LED industry pattern changes, packaging capacity to accelerate the transfer 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 China, is expected in 2017, packaging production capacity will still continue to maintain growth.

Regional pattern change of LED industry

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

According to LEDinside statistics show that in 2016 the scale of the upstream LED chip field, China 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 technology gap between the two sides of the LED enterprises is shrinking, and mainland manufacturers have obvious advantages in cost performance. From the current point of view, the expansion of manufacturers mainly concentrated in the mainland, which predicts that the future rate of LED localization will continue to improve.

In addition to upstream LED chip link, in the LED packaging link, the industry is also entering a smooth development phase. 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 significantly, but the regional pattern of industry is also changing, global packaging capacity is accelerating to China."". Yu Bin said, such as some international giants, such as PHILPS, Samsung and so on, is increasing the foundry capacity in china.

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 pattern of industry, industry giants have now, some small and medium enterprises in transition, signs of other industries have begun to appear.

Another research institution DIGITIMES recently pointed out that, in view of the large size of LED display and other LED products demand growth rapidly, in 2017, China LED packaging enterprise capacity will continue to grow. In addition, by 2017, China's LED epitaxial wafers and chip manufacturers will account for more than 50% of the world's total output.

New technology and new application promote industry growth

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 Chinese LED packaging factory to expand production capacity to attack the market pie. In addition, the infrared LED in security, iris recognition and VR applications and other fields unlimited business opportunities.

Another important thing in 2017 is that micro LED products are expected to come out. In expert opinion, micro LED is a chance to replace the OLED panel next generation display technology, has attracted many brand manufacturers into research and development. Although the current micro LED distance to replace TFT-LCD (liquid crystal) and OLED display is still quite far away, but some manufacturers have plans to launch related applications, LEDinside estimates in 2017, there will be a micro LED products coming out.

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, niche markets such as industrial lighting, automotive LED and LED filament lamps have also been widely sought after. LEDinside analyst Wang Juxian believes that in 2016 the global industrial lighting market size of 2 billion 932 million U. s.dollars, and in the next few years to more than 15% growth rate, is expected by 2020, the market size will reach 5 billion 204 million U. s.dollars.

"At present, the trend of vehicle LED is the most explosive, and more and more cars are used to choose lamps and taillights. Because of the small size and strong brightness of LED itself, the design sense of the whole car has been improved," said LED." Million light car center deputy director Wang Zhongwei said.

Market prices rose slightly

As the upstream raw material costs rise, the LED industry has entered a wave of overall price increases. Last May, Taiwan opened the first wave of chip crystal electric wave of price hikes, then, Sanan optoelectronics, HC semitek prices follow. At present, the wave of price increases has been transmitted to the end consumer applications. Industry forecasts, in 2017, LED industry will maintain the current situation, prices and even further slight 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, because the price increases, some of the supply of LED products shortage phenomenon, not a comprehensive reversal of the market, but structural shortage.

As the current price increases mainly due to cost factors, the growth of demand for the benefit of enterprises is not much, so up