Changes in the pattern of LED industry to accelerate the transfer of packaging capacity to China

In recent years, with the increasing permeability of LED, the global LED industry growth is gradually slowing down, while in the domestic market, LED chip manufacturers market share has more than 70% market share, the global packaging capacity is also to accelerate the transfer of Chinese, is expected in 2017, packaging production capacity will still continue to maintain growth.

LED industry regional pattern changes

After a few years of rapid growth, the global LED industry is gradually entering the plateau period, the growth rate is slowing down. Among them, the market share of Chinese manufacturers continue to rise, is playing an increasingly important role.

According to LEDinside statistics show that in 2016 the scale of the upstream LED chip field, Chinese market reached 13 billion 900 million yuan, year-on-year growth of 9%, the domestic chip rate rose to 76%, the top ten manufacturers market share rose to 77%; while in the middle of 2016 package, the market scale reached 58 billion 900 million yuan, year-on-year growth of 6%, the domestic rate of rise to 67%, the top ten manufacturers market share rose to 43%.

LEDinside analyst Yu Bin said that the current technical gap between the two sides of the LED companies are shrinking, mainland manufacturers in terms of price advantage is obvious. From the current point of view, the expansion of the manufacturers are mainly concentrated in the mainland, which predicts that the future will continue to improve the localization rate of LED.

In addition to the upstream LED chip links in the LED packaging sector, the industry is also entering a period of mild development. Industry forecasts, from 2015 to 2020 compound growth rate of only about 6%, the growth rate is far less than in previous years.

Although the industry growth rate slowed down, but the industry is also changing the pattern of the region, the global packaging capacity is accelerating transfer to china". Yu Bin said that, like some international manufacturers, such as PHILPS, Samsung, etc., are increasing production capacity in China OEM factory.

Due to cost pressures, many domestic LED companies are from the Pearl River Delta to other areas, such as some other MLS manufacturers began to try to Jiangxi, Jiangsu transfer plant. In addition, due to the gradual change in the industrial structure, industry giants have now, some small and medium enterprises in transition signs of other industries have begun to show.

Another research firm DIGITIMES recently also pointed out that, in view of the large size of the LED display and other LED products demand is growing rapidly, in 2017 China's LED packaging production capacity will continue to grow. In addition, it is expected that by 2017, China's LED epitaxial wafer and chip manufacturers will account for more than 50% of global production capacity.

New technology and new applications to promote the growth of the industry

LEDinside Research Associate in storage - that, in 2017, the LED market is still competitive, manufacturers will accelerate the transfer to small distance display, infrared and ultraviolet LED and other niche market to profit, estimated value of the global LED market will reach $15 billion 400 million in 2017, the annual growth of 4%.

"Small pitch LED display market has become a a hotly contested spot. "Chu Chao said in the small pitch LED display driven LED number is growing exponentially, attracting many China LED packaging factory to expand production capacity to attack the market pie. In addition, the infrared LED in security, iris recognition and VR applications, such as unlimited business opportunities.

Another important thing in 2017 is the micro LED products are expected to come out. In the expert opinion, the micro LED is a chance to replace the next generation of OLED panel display technology, is currently attracting many brands to invest in R & D. Although the micro LED distance to replace the TFT-LCD (liquid crystal) and OLED display is still quite remote, but some manufacturers have plans to launch related applications, LEDinside estimated 2017 will continue to have a micro LED products.

According to an assistant professor at the Zhongshan University - Carnegie Mellon University Joint Institute of Engineering Liu Zhaojun, micro LED is considered ideal for the next generation of display technology, its application will include large and medium size outdoor / indoor large screen, the desktop computer / notebook computer display, mobile phone / digital camera / portable projector screen, smart watches, bracelets and other wearable products.

In addition, like industrial lighting, car LED, LED filament lamp niche market is also widely sought after. LEDinside analyst Wang Juxian believes that in 2016 the global industrial lighting market size of $2 billion 932 million, after a few years to more than 15% growth rate, is expected in 2020, the market size will reach $5 billion 204 million.

At present, the trend of the vehicle with the most explosive LED, car lights, taillights and other ways of using LED more and more, due to the small size of the LED itself, strong brightness, enhance the overall design of the car aesthetic. Wang Zhongwei, deputy director of the center of a hundred million light vehicles.

Market prices or small rise

Due to the rising cost of raw materials upstream, LED industry into the overall price wave. Last May, Taiwan opened the first wave of chip crystal electric wave of price hikes, then, Sanan optoelectronics, HC semitek prices follow. Currently, the wave of price increases have been transmitted to the terminal consumer applications. Industry forecasts, in 2017 the LED industry will maintain the current situation, the price even further rise in space.

LEDinside brand director Wang Fei said that since 2016, the LED industry has appeared in the five round of price hikes, rising prices the main factor is the supply of raw materials prices, the rapid growth of small pitch LED display and the demand side in this segment.

In his opinion, two years ago, the domestic LED chip prices have fallen sharply, so the price is actually 2016 plummeted after bottoming rebound. But on the other hand, due to the price of some of the LED product supply shortage phenomenon, not a comprehensive reversal of the market, but only structural shortage.

Due to the current price increases