How does the market demand for LED products compare between domestic and overseas markets?

China boasts a huge domestic demand base. Core rigid demands cover basic lighting, commercial LED displays, outdoor landscape lighting and smart home LED products. Infrastructure projects, urban lighting renovation, real estate supporting facilities and shopping malls continuously absorb large volumes of LED lighting and display products. Segmented products including Mini/Micro LED, COB/GOB protected screens, plant grow lights and educational all-in-one machines have achieved rapid growth in recent years. However, the industry faces fierce oversupply and severe price competition with thin profit margins. Market growth is mainly driven by product replacement demand.

Global overseas demand maintains steady growth. European and American markets prioritize high-end commercial LED screens, industrial lighting and high-protection outdoor lamps. Southeast Asia, the Middle East and Latin America mainly demand affordable general lighting and rental performance display screens. Developed countries impose strict requirements on energy efficiency certifications, environmental standards and IP protection ratings. The profit margin of each LED product sold overseas is much higher than that in the domestic market. Demand growth stems from infrastructure popularization worldwide, expansion of the advertising media industry and rising sales via overseas retail channels, while emerging markets retain massive untapped growth potential.