In 2014, LED industry there is a consensus of the most popular is the "open this year is the first year the LED lighting!" This sentence. According to data of week industry research center, the global lighting market size of about traditional 800 billion yuan, while in 2013 only LED lighting penetration rate of nearly 20%, the next three years, LED penetration will increase to 50 percent by 2016, LED lighting market size or reach 500 billion yuan. In such a great situation, we recently have observed a number of LED shareholders of listed companies frequently cash holdings. First, LED lighting high growth market size does not mean reduced competition within the industry. On the contrary, LED lighting market is doomed from the outset, is a Red Sea market, competition within the industry will be even more intense. LED industry after years of rapid growth and years of industry winter, has entered a more mature stage of development. In the current business climate, it is hard like before, the situation appears each other to heaven, but the strong hegemony, the weak out of the situation. In fact, in such a highly competitive industry, the industry's profit margins will be difficult to open new normal "income Boli," will LED business. Secondly, LED enterprises face into the traditional lighting companies, there is no competitive advantage. LED lighting products manufacturing sector, after years of development, were all very standardized, process-oriented, traditional enterprises to enter the LED lighting has become very low threshold. The traditional lighting companies to control the sales channels, with a strong competitive advantage. Finally, LED lighting to replace conventional lighting in speed, the market is saturated speed or too fast. Traditional lighting market itself is a slow-growing market, LED lighting on the traditional lighting market is only a substitute role, contribute little incremental space. After the outbreak of LED lighting, or three to five years to complete the entire replacement process, coupled with the long life of the LED light source characteristics of the stock market in the future to replace the lighting market space but smaller, LED lighting companies, or will face shrinking market situation.