical accumulation and market inspection, Guoxing Optoelectronic Lamp LED devices have outstanding advantages and complete series.

In addition, each light LED device product of Guoxing Optoelectronics has been verified according to AEC-Q102 standard. From design and development, production and manufacturing to quality control, they all comply with strict standards. The product parameters are adjustable and the matching efficiency is high when customers develop new schemes.

At present, Guoxing Optoelectronics has launched front mounted low-power TOP series products and rear mounted ceramic high-power devices for automotive lighting.