Analysis of the Prospect and Pattern of China's LED Lighting Heat Sink Components in 2017

As a structural component of electronic products, radiators are widely used in a wide range of applications, including consumer electronics, servers, medical devices, electric power energy , transportation, LED lighting products, etc., all of which may involve the use of radiators. The market potential of radiators for electronic products is huge. 1. Analysis on the market prospect of LED lighting heat dissipation component industry

(1) LED lighting heat dissipation demand promotes the development of LED lighting heat dissipation industry

LED is an optoelectronic device, only 10%-40% of the electric energy is converted into light energy during its operation, and almost all the remaining electric energy is converted into heat energy. For LED lighting fixtures for illumination, the required lumen amount under a specific area may exceed thousands of lumens or even tens of thousands of lumens. The heat generated during the operation of LED is concentrated in the chip with a very small size. The increase of chip temperature causes non-uniform distribution of thermal stress, and decreases the luminous efficiency of the chip and the lasing efficiency of fluorescent powder; when the temperature exceeds a certain value, the failure rate of the device increases exponentially. When multiple LEDs are densely arranged to form a white light lighting system, the problem of heat dissipation becomes more serious. Solving the heat dissipation problem has become a prerequisite for LED lighting applications, especially high-power LED lighting applications.

Optimizing the structural design of lamps and using external cooling systems such as radiators are effective measures to solve the heat dissipation problem of LED lighting products. At present, common LED lighting products in the market are mainly composed of LED light sources, driving power supplies, radiators, other structural components and other parts. Radiators and other structural components together form the heat dissipation components of LED lighting products. The heat dissipation component undertakes the heat dissipation function, and at the same time, as the lamp housing, it also undertakes the protection function of electronic devices, preventing them from being contaminated with dust, liquid or having abnormal contact with other substances, etc. A typical LED lamp structure is shown below:

In recent years, with the increasingly wide application of LED lighting, the LED lighting industry has developed rapidly, and the industrial division of labor has also made considerable progress. LED lamp manufacturers with channel advantages purchase heat dissipation components, LED light sources and driving power supplies from suppliers respectively, then assemble them into finished lamps and sell them to their downstream customers. The growth of demand from customers such as lamp manufacturers has promoted the sustainable development of the LED lighting heat dissipation component industry.

(2) The market growth of LED lighting industry opens up growth space for the heat dissipation component industry

Compared with traditional light sources such as incandescent lamps and fluorescent lamps, LED lighting has advantages in many aspects such as energy saving, environmental protection, service life, color, volume, response time, etc. The replacement of traditional lighting sources by LED lighting is an inevitable trend in the development of the lighting market.

In recent years, on the one hand, the cost of LED devices has dropped significantly. Driven by the cost reduction, the price of LED lighting products has also shown a sharp downward trend in the past two years; on the other hand, governments of various countries have also supported the LED lighting industry through a series of policy measures such as banning incandescent lamps, providing R&D subsidies, equipment subsidies, terminal subsidies, targeted procurement and encouraging the energy management contracting mode. Driven by the combination of these two aspects, the penetration rate of global LED lighting has been greatly improved.

While the penetration rate of global LED lighting has increased significantly, the scale of the global LED lighting market has also shown a high-speed growth trend. According to data from Taiwanese market research institution Digitimes: in 2009, the global LED lighting market size was 1.750 billion US dollars, and in 2010 it was 3.717 billion US dollars, with a growth rate of 112%; in 2012, the market size broke through the 10 billion US dollar mark, reaching 12.148 billion US dollars; in 2015, the global LED lighting market size was 29.908 billion US dollars, and the average annual compound growth rate from 2009 to 2015 was 60.49%.

It is estimated that the global LED lighting market size will reach 34.64 billion US dollars in 2016, an increase of 15.8% compared with 2015, and the global LED lighting market is growing rapidly.

At present, China's LED lighting market has also entered a growth period. With the improvement of the cost performance of LED chips, the development of technologies such as comprehensive light distribution design, drive control and heat dissipation, and the improvement and maturity of various LED lighting solution systems for different light environment application characteristics, LED lighting has increasingly penetrated into the traditional lighting field and gradually been widely used and promoted. In 2014, the output of domestic LED lighting products in China was about 1.67 billion units, the domestic sales volume was about 750 million units, and the domestic market share of LED lighting products (domestic sales volume of LED lighting products / total domestic sales volume of lighting products) reached 16.4%, an increase of about 7 percentage points compared with 8.9% in 2013. Among them, commercial lighting showed a blowout growth, public lighting grew rapidly, and home lighting started to develop.

In 2015, the world accelerated the phase-out of incandescent lamps, and LED has become the mainstream light source for lighting. In 2015, the output of domestic LED lighting products in China was about 6 billion units, the domestic sales volume was about 2.8 billion units, and the domestic market share of LED lighting products reached 32%, an increase of about 15 percentage points compared with 2014. In 2016, the output of domestic LED lighting products in China was about 8 billion units, a year-on-year increase of 33%; the domestic sales volume was about 3.8 billion units, a year-on-year increase of 35%. The domestic market share of LED lighting products reached 42%, an increase of 10 percentage points compared with 2015.

Development of China's indoor LED lighting market

The indoor lighting market includes factory building lighting, shopping mall indoor lighting, hotel indoor lighting, office building indoor lighting, stadium lighting and home lighting, etc. From the perspective of market size, the indoor lighting market will grow into a large-scale market due to its wide application group.

The development of LED indoor lighting market can be roughly divided into three stages. The first stage: incandescent lamps, fluorescent lamps and energy-saving lamps are the main light sources for indoor lighting, while LED lighting products have relatively high prices and are in the demonstration stage; the second stage: with the sequential implementation of global policies banning the production and use of incandescent lamps, incandescent lamps will gradually disappear from the market, energy-saving lamps will account for the main share, and the share of LED lighting products will also increase; the third stage: LED lighting products occupy the main market of indoor lighting, and greatly replace energy-saving lamps.

At present, China's LED indoor lighting products are mainly used in commercial places, such as underground parking lots, supermarkets, hotels, etc., and are in the transition stage from alternative acceptance to large-scale replacement. With the continuous deepening of Chinese consumers' awareness of LED lighting products, LED indoor lighting has begun to enter the home lighting field with huge market space, thereby changing people's traditional daily lighting methods.

The outdoor lighting market mainly includes road lighting, square lighting, sports field lighting, station and wharf lighting, etc.

Due to its particularity, road lighting is the earliest market where LED lighting penetrates into the traditional lighting field. Due to the gradual increase of public transportation energy consumption, LED street lamps with obvious energy-saving benefits have been strongly encouraged and supported by public utility departments. In recent years, the government has vigorously promoted the construction of LED lighting demonstration projects, and promoted the popularization of LED street lamps through preferential policies such as government subsidies. As a market with high penetration in the segmented market of LED general lighting, the application of road lighting in secondary and branch roads is becoming increasingly mature at present, but the application in main roads is still in the exploration period. In the future, with the increase of the penetration rate of LED street lamps in the main road market, the market space of LED street lamps will be further released.

Compared with the road lighting market, outdoor lighting markets such as squares, sports fields, stations and docks have higher requirements on the lighting effect, stability, quality and technology of lighting products. The penetration rate of LED lighting products in these outdoor lighting fields is still relatively low, and replacing traditional lighting requires a process of in-depth market recognition. With the gradual maturity of technologies such as power supply, chip and heat dissipation, the continuous launch of reliable, stable and high-performance high-power LED outdoor lighting products, and the further deepening of market recognition, the application of LED lighting in outdoor fields such as squares, sports fields, stations and docks is expected to achieve explosive growth.