January 09, 2025

High-power LED power supply factory has a low market share and a serious decline in profits

[Wen/Wang Cairong] Since the second half of 2013, benefiting from the local government's accelerated popularization of LED lighting renovation in the public sector and the booming business market, the demand for high-power LED driver power supply has also prospered.

For LED driver manufacturers, this is naturally good news, but it also indicates that new high-power LED driver manufacturers will once again usher in a new contest.

In general, high-power LED driver power supply coverage is 60W-300W, mainly used in LED street lights, LED tunnel lights, landscape lighting and some high-power commercial lighting. At present, the domestic large-scale high-power LED outdoor power supply enterprises mainly include Moso Power (002660.SZ), Shilong Fuhua (UE), Infineon, Zhongheng Paiwei, Kelik, Mingwei Electronics and so on.

Despite the wide range of applications and large manufacturers, so far, no one has seen any power supply manufacturers in the market share of high-power LED driver power supply, especially in the market, with absolute say in the market.

Take the old power supply factory Dongguan Shilong Fuhua as an example. At present, the annual output of its high-power LED outdoor power supply is about 300,000 units. For example, a LED street light with a power supply is conservatively calculated according to the shipment of 2.5 million LED street lamps in China in 2013. Its market share in the outdoor LED high-power power market is only 12%.

While several other LED power supply manufacturers are well-known in the industry, no one manufacturer has been able to dominate the market in China. This is reflected in the feedback from the current LED LED street manufacturers.

One of the procurement leaders of Qinshang Optoelectronics, which once dominated the LED streetlight market, said frankly that there are many suppliers of driving power for LED streetlights, and several LED power plants in China have a cooperative relationship with them.

In fact, the reason for the domestic high-power outdoor LED lighting power supply is not strong, but the reason lies in the power supply enterprise's own strength, and on the other hand, the current outdoor LED driver power has been tapped into the market space is not big enough, LED outdoor The market penetration of lighting is still low.

“According to the cumulative installation volume, the penetration rate of China's LED streetlight market in 2012 is less than 10%, but not more than 15% in 2013.” Zhang Hongbiao, research director of Gaogong LED Industry Research Institute (GLII), said that in the future, high-power outdoor LED lighting The domestic market potential needs to be tapped.

However, while the current penetration rate of the LED street lamp market is slow, the profit margin of the LED high-power power supply related to it has shrunk severely.

"In recent years, there have been many new LED street lamp power supply manufacturers in the mainland market. As the price of LED street lamps has gradually declined, the related LED street lamp factories have to lower the price of LED driving power. Many street lamp biddings are local government actions, in order to support The power of the local small factory will also be used.” Wang Xingang, general manager of Shenzhen Jingchen Electronic Technology Co., Ltd. said that the small factory’s involvement has lowered the average price and gross profit margin of the market power supply, and the price of the bidding is gradually lower. Compressed the company's profits.

Li Tao, general manager of Dongguan Shilong Fuhua Marketing, told reporters that the current average gross profit margin of outdoor LED street lamps has dropped to around 25%. The gross profit margin of Maosuo Power, the only listed company in China's LED driver power supply, was relatively high, reaching 29.12%, down 3.67% year-on-year, but it was also shrinking compared with the previous year's gross margin of 45%-50%. Nearly 20%.

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