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Analysis On The Market Pattern Of The Latest LED Industry
Apr 14, 2017

       2017, LED display industry ushered in the development of a turnaround, many large enterprises revenue considerable, and even received a substantial increase. With the continuous improvement of LED penetration, the global LED industry growth is gradually slowing down, while the LED upstream chip and midstream packaging business market share has greatly improved. Recently, many manufacturers to accelerate expansion, access to a huge profit, affected by the industry, in short supply part of the LED business earnings will rise again, and this revenue is behind the story.

    Multi-push to promote market demand

    Throughout the LED industry situation, starting from the first half of 2016, due to changes in industry and raw material prices, LED chips, packaging, lighting launched a number of price increases, LED industry supply and demand pattern changes.

    Today, LED industry downstream LED lighting, LED display than the downstream applications accounted for more than 2 / 3. 2017 global LED lighting market penetration is expected to exceed 36%, growth rate of more than 20%, while the small gap LED display market growth rate over 50%, the overall continued supply and demand booming.

    Looking ahead 2017, LED market competition, manufacturers accelerate to small-pitch display, infrared and UV LED niche market in order to profit, estimated 2017 global LED market output value will reach 15.4 billion US dollars, 4% growth. Small-pitch LED display market will become a multi-LED screen enterprises in the battleground, in addition, many industry segments and the extension of the market will be due to industry market demand and widely developed.

    Price tide continues to spread

    In the hearts of the industry, LED industry price tide has long been surprised. From the past, low-cost competition to the current price of raw materials Daobao LED prices, the price competition between enterprises has undergone a substantial evolution, who can be the lowest price who will be able to get more profits, and now Low-priced products have been criticized, some high prices, good quality products are gradually accepted by users, prices led the entire LED industry to enhance the concept of consumption and rational adjustment of corporate price changes.

    Price is not short-term, from the current situation, LED industry chain linkage prices, it will be a protracted war. What will the price tide will last long, how high the price increase, the enterprise can not decide. The only thing that can be determined is that as the industry product prices return to normal levels, corporate profits will also be some changes, after the low-cost sales led to the industry's gross margin decline will be eased. At the same time, with the large expansion of market demand, business prices continue to expand will undoubtedly bring greater profit margins.

    In fact, the LED industry price tide in addition to changes in their own industry, to a certain extent, with the national policy, economic situation and other aspects are also related, whether upstream LED chip supply and demand tension, LED packaging business expansion or downstream LED display Screen, lighting products prices tend to be reasonable, the entire LED industry chain will be affected by many factors.

    LED area pattern change

    With a series of changes, the global LED industry is gradually entering the "plateau", the growth rate slowed down. Among them, the Chinese manufacturers market share continues to improve, is playing an increasingly important role.

    Data show that the upstream LED chip field, the Chinese market in 2016 scale of 13.9 billion yuan, up 9%, chip domestic rate rose to 76%, the top ten manufacturers market share rose to 77%; in the middle of the field of packaging, 2016 The annual market size reached 58.9 billion yuan, up 6% year on year, domestic rate rose to 67%, the top ten manufacturers market share rose to 43%.

    Visible, the current cross-strait LED technology gap is shrinking, the mainland manufacturers in the price advantage on the obvious. The expansion of the manufacturers are mainly concentrated in the mainland, which predicted that the future localization rate of LED will continue to improve.

    In addition to the upstream LED chip links, in the LED packaging links, the industry is also entering a modest development period. The industry forecast, 2015 to 2020 compound growth rate of only about 6%, far worse than in previous years.

    For cost pressures, many domestic LED companies are also being transferred from the Pearl River Delta to other regions. In addition, as the industry pattern gradually clear, the industry giants have been, some small and medium enterprises in other sectors of the signs of transformation began to appear. Therefore, the enterprise behind a large number of revenue is the evolution of the entire Chinese LED industry.

    LED chip short-term supply and demand tension

    Recently, LED chips in short supply trend is obvious. From the supply point of view, 2017 effective LED chip production capacity of 83.28 million, as of 2016 effective production capacity of about 1083 units, the corresponding capacity of about 63 million / year. Since the beginning of 2016, LED chip overall supply demand to maintain a weak balance, some product structural capacity tension. By 2017, due to raw material prices, the entire upstream LED chip in short supply, leading to leading enterprises have price increases, chip market once again usher in expansion. It is understood that LED chip leading enterprises this year, an increase of about 345 machines, the end of this year the global effective production capacity reached 83.28 million / year.

    From the demand point of view, it is estimated 2017 on the demand for LED epitaxial board 92.35 million. Of which the demand for lighting chip 47.04 million increase of 20%; outdoor full-color display demand 26.02 million increase of 5%; indoor small demand for 102 million increase 50%; mobile phone backlight demand 1.39 million; Tablet PC backlight demand 44 million ; Computer and television backlight demand 699 million; automotive lighting demand 1.06 million; other about 839 million. In summary, the total demand area of LED chips in 2017 is estimated at 92.35 million, an increase of about 12.5%.

    LED package expansion revenue

    At present, the global LED packaging output value of 15.3 billion US dollars growth rate to 5%, Europe, the United States, Japan and other foreign manufacturers dominate the high-end market, China's 2015 share of 21% of output value, ranked first in the world, The next 2 to 3 years to further enhance. At the same time LED packaging industry concentration continues to improve, the domestic leading enterprises to enhance the profitability of packaging enterprises.

    From the two LED packaging giant business revenue can be seen, LED packaging and assembly products accounted for the vast majority of corporate revenue, and the two companies have carried out a large-scale expansion.

    Promote technology upgrades and application development

    Business income steadily rising, the industry situation will continue to change the impact of the LED industry, the current situation, the market demand with each passing day, LED technology R & D strength will continue to improve, and jointly promote the industry technological innovation, to create a more rich Technical content of the product.

    This year, many LED companies in innovation has been a huge achievement.

    In addition, in addition to promoting industry technology upgrades, many new applications will gradually develop, such as automotive LED, VR / AR and other markets are also widely sought after. At present, the automotive LED market outbreak, car lights, taillights and other places to choose LED more and more; and VR / AR equipped with LED display can also achieve a more scientific sense of the display. Therefore, the industry development situation for the better, corporate profit growth, the entire LED industry, technology upgrades, applications will also be a certain expansion.


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