The latest "2017 China LED Chip and Packaging Industry Market Report" by TrendForce Consulting LED Research Center shows that the size of China's LED packaging market in 2016 was 58.9 billion yuan, a year-on-year growth of 6%, which was slightly higher than expected. In 2016, LED prices remained stable, and some product prices even increased. Driven by the small pitch, automotive and lighting markets, the industry still maintained a growth trend. Looking forward to 2020, the scale of China's LED packaging market will be RMB 73 billion.
According to the market development of China's chip and packaging industry, sort out the following six major trends
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Trend 1: Chinese manufacturers continue to rise, domestic production rate continues to increase
data show that in 2016 China’s LED packaging market, the domestic production rate has risen to 67%. However, international manufacturers headed by Nichia are still the main suppliers in the Chinese packaging market. Among the top ten manufacturers, international manufacturers occupy 5 seats. Nichia Chemical is at the top of the list, but the rise of Chinese manufacturers is obvious, which represents the rapid development of the manufacturer Mulinsen. In 2016, it surpassed Lumileds to rank second, and NationStar Optoelectronics and Hongli Zhihui ranked further.
Trend 2: China's lighting LED market develops steadily
2 The scale of China's lighting LED market in 2016 reached 25.9 billion yuan, which was lower than market expectations. The main reason was that the growth rate of international LED lighting demand was not obvious, which led to a decline in China's total LED lighting exports. However, due to the promotion of domestic demand in China and the stability of prices, the lighting LED market still maintained a growth of 9% in 2016. It is expected that the lighting LED market will reach 28 billion yuan in 2017 and 36.4 billion yuan in 2020, 2015-2020 The compound growth rate is 9%.
Trend 3: International manufacturers release lighting LED foundry orders
As low- and medium-power LEDs are sweeping the LED lighting market, more and more international brand manufacturers, including Lumileds, OSRAM, CREE, Samsung, LG The capacity utilization rate remains high-end. The top five Chinese lighting LED manufacturers are Mulinsen, Hongli Optoelectronics, Tiandian Optoelectronics, Ruifeng Optoelectronics, Zhaochi Energy Saving, etc. in order.
Trend 4: Small-pitch display drives the demand for capacity expansion of various factories
LEDinside analysis Due to the rise of small-pitch displays, display LEDs still maintain a growth trend. It is expected that the display LED market will reach 15.8 billion yuan in 2020. In the field of small-pitch display LED packaging, Everlight was dominated in the early days. At present, many Chinese manufacturers have entered this field, including NationStar Optoelectronics, Mulinsen, and Jingtai Optoelectronics, which have also driven the demand for capacity expansion of various factories.
At the same time, the demand for quaternary LED production capacity has also increased. According to LEDinside's analysis and statistics, Sanan Optoelectronics, Wuhan Huacan, Qianzhao Optoelectronics and Epistar all have quaternary LED capacity expansion needs in 2017.
Trend 5: The gradual rise of China-made MOCVD will drive the cost of Chinese manufacturers to further decline
According to data, the total number of MOCVD machines shipped in 2016 was approximately 136 units. Most of Veeco's machines are EPIK700, with a large cavity, so if they are converted to K465i machines, the number of equipment machines after conversion will rank first. China's MOCVD equipment vendors include AMEC, Topecsh and other companies gradually rising, although the total market share in 2016 was only 11%. However, after verification on the client in 2016, 2017 will begin to enter the supply chain of Chinese LED chip manufacturers.
In the past, MOCVD equipment was controlled by European and American companies, but as China-made MOCVD equipment begins to pass the verification of Chinese LED chip manufacturers, it will be introduced to some LED chip manufacturers in 2017. Since the equipment is relatively cheap, it is expected to further lower costs.
Trend 6: Market demand for filament bulbs and filament LEDs is expanding rapidly
In the past two years, due to the popularity of LED filament lamps in the European, North American, and Australian markets, more and more manufacturers have entered the field of filament lamps, and the market scale has also shown rapid growth. In 2016, the global LED filament bulb market demand was 150 million. It is expected that LED filament lamps will continue to maintain rapid growth in 2018, and the global market demand is expected to reach 600 million. In terms of packaging product supply, the main filament LED suppliers include Yuanlei Technology, Mulinsen, Ruifeng Optoelectronics and Hangke Optoelectronics.
