As smart home appliances gradually become more popular, consumer acceptance of smart homes has greatly increased. More and more home categories have entered the era of intelligence, and the lighting industry is also gradually transitioning to digitalization. Smart lighting, as a core element of the smart home scene, has now become an important development trend in the lighting industry.
I. Industry Chain
The upstream of smart lighting is composed of raw materials, components, control systems, and models. The midstream part can be mainly divided into smart lighting devices and smart lighting platforms according to different products. The downstream part can be divided into landscape lighting, functional lighting, emergency lighting, etc., according to different application scenarios.
II. Upstream Analysis
1. Copper Materials
Copper materials, made from pure copper or copper alloys, include various shapes such as rods and wires. The "2019-2023 China Copper Material Industry Market Prospect Survey and Investment and Financing Strategy Research Report" released by the China Business Industry Research Institute shows that in 2022, China's copper material production reached 22.865 million tons, a year-on-year increase of 7.68%. From January to October 2023, the production of copper materials reached 18.519 million tons, a year-on-year increase of 5.4%.
2. Aluminum Materials
Aluminum materials are products made from aluminum and other alloying elements. According to the "2019-2023 China Aluminum Material Market Prospect Survey and Investment and Financing Strategy Research Report" released by the China Business Industry Research Institute, in 2022, China's aluminum material production reached 62.216 million tons, a year-on-year increase of 1.91%. From January to October 2023, the production of aluminum materials reached 52.048 million tons, a year-on-year increase of 5.7%.
3. Plastic Products
Plastic products refer to items used in daily life and industry that are processed using plastic as the primary raw material, including products made from all processes such as injection molding and vacuum forming. The "2022-2027 China Plastic Products Industry Market Depth Analysis and Development Trend Forecast Report" released by the China Business Industry Research Institute indicates that in 2022, the national production of plastic products was 77.716 million tons, a year-on-year decrease of 4.3%. From January to October 2023, the national production of plastic products reached 60.907 million tons, a year-on-year increase of 1.2%.
Plastic products are a significant part of the smart lighting industry, often being used in the manufacturing of lighting fixtures and components. The market trend for plastic products reflects the demand and production capacity in this sector, providing insights into the overall health of the lighting industry. It's important to note that the environmental impact of plastic production and disposal is a significant concern, and the industry is increasingly seeking sustainable and recyclable alternatives.
4. LED Chips
(1) Market Size
Benefiting from the growth in downstream lighting export demand and the rebound of the domestic consumer market, the overall lighting industry market has warmed up. The "2022-2025 China LED Chip Market Analysis and Development Strategy Research Report" released by the China Business Industry Research Institute shows that in 2022, the market size of China's LED chips was approximately 23.1 billion yuan, a year-on-year increase of 2.67%. Analysts at the China Business Industry Research Institute predict that the market size of LED chips will reach 23.5 billion yuan in 2023 and 24.1 billion yuan in 2024.
LED chips are a critical component in the production of LED lights, which are widely used in smart lighting systems due to their energy efficiency, long life, and compatibility with control systems that can adjust brightness and color. The growth in the LED chip market is indicative of the expanding demand for LED lighting solutions, which are integral to the smart lighting industry. As smart lighting continues to penetrate the market, the demand for high-quality LED chips is expected to remain robust, further driving the growth of this segment.
(2) Competitive Landscape
In recent years, with the elimination of backward production capacity, the enhancement of technological barriers for high-end LED applications, and the emergence of scale advantages of leading enterprises, the industry position of leading enterprises has further stabilized. At present, Sanan Optoelectronics, Huacan Optoelectronics, and Zhaochi Shares occupy 32%, 14%, and 12% of China's LED chip production capacity, accounting for nearly 60% in total. They are followed by Qianzhao Optoelectronics, Weilan Lithium Core, and Jucan Optoelectronics, with shares of 11%, 10%, and 7% respectively.
5. Sensors
In recent years, with the continuous driving of intelligent and digital demands in new energy vehicles, industrial automation, medical treatment, environmental protection, and consumer sectors, the market size of China's intelligent sensors has maintained steady growth. The "2024-2029 China Intelligent Sensor Market Survey and Industry Outlook Forecast Special Research Report" released by the China Business Industry Research Institute shows that in 2022, the market size of China's intelligent sensors reached 119.02 billion yuan, an increase of 16.64% over the previous year. Analysts at the China Business Industry Research Institute predict that the market size of China's intelligent sensors will rise to 142.96 billion yuan in 2023 and 164.31 billion yuan in 2024.
6. Smart Controllers
(1) Market Size
In recent years, the global smart controller industry has gradually shifted towards China, leading to continuous growth in the Chinese smart controller market. According to the "2023-2028 China Smart Controller Industry Outlook Forecast and Strategic Investment Opportunities Insight Report" released by the China Business Industry Research Institute, the market size of China's smart controllers reached 3.1813 trillion yuan in 2022, with a year-on-year increase of 17.5%. Analysts at the institute predict that the market size will reach 3.5095 trillion yuan in 2023 and 3.7850 trillion yuan in 2024.
(2) Competitive Landscape
Overall, the market concentration of China's smart controller industry is relatively low. There are many smart controller manufacturers competing in the market with varying levels of research and development and production capabilities, and an industry oligopoly has not yet formed. The smart controller industry's listed companies mainly include Hong Kong Kingboard Holdings, Topband, H&T (He and Tai), Goodix Technology, Longtech Smart, In-Tech Smart Control, Zhenbang Intelligent, and Longtech Intelligent, among others.
Smart controllers are integral components of smart lighting systems as they enable the automation and management of lighting devices through software platforms and user interfaces. These controllers can range from simple dimmers to complex systems that integrate with other smart home technologies. As the market grows, the competition among manufacturers highlights the importance of innovation and the development of advanced technologies to capture market share.
III. Midstream Analysis
1. Market Size
In recent years, with the support of national policies, the rising demand for intelligent lighting from consumers, and the continuous research and development and improvement of emerging lighting technologies, China's intelligent lighting industry has accelerated its growth. According to the "2023-2028 China Intelligent Lighting Industry Market Outlook Forecast and Future Development Trend Report" released by the China Business Industry Research Institute, the market size of China's intelligent lighting in 2022 was 39.8 billion yuan, a year-on-year increase of 12.4%. Analysts at the institute predict that the market size of China's intelligent lighting will grow to 42.5 billion yuan in 2023, and is expected to reach 47.9 billion yuan in 2024.
2. Shipment Volume
With the gradual popularization of smart appliances, consumers' acceptance of smart homes has greatly increased. More and more home categories have entered the intelligent era, and the lighting industry has gradually transformed digitally. According to the "2023-2028 China Intelligent Lighting Industry Market Outlook Forecast and Future Development Trend Report" released by the China Business Industry Research Institute, the shipment volume of China's intelligent lighting in 2022 was about 27.995 million units, a year-on-year increase of 46.6%. Analysts at the institute predict that the shipment volume of China's intelligent lighting will grow to 33.79 million units in 2023, a year-on-year increase of 20.7%, leading the growth of China's smart home equipment market. By 2024, the shipment volume of intelligent lighting is expected to reach 39.57 million units.
3. Market Structure
The increase in the number of home lighting devices and the combination of multiple devices make the demand for intelligent home lighting more prominent, and the process of intelligent development will be accelerated. Ceiling lights have the largest share, accounting for 28.8%. They are followed by switches, downlights/spotlights, bulbs, table lamps, track lights, night lights, light strips, and floor lamps, with shares of 19.3%, 16.5%, 14.8%, 9.9%, 5.2%, 2.8%, 2.2%, and 0.2% respectively.
4. Number of Registered Companies
In recent years, technologies such as 5G, AI, and IoT have fully empowered intelligent lighting. The intelligent lighting market has huge potential, and capital is optimistic about the intelligent lighting industry, with a large number of related companies emerging. Data shows that in 2022, the number of registered companies related to intelligent lighting grew rapidly, reaching 55,800. The latest data shows that from January to October 2023, 87,100 new companies were registered in the field of intelligent lighting.
5. Analysis of Key Enterprises
The main listed companies related to intelligent lighting in China are mainly distributed in Guangdong Province, with a total of 26. Followed by Zhejiang Province, with a total of 8.
IV. Downstream Analysis
1. Downstream Application Status
In China, the downstream application areas of smart lighting are primarily concentrated in the industrial and commercial sectors, residential and home domains, outdoor lighting, and public lighting fields. Among these, industrial and commercial lighting represents the largest application field for the smart lighting industry, accounting for approximately 57.21%; followed by home lighting, outdoor lighting, and public lighting, with respective shares of 21.36%, 12.16%, and 9.27%.
2. Home Lighting
In 2022, affected by the pandemic, the development of the lighting industry was in a relatively stagnant phase. However, with the end of the pandemic, the "China Lighting Market Analysis and Development Trend Forecast Report 2024-2029" released by the China Business Industry Research Institute shows that the market size of China's home lighting industry was 36.28 billion yuan in 2022, with a year-on-year growth of 0.58%. Analysts at the China Business Industry Research Institute predict that the market size will reach 36.47 billion yuan in 2023 and 36.97 billion yuan in 2024.
3. Outdoor Lighting
Outdoor lighting refers to lighting that is outside of indoor lighting, which needs to meet the needs of outdoor visual work and achieve decorative effects. The "China Lighting Market Analysis and Development Trend Forecast Report 2024-2029" published by the China Business Industry Research Institute shows that the market size of China's outdoor lighting industry was 164.305 billion yuan in 2022, with a year-on-year growth of 13.05%. Analysts at the China Business Industry Research Institute predict that the market size will reach 177.574 billion yuan in 2023 and 192.98 billion yuan in 2024.
