" The rapid development of the lighting industry in 2013 , driven by the downstream production can be fully exploited , but also to excess capacity has slowed this year, the size of the entire LED industry is more than 2000 million , next year will be more than 320 billion , with indoor lighting outdoor lighting accounts a large proportion . " said senior engineer Zhang Xiaofei , chairman LED on G20-LED summit prior .
   According to Engineering LED Industry Institute released a report , expected in the fourth quarter of this year, the overall LED industry output will grow by about 20% , the annual total industry size of over 260 billion yuan , an increase of 28%. LED interior lighting and the annual output value will be increased by 110%. Expected to next year , although the LED interior lighting output base in year after year, but output growth will remain at around 60%.
   However , in a series of bright behind the data , the industry 's income does not increase profits issues are still outstanding . Zhang Xiaofei , said in 2013 although the company orders a lot of revenue growth , but fierce price war , corporate profits increasingly thin .
   Data show that SWS LED industry 20 listed companies in the first three quarters of this year, operating income totaled 14.195 billion yuan , an increase of 20 % over the first three quarters of last year, 11.811 billion yuan ; attributable to shareholders of the parent company 's net profit was 1.687 billion yuan , an increase of 6 % over the first three quarters of last year, 1.59 billion yuan , profit growth was lower than revenue growth .
   In this regard , the industry generally believe that the price war , as well as expenses for the period increased by reducing government subsidies is an important cause of LED business income not increasing profits .
  However, the vice president of Tsinghua Tongfang Lianghai and Tin Pan Jianqing , chairman Holdings have said for nearly two years is the industry's most painful period , after this process , the industry profit situation has improved.
   The deputy祝炳忠Kingsun also pointed out that from the third quarter , corporate profits have emerged better, " the channel, we will gradually increase investment . Would increase investment in other areas , the trend will remain quite well in the future. "
   Guangzhou Hongli Opto-electronic Chairman Li Guoping said that the back will continue throwing money investment , purchase and optimize equipment to obtain scale advantages , in order to reduce overall costs , better profits.
   In the case of LED lighting end-market demand for rapid growth , industry concentration does not significantly improved. It is understood that domestic LED enterprises have around 50 upstream , midstream packaging enterprises 1750 , the number of downstream applications up to 15,000 enterprises . But there is no one vendor's market share of over 5%.
   Xiaofei is expected next year shift from traditional lighting LED lighting business peaked , while the number of LED sales-oriented enterprises will reach its peak , with the intensified market competition , industry consolidation will continue to increase, "Most of the upstream business will die , the ultimate survival of the local chip manufacturers is expected at around 30% ; midstream , and downstream companies only formed a strategic alliance in order to survive , more than 1000 LED packaging companies will be eliminated ; downstream applications companies will also face major reshuffle is expected to LED lighting business in the future 5 years deaths will exceed 50% , the traditional lighting companies deaths will exceed 30% . "