Three market driven growth in the LED industry, which one do you like best?

LED has many advantages, such as energy saving, environmental protection, safety, long life, low power consumption, easy maintenance and so on. According to the characteristics of LED application products, LED application products can be divided into LED display products, LED lighting products, LED backlight products. As shown in the following figure:

China's LED industry began in the last century in 60s, due to the lack of application areas, the development of the industry is relatively slow, mainly in scientific research institutes or enterprises with the background of scientific research oriented, limited industrial capacity. Entered in twenty-first Century, along with the continuous innovation of LED technology as well as a variety of national support policies have been introduced, the rapid development of the domestic LED industry. According to statistics, from 2006 to 2014, the overall size of the LED industry grew from 35 billion 600 million yuan to $350 billion 700 million, an average annual compound growth rate of up to 33%. Expected from 2015 to 2017, will continue to maintain the growth rate of more than 30%, is expected by the year 2017, the market size will reach $748 billion 500 million.

Three market driven LED industry growth

First, the general lighting market.

Thanks to the governments of the incandescent lamp and lock up / disable LED lighting products prices continue to decline, LED lighting market is expected to grow rapidly in 2017, the size of the market accounted for $40 billion more than 50% in all the LED market. China as the world's second largest LED lighting market sales in 2016 will reach $7 billion, an increase of more than 30%, is one of the fastest growing markets in the world. At the same time in the first half of 2016, China's physical channel LED penetration has exceeded 60%, electricity supplier channel LED sales doubled growth, these are the LED lighting market in China to lay a solid foundation for the outbreak.

With the improvement of the LED luminous efficiency and production technology continues to mature, LED light source has been widely used in general lighting, signal lamp, backlight, display and other fields, and the formation of a hundred billion market size. From 2010 to 2015, due to the rapid growth of mobile phones, tablet PCs and other consumer electronics as well as in the field of TV backlight LED alternative to CCFL, LED backlight applications accounted for has remained at around 50% level. At the same time, under the support of government support and the decline in LED prices, LED lighting has grown significantly, in 2014 LED lighting has been more than LED backlight has become the largest market for LED applications.

Two street market.

Due to the control of the international giants, Chinese enterprises are more difficult to enter the LED street market overseas, so the domestic street market has become the focus of contention for major Chinese manufacturers. It is expected that in 2016 China's LED street lamp market size will reach 30 billion yuan, an increase of more than 50%%, the market potential. LED and EMC with high quality products will become the main competitors in this market. LED street lamps to become a major European and American street lamps stock market implementation of energy-saving policies an important part. For example, the United States a total of over 600 city has begun or planned installation of LED street, London plans to 2016 will be 52000 of the city street lamp in 35000 to replace the LED lights, the number of Canada and a number of emerging market countries including India, Russia, Southeast Asia, also introduced the LED outdoor lighting related policies, thus LED street reconstruction has become a trend of globalization.

Three LED small screen market.

LED small screen as more than 60 inches of traditional large screen splicing product replacement for LED screen manufacturers to bring more than $25 billion market opportunities. With the penetration of the domestic market penetration, Founder Securities believes that the overseas market will become the focus of the strength of Chinese manufacturers, product quality and overseas sales experience will be the first mover advantage.

Due to the current LED small spacing products in terms of price is only 60 inches above the traditional stitching products dominate, so LED small screen market is mainly concentrated in the field of large screen splicing. In 2015 the domestic 60 inch and above screen market size of about 4 billion 500 million yuan, if the Shanghai market demand, Founder Securities expects the global 60 inches and above the screen size of the potential market of more than 25 billion yuan, so instead of a huge market space. As the LED small screen in our country started earlier and a higher degree of user acceptance, the domestic market is growing faster than the overseas market. With more LED manufacturers have joined, expected future domestic LED market will tend to accelerate small spacing screen saturation, so Founder Securities that the overseas market will become the focus of competition for Chinese enterprises, and products of good quality and have experience in overseas sales companies will gain first mover advantage.

In the context of the LED general lighting market, LED street lamp market, LED small screen market three rapid development of the market, the LED industry will usher in rapid development.

Favorable and unfavorable factors affecting the development of LED industry

1, the factors affecting the development of LED industry

(1) strong support of national policies

LED industry with its characteristics of high technology and energy saving and environmental protection is a high-tech industry, focusing on the development of our country, the State Council under the NDRC, the Ministry of finance, Ministry, the Ministry of housing and other departments of the policy support and financial support of many local governments, such as the Ministry of housing in 2011 released "12th Five-Year" city of green lighting plan ", 2013, jointly issued by the national development and Reform Commission, Ministry of science and technology and other six ministries" semiconductor lighting industry planning "etc.. The country's strong support to the development of the industry provides a good opportunity for development and the environment, the development of the industry has a greater role in promoting.