Thanks to supportive policies and government backing, China's LED market has seen remarkable progress. LED lighting solutions have been widely adopted across various sectors like industrial, commercial, and residential applications. This growth in downstream usage has significantly expanded the scale of China’s LED lighting market.
According to data from the High-tech Research Institute’s LED Research Division (GGII), the value of China's LED lighting market reached 245.4 billion yuan in 2016, marking a 16.6% increase year-over-year, with sustained rapid growth. Looking ahead, driven by ongoing governmental support, increasing environmental consciousness, falling product prices, and improving product quality, the size of China's LED lighting market is anticipated to continue expanding. By 2020, the industry’s market size is projected to surpass 461.4 billion yuan.
LED driver power supplies are essential components of LED lighting systems. With the growth of the LED lighting market, the LED driver power supply sector has also experienced rapid expansion. GGII statistics show that in 2016, China's LED lighting power supply output value was 19.8 billion yuan, representing 61% of the global total.
China’s driver power market has witnessed rapid development in recent years, intensifying competition within the industry. Particularly in the small and medium power segment, where technical requirements are relatively low, competition is especially fierce. Small and medium power LED driver power supplies are primarily used for indoor lighting, creating a vast market. However, due to lower technical thresholds, numerous companies have entered this space, resulting in intense price competition. Many firms have seen their gross profit margins drop to around 15%.
Since 2016, many companies have gradually exited the market. However, some firms have managed to grow rapidly through technological innovation and product quality improvements, such as Serby. Between 2014 and 2016, the company’s operating income increased from 88.82 million to 133 million, achieving compound growth of 22.5%. Gross profit margins jumped from 26.35% to 39.21%. In such a challenging environment, achieving these results is commendable and worth studying by peers.
In the high-power driver power market, high-power LED drivers are mainly used for outdoor lighting and landscape illumination, requiring adaptation to harsh environments. These products have higher R&D and production thresholds, complex processes, and fewer participants. Although competition is less intense compared to the low-power market, the previously tight supply-demand dynamics and rapid downstream demand growth have drawn some traditional power suppliers into this field. However, due to technical and technological limitations, some LED driver power companies have faced more challenges. After several years of development, the market share has gradually concentrated among a few leading enterprises.
Currently, leading companies in the high-power LED driver power supply industry have bolstered their working capital through capital operations and expanded production on a large scale. Other enterprises have also improved their production technologies and processes, enhancing product quality stability and strengthening market competitiveness.
I. Analysis of the Competitive Landscape of China's LED Lighting High-Power Driver Power Supply Market
High-power LED driver power supplies represent a significant market within the LED driver power supply industry. Due to high technical barriers, brand barriers, and product certification barriers, the market concentration is relatively high. At present, China’s major LED driver power supply companies include Infineon, Moso Power, Shanghai Mingzhi, Yusheng Electronics, Jiansen Technology, Guangzhou Kaisheng, and Shilong Fuhua, among others. Through long-term tracking of domestic LED driver power companies, GGII considered multiple factors such as technology, market share, product quality, and industry reputation to select the top five enterprises in China's LED lighting high-power driver power supply competitiveness in 2016 (this list does not include foreign companies or Taiwan enterprises).
01. Hangzhou Yingfei Te
Founded in September 2007, Infineon Electronics is located in Hangzhou and is a key high-tech enterprise under the National Torch Program, specializing in R&D, production, sales, and technical services for LED driver power supplies. Its sales volume ranks third globally.
Infineon mainly focused on developing outdoor lighting high-power driver power supplies before 2010. The products were primarily used for LED streetlights and tunnel lights. In 2011, the company also ventured into indoor low-power lighting power supplies. Products are mainly used in lamps, downlights, bulbs, and panel lights. In 2016, the company’s revenue reached 632 million yuan, a year-over-year increase of 24%, with large and medium power LED driver power sales totaling 618 million yuan, accounting for 97.8%.
02. Shenzhen Maoshuo
Shenzhen Maoshuo Power Technology Co., Ltd. was established in April 2006 and is headquartered at the Maoshuo Science and Technology Park in Nanshan District, Shenzhen. The company’s high-power LED driver power products are categorized into constant voltage sources, constant current sources, constant current modules, and intelligent control drives, mainly used for high-power LED streetlights and tunnel lights. Key clients include Qinshang Optoelectronics, Foxconn, BYD, Zhenmingli Group, Dehao Runda, Guoxing Optoelectronics, Shandong Zhongwei, Beijing Langboer, and Xi’an Liming, among others.
Moso Power currently has two production bases, one in Shenzhen and another in Huizhou. The factory area of the Shenzhen headquarters is approximately 30,000 square meters, while the Huizhou facility is about 50,000 square meters and still under construction. In 2016, Moso Power’s LED power supply sales amounted to 259 million yuan, an increase of 62.86%.
03. Shanghai Mingzhi
The predecessor of Shanghai Mingzhi was Mingzhi Limited, established on July 7, 1998, with its headquarters in Shanghai. The company’s LED driver power products span outdoor functional lighting, landscape lighting, intelligent building lighting, automotive lights, medical lighting, CCD precision lighting in industrial automation, and more, selling to markets in Japan, Europe, the U.S., Southeast Asia, and beyond. Clients include domestic and international well-known intelligent system manufacturers, LED application manufacturers, and globally renowned electronic component distributors, including Stanley, Arrow, Acuity Brands, Schereder, Secom, Iguzzinni, Op, Shanxi Guangyu, and Haoyang Electronics.
The company’s LED driver power supply is primarily focused on outdoor functional drive power. Currently, programmable LED drivers and LED intelligent lighting control and drive systems are being promoted. In 2016, the company’s basic driving revenue was 103 million yuan, a year-over-year increase of 141%, and intelligent lighting control and driving business revenue was 76.53 million yuan, a year-over-year increase of 30%.
04. Yusheng Electronics
Shenzhen Yusheng Electronics Co., Ltd. was established in 2011 and is headquartered in Shenzhen. It employs over 500 people and is a high-tech enterprise engaged in R&D, production, sales, and service. With 50 million yuan in fixed assets, Yusheng Electronics specializes in R&D, production, and sales of high-power LED driver power supplies. While maintaining its own brand, the company also collaborates long-term with brands like Shenzhen Yaohao and Ningbo Lesotho Lighting, gradually gaining market trust through reliable product quality and service. Total sales have steadily increased annually, making it a well-known supplier of LED driver power supplies in South China.
05. Jiansen Technology
Established in 2010, Shenzhen Jiansen Technology Co., Ltd. is a Sino-foreign joint venture funded by China, Japan, and Taiwan. The company is a national high-tech enterprise integrating R&D, production, sales, and service. Currently, the company’s growth momentum is robust, emerging as a dark horse in the high-power LED driver power supply market. In 2016, Jiansen Power’s growth rate exceeded 100%. Cooperation targets are primarily domestic Tier 1 manufacturers, mainly in South China, North China, Southwest China, and East China. In terms of exports, the focus is on European and American regulations.
II. Analysis of the Competitive Pattern of China’s LED Lighting Medium and Small Power Driver Power Supplies
Medium and small power LED driver power supplies are primarily used in the field of indoor functional lighting. Due to lower technical barriers and more entrants, market shares are relatively dispersed. In 2015, it was a challenging year for most LED lighting companies, and small and medium power LED driver power companies also felt the pressure. That year, over 10% of LED driver power companies (mainly small and medium power LED driver power companies) withdrew from the market. In the second half of 2016, with the overall recovery of the LED industry, small and medium power driver power companies had opportunities to recover. However, the overall situation of intense price competition and low gross margins has not improved significantly.
Facing fierce price competition, power supply manufacturers continuously adjust their pricing strategies. Power supply costs have bottomed out, and what's worse, some raw material prices continued to rise in 2016, along with rising labor costs. Thus, there will likely be a large number of small-scale power supply manufacturers going bankrupt in the coming years.
In fact, in 2016, two main LED small and medium power driver power companies, Deli Optoelectronics and Ruigu Technology, decided to clean up and convened suppliers for debt reporting and liquidation due to overcapacity and industry triangle debts. In the future, the LED power supply industry will trend toward greater consolidation, meaning larger factories will dominate, while smaller factories may be swallowed up or closed down.
In 2016, it was a tough year for many small and medium-sized LED power companies. However, for companies with a certain scale and good customer quality, it was a year of struggle, reduced competition, and market concentration. This has boosted confidence in the future market for these companies.
GGII selected the top five enterprises in China’s LED small and medium power driver power supply competitiveness in 2016 through long-term tracking of domestic LED driver power companies, considering comprehensive technology, market share, product quality, and other factors.
01. Igor
Igor Electric Co., Ltd., originally named Risheng Electric Manufacturing Co., Ltd., was established in 1999 with a registered capital of 98.99 million yuan. The company has three production bases in Shunde, Nanhai, and Chancheng. Its main product series include five types: inductive mode power supplies, electronic mode power supplies, special transformers, power transformers, and transformer core components, widely used in lighting, electricity, new energy, industrial control, and other industries.
GGII research shows that Igor’s LED driver power products include European, Chinese, American, and waterproof series, mainly used in ceiling lights, downlights, outdoor landscape lights, street lights, etc. In 2016, Igor’s LED driver power supply sales reached approximately 400 million yuan.
02. Leyford Optoelectronics
Shenzhen Laifu Photoelectric Co., Ltd. was established in 2007 with a registered capital of 48 million yuan. It has established R&D and production bases in Shenzhen and Sichuan. Currently, it has over 1,000 employees, with office and factory areas exceeding 40,000 square meters and an annual output value of 250 million yuan. The company’s main products are LED lighting power supplies such as lamps and panel lights.
GGII research shows that Leyford enjoys a good reputation in the industry, particularly for its LED panel light power supply, making it one of the domestic leaders in LED indoor functional lighting power supplies.
03. Saiby
The company is a national high-tech enterprise mainly engaged in R&D, production, sales, and service of LED driver power supplies. The company and its predecessor’s main business involved the development, production, and sale of inductor transformers, primarily providing supporting services for LED driver power manufacturers. Leveraging its accumulated advantages in the inductor transformer industry, the company gradually explored the downstream LED driver power industry in 2010, making significant progress in the design and production process of LED driver power supplies. It started operations in 2011, extending into the LED driver power supply industry. In 2016, the company’s operating income reached 133 million yuan, with a gross profit margin of 39%.
04. Kegu Power Supply
Guangdong Kegu Power Co., Ltd. was established in 2008 with a registered capital of 10 million yuan. It is a high-tech enterprise with integrated R&D, production, sales, and service capabilities, developing and producing LED driver power supplies with independent intellectual property rights. These power supplies are stable and have received authoritative certifications from domestic and international bodies such as ENEC, CCC, UL, TUV, CE, CB, SAA, SEMKO, and RoHS. In 2016, Kegu Power’s LED driver power supply sales were about 103 million yuan.
05. Ochs
Ochs is one of the first companies in China to develop, manufacture, and sell LED lamps. As LEDs became more familiar and accepted by consumers, competition in the LED lighting market intensified. Ochs shifted its focus to the development and production of high-end LED dimming power supplies. In 2008, the company changed its name to Ochase Industries. After over 10 years of development, Ochase Industrial has become a leading supplier of LED dimming power supplies and control systems and a provider of intelligent lighting solutions.
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