LED manufacturers where to find profit? Niche market is the key

If the LED manufacturers is a piece to Han group, then they should be the main song "price war is slowly killing you". In the past 3 years, the LEDforum meeting, the price war fighting has been one of the topics LED manufacturers continue to discuss. Fierce price war is the point of pain, the past few years in the LED market and, according to the observation of Lumileds Asia Marketing Director Zhou Xuejun, price war fighting in 2016 may be more tragic.

See here, you may want to ask: so LED manufacturers over? Far worse, because life will always find his way out, LED manufacturers are no exception! Continue to focus on the development of the manufacturers more confidence, such as crystal LED or CSP LED breakthrough, so that the cost of decline, are showing the determination of LED vendors to stick. At the same time, LED vendors are also in IR LED and UV LED niche market resources, hoping to be able to see a glimmer of light in the era of lighting and backlight.

Before we do on 2015 LEDforum each speaker is wonderful to share, should first ask why LED manufacturers to watch the price war continued diluted profit down prices? Is the price war in the fight, those who have the confidence to be able to hold up to the end of the manufacturers can really benefit?

LED industry is still in the stage of traditional lighting fixture

Lumileds Asia regional marketing director Zhou Xuejun believes that the low market penetration of LED lighting on behalf of LED lighting as well as great market potential. He pointed out that the LED industry can be divided into three stages, and is still in the first stage: the replacement of traditional lamps. The first stage is defined as the replacement of the traditional lamp holder and bulb, which is now expected to peak in the next three years.

The second stage is the type of innovation and connection function, that is, the shape of the bulb and the design of the interaction is connected to the connection will be substantially changed. And the third stage, LED lamps or light sources will be integrated into the building materials. According to Zhou Xuejun Lumileds, director of regional markets in Asia, shared on LEDforum, lighting system integration will become more important in the future.

In theory, LED manufacturers in the lighting industry should have a good development. But according to Zhou Xuejun and CREE Asia Pacific market general manager Chen Fulong, deputy general manager of EPISTAR R & D center Xie Mingxun description, LED lamps profits have dropped steeply, and continues to decline. One of the benefits of LED's price decline is to accelerate the pace of consumer use of LED lamps, although at the same time the profits of manufacturers have been sacrificed. In this case, this allows LED manufacturers to lower the cost of LED chips and emerging niche market development.

2016, CSP LED will enter the TV Backlight Market

As LED vendors are committed to reducing costs, the role of CSP LED in the LED industry is becoming increasingly important. CSP LED is the LED manufacturer is committed to reducing the cost of manufacturing the crystallization of wisdom, but the smaller the same luminous flux of the required raw materials are less. Zhou Xuejun pointed out that CSP LED reduces the cost of traditional LED 40%.

Lumileds Asia Marketing Director Zhou Xuejun and EPISTAR R & D Center Deputy General Manager Xie Mingxun pointed out that the CSP LED will be applied to the LED TV backlight in 2016. There are industry rumors LG Display and Samsung for the use of CSP LED instead of the traditional LED, as LCD TV backlight applications interested. CSP LED is relatively compact, high brightness and the number of LED used in the TV backlight is also less. LG Display and Samsung decided to use CSP LED as a TV backlight, the market penetration of CSP LED will be greatly improved.

Two LED experts agree that the future of CSP LED will also be used in lighting fixtures, but Zhou Xuejun and Xie Mingxun are not looking for the same time. Zhou Xuejun estimates, CSP LED will begin in 2016 to apply lighting fixtures, while Xie Mingxun advocated CSP LED lighting applications should be started in 2017.

Nevertheless, most of the experts on the trend of sharing on the LEDforum LED chips are considered to account for up to of the cost of the lamp to only $18% to $30%. Chen Fulong, general manager of CREE Asia Pacific Marketing Department, believes that the LED chip is about 25% of the finished product. This data shows the magnitude of the cost of LED chip can be down, but also forced manufacturers to find other lucrative niche market.

Intelligent lighting is a new star in the industry

Seeing the light source camp contraction of water, various manufacturers have sought to improve the profitability of alternative markets. Internet of things (IoT) through the wisdom of the success of the technology to attract the attention of LED manufacturers, STMicroelectronics and GE Lighting, for example, the two speakers are aware of the potential of this market. STMicroelectronics Greater China and South Asia, industry, power and discrete components and application of marketing director Lu Dawei pointed out, the company noted that the rise of smart lighting products, as well as their lighting consciousness, make energy efficiency and reduce energy waste is important, it is used to drive the IC lamp of wisdom is very important.

GE Lighting Asia Pacific Product Manager - interior lighting, said Huang Yuting, GE Lighting successful development of indoor LED lighting positioning system, focusing on the application of the retail market. Huang Yuting on the LEDforum introduced intelligent lighting systems and product details.

Development of UV LED

Focus on higher profits and greater revenue figures, many LED vendors are eyeing the UV and IR LED market. IR LED has a complete and rich product line EPISTAR, in the backlight market is becoming saturated and profit by lighting