China's eight industries will be devastated

Chinese Premier Li Keqiang stated at the World Economic Forum in Tianjin that China will intensify technological innovation and upgrade industrial technology, quality and brand level.

This remark shows that the Chinese government will continue to pay attention to technological innovation. Now, China’s R&D spending has reached about 42% of the United States. Our research on Chinese corporate innovation shows that at least eight types of innovations have emerged so far. China’s success has so far been built on non-technical innovations.

Some emerging technologies and trends will change consumer behavior and force companies to “fit or die”. Analysts likened these innovative technologies to earthshaking changes that could “make Polaroid’s decline of imaging cameras and Wal-Mart’s rise”.

Goldman Sachs analysts called the eight industries of “creative destruction”, and “creative destruction” means that these companies are large enough in scale and destructive that they can recreate the industry and attract more and more investors. The eight “creative destruction” industries are electronic cigarette, cancer immunotherapy, reinsurance industry, natural gas engine technology, internet software, 3D printing, big data, and LED lamps.

For the LED lamp industry, according to the statistics of the number of global LED street lamps installed by industry organizations in 2014, the current global street lamp installation capacity is about 200 million baht, of which Europe is about 65 million baht, accounting for more than 30%, and the United States is about 44 million baht. This accounted for about 20% of the total, about 4 million in Japan, about 33 million in China, and more than 16% in the world.

In recent years, the penetration rate (number of installations) of LED street lamps in China has been continuously increasing, exceeding 7% in 2011 and 11% in 2012. The penetration rate of LED street lamps in 2013 was approximately 19%, and the market size was approximately RMB 14 billion. . According to preliminary calculations, the market size of China's LED street lamps will be approximately 23 billion yuan by 2015; by then, the overall market penetration rate of China's LED road lighting products will exceed 45% and the market space is huge.

Goldman Sachs analyst Brian Lee is optimistic about the development prospects of LED lamps. LED has undergone several changes so far, starting with mobile phones in the 2000s and expanding to televisions, it is now moving toward the general lighting field. Li said that this is a diversified era that can make those products that are economical and energy-efficient.