In recent years, LED industry reshuffle has been always ongoing, which presents the feature of “survival of the fittest”; meanwhile, the number of new comers in the industry keeps increasing, which leads to fiercer competition. On one hand, large-scale enterprises have the advantages in capital, technology and talent, which allows them to conduct mergers and acquisitions as well as extending the industrial chain with a view to occupy the leading position; on the other hand, small-scale enterprises with low cost performance are continuously crushed or even eliminated. As an important part of the industry, LED driving power field also faces such problems.

For deep analysis on the market situation, LEDinside editor visited Shenzhen Moso Power Supply Technology Co., Ltd., one of the leaders of LED power supply industry, and interviewed Mr. Wu Chunxiao, Deputy Marketing GM of Moso on November 21st, 2017, deeply communicating and discussing the current market situation of LED power supply and its future development.

Mr. Wu Chunxiao, Deputy Marketing GM of Shenzhen Moso Power Supply Technology Co., Ltd. (Image: Moso Power/ LEDinside)

Ensure Market Share for General Market While Ensuring Profits for Market Segments

Since 2017, the overall LED industry has improved and the industrial expansion accelerated. In addition to the stimulus of large scale, the increase in market demand happens to be a catalyst. Thus, with the continuous increase in demand, especially the growth of municipal landscape lighting projects, the demand for LED power supply also keeps rising.

According to Wu Chunxiao, in terms of application area of the general market, Moso performs well in road lighting, landscape lighting, and industrial lighting areas in which high power supply is most needed; and the performance of these areas is also the assurance for the market share and overall business volume. This is the status quo of both Moso and the industry.

In regard to market segments, Moso has been laying out public lighting for urban rail transit since 2015 which is a very successful sub-divided area of Moso in recent two years. Among public lighting, subway lighting is the most commonly used. "Moso’s power supplies were implemented in Shenzhen Metro Line 9 and 11, Kunming Metro Line 3, Xiamen Metro Line 1, and Chengdu Metro Line 7”, said Wu Chunxiao.

Then considering Moso’s market share, its domestic market accounts for about 70 percent while the rest 30 percent belongs to oversea markets, among which Moso has outstanding performance in Europe and Russia markets.

Regarding the next step of development, Moso will concentrate on oversea markes in the coming future and allocate more budget for building oversea brands. For emerging markets, Moso attaches particular importance. For example, Moso has developed an independent and complete EHC series product for Indian market, which has special requirements on high voltage (440Vac) input over voltage protection.

Due to its accurate positioning, Moso has maintained steady growth in revenue and achieved profit growth in recent years. Wu Chunxiao said that Moso achieves profit growth by the following two aspects: ensure market share for the general market while ensuring profits for  market segments and oversea markets. With respect of lighting for rail transit, a typical example, Moso realized profits by increasing added value and differentiated competition.

Reshuffle of LED Low Power Supply is Far from over and High Power Supply has not yet Entered the “Red Sea”

When it comes to the current situation of LED driver under the reshuffle of the whole LED industry, Wu Chunxiao explained that in the area of high-power outdoor lighting, enterprises like Moso and MeanWell have formed “the first camp”, and the industrial pattern has been basically formed. As a result, with a limited number of suppliers in this area, LED high power supply has not yet entered the “Red Sea”. However, the reshuffle of the low power supply market is far from over. This is because, compared with high power supply, both the technology and the input cost for low power supply are relatively lower. In addition, there is almost no leading-edge brand or enterprise in this area, so low power supply market certainly has many opportunities.

Facing such situation, Moso will stay focused on high power supply, maintain its advantages in this area and do what it’s good at. However, in the area of low power supply, especially general indoor commercial and household lighting experience low profit owing to low technical threshold and furious competition. With Moso’s current supply chain system and manufacturing systemt, it is relatively difficult for it to achieve its profit target. Therefore, Moso only makes valuable customization or strategic customization in this area.

Wu Chunxiao added that LED driver has basically entered a fairly mature stage in terms of performance index and reliability. The industry moves toward its maturity with price getting lower and lower, and then goes into the stage of small profits, which is in line with the law of product development.

Smart Lighting is now in its Beginning Stage Where Enterprises need to Find a New Entry Points

With the rapid development of IoT and digital technology, international magnates of lighting industry such as Philips Lighting, Osram and GE have laid out smart lighting in succession. Smart lighting has become an "attraction" for many lighting manufacturers rather than just a concept.

In this regard, Wu Chunxiao commented that smart lighting is now in its beginning stage where many companies will get involved. In response to such situation, smart lighting and outdoor lighting can be taken as the breakthrough. In addition, intelligent industry depends on two factors including control system and driving power, with the former being the hub and the latter being the executor. A control system is very difficult to be developed. It requires highly top-level design capability, including technology and market awareness, huge upfront cost and long development time. Besides, it will be exposed to market risk.

Moso has also made efforts in smart lighting like power supply DALI for rail transit. Moso’s strategy for smart lighting is to make progress while maintaining stability. At present, Moso will be committed to its area of expertise, fully focusing on smart power supply and move forward with its control system.

Smart lighting has become a trend. So what is the future for power supply manufactures? Wu Chunxiao explained that traditional power supply has reached the extreme and manufactures need to seek a new entry point if they want to keep on developing: first, avoid entering the “Red Sea” market; second, enter emerging markets and seize differentiated demands; third, increase additional values for products.