Six major development trends in the LED packaging market in 2017
Published Time:
2021-08-03
At this stage of development, capital, technology, and scale have become important factors in the LED industry. Currently, the scale of China's packaging industry is still expanding.
At this stage of development, capital, technology, and scale have become important factors in the LED industry's growth. Currently, the scale of China's packaging industry continues to expand.
According to the latest research data, in 2016, the size of China's LED packaging market grew from 6.44 billion RMB in 2015 to 7.37 billion RMB, a year-on-year increase of 14%. In 2017, driven by the recovery of the LED application market, especially the LED lighting market, and the strong demand for small-pitch displays, China's LED packaging market is expected to reach 87 billion RMB, a year-on-year increase of 16%.
Six major development trends in the LED packaging market in 2017 are worth noting.
1. Accelerated development of Chinese LED manufacturers and continued increase in domestic usage rate
According to LEDinside's analysis, in 2016, the domestic product usage rate in China's LED packaging market reached 67%. Nichia Corporation remains the main supplier in China's LED packaging market, ranking first among the top 10 manufacturers. In addition to Nichia, there are 5 other international companies. Of course, Chinese manufacturers are not to be outdone. MLS is developing rapidly, surpassing Lumileds (a Dutch LED manufacturer) to rank second. NationStar and Honglitronic have also improved their rankings.
2. Steady growth of China's LED lighting market
The size of China's LED lighting market reached 25.9 billion RMB, lower than expected. The main reason is that global demand for LED lighting has not increased significantly, leading to an overall decline in exports of Chinese LED lights.
However, due to stable domestic market demand, China's LED lighting market grew by 9% year-on-year in 2016. LEDinside predicts that the size of China's LED lighting market will grow to 28 billion RMB in 2017 and reach 36.4 billion RMB by 2020, with a compound annual growth rate of approximately 9% from 2015 to 2020.
3. International manufacturers outsourcing many OEM orders to Chinese manufacturers
Due to the dominance of low-power LED lights in the LED lighting market and the high capacity utilization rate of China's Tier 1 manufacturers, many international brand manufacturers (Lumileds, Osram, CREE, Samsung, LG Innotek, etc.) are gradually concentrating their OEM (original equipment manufacturing) orders in China.
4. Growing demand for small-pitch LED display market stimulates manufacturer expansion
Due to the continued growth in demand for small-pitch LED displays, LEDinside predicts that the size of China's LED display market will reach 15.8 billion RMB by 2020. In the early days, Everlight Electronics held a leading position in the small-pitch LED display market. Today, more and more Chinese manufacturers are entering this field, including NationStar, MLS, and Kinglight, which has also stimulated manufacturers to expand into this area.
5. Chinese companies' adoption of MOCVD technology further reduces LED manufacturing costs
MOCVD equipment manufacturing technology was once in the hands of European and American companies. Veeco (a US instrument company) mainly produces EPIK700 MOCVD equipment with larger crystal furnaces. Based on the K465i MOCVD launched by the company in 2010, the EPIK700 MOCVD has the most reaction chambers.
The market share of Chinese MOCVD equipment suppliers such as AMEC and Topecsh is also gradually increasing, although it only accounted for 11% of the market share in 2016.
6. Year-on-year increase in demand for LED filament market
In recent years, due to the popularity of LED filaments in Europe, North America, and Australia, more and more manufacturers have entered this field, and the market size will show faster growth. In 2016, the global demand for LED filaments was 150 million units. LEDinside estimates that the global demand for LED filaments will reach 600 million units by 2018.
Currently, LED lighting technology is developing rapidly, the speed of industrial integration is significantly accelerating, and the industry concentration is gradually increasing. The development of enterprises is clearly polarized. On the one hand, large enterprises or enterprises with core competitiveness are achieving rapid development and further gathering towards industry giants; on the other hand, small enterprises are facing thin profits and difficult survival under the dual pressure of technology and scale, with occasional shutdowns, mergers, and transfers. The global LED competitive landscape is gradually changing.
Future reshuffling of the LED industry is inevitable, but each reshuffle will be another sublimation of the LED industry. Ultimately, some leading enterprises with core technologies, more independent intellectual property rights, well-known brands, strong competitiveness, and reasonable industrial layout will be retained.
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