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Following the acquisition of NVC by Dehao Runda and Sanan Optoelectronics, the recent acquisition of shares in Hong Kong by Tongfang shares in the industry seems that the integration of LED industry this year will be greater than last year. From the organizing committee of the Guangzhou International Lighting Exhibition, which will be held in June, the world's largest lighting exhibition and LED exhibition, the scale of this year's exhibition will reach a new high, reaching 225,000 square meters, covering 22 exhibition halls, as of the end of April 2014. The number of exhibitors reached 2,237, and the area of ​​enterprises in the brand exhibition area increased by 10, and domestic enterprises became the main force of the brand pavilion. LED lighting continues to lead the lighting trend, and the pace of industry consolidation is accelerating. Guangzhou International Lighting Exhibition covers the LED industry chain products and technologies, presenting the latest status and future trends of the lighting and LED industry. Mr. Hu Zhongshun, the general manager of the organizer Guangzhou Guangya Messe Frankfurt Co., Ltd., said that more than 100 high-end seminars in the 2014 Guangzhou International Lighting Exhibition were comprehensively reformed, focusing on four major themes: lighting design, lighting technology, lighting market, lighting communication. In addition, the industry has achieved better interaction and development in lighting concepts and business practices. Guangzhou International Lighting Exhibition is the vane of the development of the lighting industry. In the theme design and event arrangement of the exhibition, the market development trend and market demand will be fully considered to actively guide the development of the industry. Dr. Pan Wenbo, founder of Guangzhou International Lighting Exhibition and dean of Guangya Lighting Research Institute, believes that the increase of listed companies and the demand for market energy-saving transformation are all catalysts for the accelerated integration of the industry. In the first year of industry integration, the survey found that the cost performance of LED lighting has been accepted by the market, resulting in actual demand, without relying on government promotion, and the elimination of incandescent lamps has played a facilitating role. According to the statistics of Guangya Lighting Research Institute, the domestic LED application market scale exceeded 200 billion yuan last year, of which indoor lighting accounted for nearly 30%; by 2015, the proportion of indoor lighting will further increase to 40 or more. According to the "China's roadmap for phasing out incandescent lamps", from October 1, 2014, the import and sale of incandescent lamps for general lighting of 60 watts and above will be banned. Indoor lighting has become one of the biggest thrusts in the growth of China's LED application market. At the same time, the market is getting hotter, and companies that have not had time to increase supply will go to the acquisition; some projects that were purchased last year will also land this year, so industry consolidation will accelerate this year. Before the Spring Festival, Tongfang shares announced that it intends to acquire the equity of Zhen Mingli 51 for 700 million yuan. This is the same as Dehao Runda's merger with NVC Lighting. Dehao Runda is interested in NVC's domestic channels, while Tongfang shares look at it. Among them is the channel of Zhen Mingli overseas. Almost at the same time, Sanan Optoelectronics successfully completed a new round of additional issuance around the Spring Festival this year, raising 3.3 billion yuan, intending to double the current LED chip production capacity. 2013 is just a prelude to industry integration, and 2014 is the real year of integration. Pan Wenbo believes that although the overall market size will continue to expand in the future, the competition will be extremely fierce and many companies will be eliminated. From the perspective of the decentralized nature of the industry, many enterprises in the niche area will become the target of priority mergers and acquisitions, and these enterprises may find it difficult to become bigger and stronger on their own. Therefore, the intensity of integration is unprecedented, and it will play a decisive role in promoting the process from scattered to concentrated. Two forces driving integration: Policy and capital accelerate the integration of the industry, Dr. Pan Wenbo believes that it is related to both policy and capital. In the 2013 government procurement of LED lighting projects, there are a number of LED lighting energy-saving retrofit projects that have chosen the (EMC) contract energy management model. However, this model requires a large amount of capital for enterprises. Enterprises without funds either choose to cooperate with energy management companies or go public. It is worth noting that the recent opening of the IPO has also facilitated the listing of LED companies. In the list of IPO filings of enterprises recently announced by the China Securities Regulatory Commission, the names of Abbyson and Mulinsen are listed. Pan Wenbo said that after the IPO is opened, there will be a large number of LED companies listed, the industry's capital strength will become stronger and stronger, and the industry integration will last longer. From the perspective of the decentralized nature of the industry, many enterprises in the niche area will become the target of priority mergers and acquisitions, and these enterprises may find it difficult to become bigger and stronger on their own. Therefore, the intensity of integration is unprecedented, and it will play a decisive role in promoting the process from scattered to concentrated.