Briefing on the Economic Operation of China's Lighting Industry in 2022

In 2022, the Chinese lighting industry faced overall pressure and a slowdown due to numerous uncertainties such as the complex and changing global economic situation, frequent domestic outbreaks of the pandemic, and an unpropitious domestic real estate market. Amidst this difficult and volatile environment, the industry persisted in innovation and development, steadily released its resilience, and continuously improved development quality. According to estimates, China's lighting industry sales reached approximately 639 billion RMB in 2022, a year-on-year (YoY) decline of 6%. Among them, total exports amounted to 62.7 billion USD, a YoY decline of 4%. This article provides a brief introduction to the economic operation of China's lighting industry in 2022; more detailed analysis will be published in the journal of the China Association of Lighting Industry (CALI), "China Lighting".

I. Business confidence index declines, industry economic pressure slows down

In 2022, the overall sentiment of the lighting industry declined, hovering between the stable and cooling zones. Among the four sub-indexes—Revenue, Profit, Export, and Assets—only the Asset sentiment index remained in the stable zone. The Revenue sentiment index fell into the cooling zone, while both the Export and Profit indices dropped into the overcooling zone, indicating significant pressure on industry development.

(Data source: China Light Industry Information Center )

II. production growth rate declined, electric light source output fell

In 2022, the year-over-year growth rate of industrial value added by enterprises above a designated size in China's lighting industry exceeded -5%. Production growth gradually slowed, remaining far below that of all industrial enterprises above a designated size for the full year. Looking at the monthly growth rates of industrial value added, only January and February showed positive growth. The growth rates for all other months were negative. From May to September, the rates stabilized, but from October onwards, there was a significant decline, with December reaching the lowest level of the year.

According to incomplete statistics, the production of traditional electric light source products such as incandescent lamps and fluorescent lamps has declined. The cumulative national production of electric light sources fell year-on-year by more than 15%. Among them, the cumulative production of incandescent light bulbs fell nearly 16% year-on-year; the cumulative production of fluorescent lamps fell by more than 10% year-on-year. Production of luminaires and lighting devices remained basically flat compared to last year.

III. Total export volume remains high, with a clear trend of decreased quantity and increased price

In 2022, despite multiple adverse factors, the lighting industry maintained a stable export scale, further highlighting China's important position in the global lighting industry and its clear advantages in the supply chain. In 2022, China's total lighting industry exports amounted to USD 62.7 billion, a year-on-year (YoY) decrease of 4%. Among them, electric light sources and their related products accounted for 15% of the total lighting product exports, an increase of nearly one percentage point compared to the previous year; luminaires and their related products accounted for approximately 74% of the total lighting product exports, a decrease of one percentage point compared to the previous year; other non-major lighting products accounted for approximately 11% of the total lighting product exports.

Looking at it by quarter, the lighting industry's export value in Q1 2022 remained basically stable, but this quarter also saw the first negative growth since the outbreak of the pandemic; the export value rebounded in Q2. In Q3 and Q4, due to factors such as the intensification of the Russia-Ukraine conflict, accelerated tightening of monetary policy in Europe and the US, and frequent outbreaks of domestic epidemics causing significant impact on the terminal consumer market, the lighting industry's export value showed a downward trend. In Q4 2022, China's lighting product exports were approximately $16.3 billion, a year-on-year (YoY) decline of over 10%, marking the largest single-quarter drop since Q1 2020 across 11 quarters.

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By product category, the export value of light source products remained basically stable, while the export volume declined; for luminaire products, both export volume and export value narrowed; for other non-major lighting products, the export value increased slightly, while the export volume decreased slightly.

1. Electric light source and related products

2022年，我国电光源产品出口形势复杂，整体呈现量减价增的态势。电光源产品出口量有所下滑，出口额总额与上年基本持平，产品出口均价全线上涨。

Electric light source product export volume decline is significant. China's ordinary lighting electric light source product exports amount to approximately 8 billion units, a year-on-year decrease of 19%. Among them, LED tubes and light bulbs account for about 72% of the total export volume of ordinary lighting electric light sources, with exports of approximately 570 million units, a year-on-year decrease of 17%; traditional electric light source products such as incandescent lamps and fluorescent lamps exported approximately 230 million units, accounting for 28% of the total main electric light source exports, a year-on-year decrease of 24%.

Note: The image above includes only electric light sources for general lighting under 11 tariff headings, such as "Incandescent lamps, not elsewhere specified, power ≤200W, rated voltage >100V", "Other tungsten halogen lamps", "Compact fluorescent lamps with hot cathode", "Light-emitting diode (LED) bulbs", and "Light-emitting diode (LED) tubes".

From the perspective of electric light source product classification, HID lamps (sodium vapor lamps, mercury vapor lamps, other metal halide lamps) experienced the largest decline, with annual exports of approximately 300 million units, a year-on-year decrease of 42%. Second were ordinary fluorescent lamps for general lighting, with 2022 exports exceeding 400 million units, a year-on-year decrease of 24%. Looking at major light source export products by single HS code, the largest decline this year was in other tungsten halogen lamps, with exports exceeding 200 million units, a year-on-year decrease of 56%. Among LED light source products, the largest decline was in LED bulbs, with exports exceeding 5 billion units, a year-on-year decrease of over 15%.

The total export value of Electric light source products remained basically flat compared to the previous year. In 2022, China's total exports of Electric light source and its accessory products amounted to $9.08 billion, accounting for 14.5% of the total export value of all lighting products, with a Year-on-year (YoY) increase of 1.9%. Among them, LED light source product exports reached $5.89 billion, accounting for approximately 65% of the total export value of Electric light source and its accessory products, representing a Year-on-year (YoY) decrease of 1.6%; traditional Electric light source products such as Incandescent lamp and Fluorescent lamp had total exports of approximately $2.82 billion, accounting for about 31% of the total export value of Electric light source and its accessory products, with a Year-on-year (YoY) increase of nearly 10%. Export values for all major general-purpose lighting Electric light source products decreased in 2022, with declines ranging between 2% and 36%. Among these, the largest decline was seen in HID lamps, with exports of approximately $120 million, a Year-on-year (YoY) decrease of 36%; the largest increase was observed in UV tubes, IR bulbs, Arc lamps, etc., with total exports of approximately $560 million, a Year-on-year (YoY) increase of over 50%.

Electric light source product export average prices rose across the board. Affected by significant increases in upstream raw materials, logistics, energy and other costs, in 2022, except for a slight 2% decline in the average export price of discharge lamps, the average export prices of all types of electric light source products increased, with growth rates ranging from 9% to 101%. The average price increase for LED bulbs and tubes was close to 14.7%. The largest increase was seen in tungsten halogen lamp products, whose average export price doubled year-on-year.

2. Luminaire and related products

2022年，在国内外形势错综复杂，叠加去年高基数的影响下，灯具及其相关产品利用一体化、系统化和智能化所带来的货值提升，出口依旧维持了高位规模，但出口量、出口额、出口均价均有所下降。从中国照明出口产品结构变化情况中可以看出，灯具产品占比呈现逐年上升态势，占照明产品整体出口额比重从2018的68%至2022年的74%。灯具产品出口在未来相当一段时期内仍是照明整体出口的压舱石。

Export volumes of major luminaire products have declined. In 2022, export quantities of luminaire products and related products decreased, while outdoor luminaire products such as Christmas lights, searchlights, and spotlights increased. Searchlights and spotlights rose rapidly, with exports of approximately 40 million units, a year-on-year increase of about 47%; followed by Christmas lights, with exports of approximately 730 million sets, a year-on-year rise of 40.5%. Fixed luminaires, portable luminaires, and other luminaire products experienced certain declines. The most significant drop was in portable luminaires, with exports of approximately 200 million units, a year-on-year decrease of 19.5%; followed by fixed luminaires, with exports of approximately 1.31 billion units, a year-on-year decline of 1.7%.

The total export value of luminaire products decreased slightly. In 2022, China's total exports of luminaires and related products were approximately USD 46.4 billion, accounting for about 74% of the total exports of all lighting products, a year-on-year (YoY) decrease of about 6%. The ratio of export values between luminaires and related products to electric light sources and related products in China increased from 1.8:1 in 2012 to 5.1:1 in 2022. This reflects a significant change in the product structure of the lighting industry from one aspect.

Export values for all major luminaire categories declined in 2022, with decreases ranging from 1% to 30%. The most significant drop was observed in portable luminaires, with export value of approximately USD 4 billion, accounting for about 9% of total exports of luminaires and related products, representing a year-on-year (YoY) decline of 30%. Fixed luminaires followed, with export value of approximately USD 11.7 billion, accounting for about 25% of the total, and a YoY decrease of 10%. The fastest growth was seen in searchlights and spotlights, with export value of approximately USD 270 million, up 82.2% year-on-year. Christmas luminaires came next, with export value of approximately USD 1.73 billion, accounting for about 4% of the total, and a YoY increase of 20.4%.

Note: The image above includes all 18 tariff codes for [[Luminaire|Luminaria|Luminária|وحدة إضاءة|Светильник|Luminaire|Leuchte]] and related products

The average export price of major luminaire products has declined. In 2022, the average export prices for fixed luminaires, portable luminaires, Christmas luminaires, and other major luminaire products all declined, with decreases ranging between 1% and 15%. The products with the fastest decline were Christmas luminaires, down 14.3% year-on-year; followed by portable luminaires, down 13% year-on-year. Searchlights and spotlights, as well as other electrical lighting equipment and devices, saw an increase in their average prices, rising 24% and 11.8% year-on-year, respectively.