LED penetration continued to improve, the gradual rise of mainland manufacturers

Rate continues to improve, small spacing demand: according to LEDindside estimates, in 2015 the global LED lighting penetration rate reached 30%, and maintain an upward trend, is expected to reach a penetration rate of 40% by 2017. From the market point of view, in 2015 the global LED lighting market reached $24 billion 300 million, an increase of 17.53%. The global LED lighting market is expected to reach $30 billion 300 million by 2017, 16-17 CAGR of about 11.61%. Strong demand for LED small spacing market to some extent alleviate the LED relation between supply and demand, the general point spacing is smaller, the number of units used in square beads is more, so the development of LED small spacing market increased by LED lamp demand.

International companies declined, mainland companies rise: from the LED industry in the global distribution in recent years as the price trend of lighting comes, China LED manufacturers gradually rise, the market share increased from 5% in 2009 to 25% in 2015, growth is very rapid. The market share of Japanese and Korean manufacturers gradually declined, the market share of Japanese manufacturers decreased from 33% in 2009 to about $24% in 2015, while the market share of Korean firms fell from 19% in 2009 to $15% in the year of 2015. PHILPS and OSRAM are gradually LED lighting business sale or stripping, Samsung Electronics will also be downgraded to LED business department working group, LG also adjust the LED division, into the LED chip and package is liquidating its cause. From the LED lighting market share, Chinese LED manufacturers market share gradually rising, our market share from 3.6% to 14 years 15 years 4.1%, honglitronic in 15 years to enter the top ten, market share reached 2.95%.

Investment strategy: from the supply side, the international market is gradually declining, the influence of the mainland manufacturers are gradually increasing, the exit or compression of international manufacturers will provide a better competitive environment for the remaining competitors. From the demand side, LED lighting penetration is still in the rising stage, while the rapid growth of small spacing market driven demand for LED. Outlook 2016~2020, the overall LED market demand continues to grow, big rival, the industry logic will benefit the relevant enterprises.

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