2015 is a very difficult year for most LED manufacturers. TrendForce's Green Energy Division's LEDinside Research Associate Yu Chao said that despite the rising demand for LED lighting and substantial replacement of traditional lighting applications, oversupply has caused the average LED unit price to decline by 30-40%. Manufacturers are facing losses, or even gradually qiut the market. Laptop Charger,Hp 45W Laptop Charger,Universal Laptop Charger,Laptop Ac To Dc Adapter Guang Er Zhong(Zhaoqing)Electronics Co., Ltd , https://www.cnadaptor.com
LEDinside estimates that the global high-brightness LED market output this year will reach 14.52 billion U.S. dollars, an annual increase of only 2%; in 2016, it will have only 14.95 billion U.S. dollars, an annual increase of 3%. Although the number of LED use continues to grow under the lighting demand, the increase in efficiency has led to a decrease in the number of LEDs used and the pressure of falling prices. Therefore, it is unlikely that the annual compound annual growth rate of the LED industry will be as high as 10% in the past five years. The above growth rate will slow the growth of the industry.
The outlook for 2016 LED industry trends is as follows:
Manufacturers continue to withdraw from the market, LED prices will slow down
This year, the backlight and lighting market demand is not as expected, the average price of LED chips and packages has dropped sharply, and it has also witnessed a dip-like decline in the second half of the year. Some specifications have even come to material cost levels, and manufacturers are facing a loss situation. Although LED will continue to face the pressure of continuous price cuts in the short term, the price has been close to the production cost of many manufacturers, and it is expected that as more and more manufacturers withdraw from the market, the space for future price decline will gradually shrink.
Chinese LED manufacturers launch overseas mergers and acquisitions and actively transform
Chu Chaochao pointed out that with stock market fundraising and government funding support, Chinese companies have already started overseas mergers and acquisitions, and they are targeting international LED patent makers and lighting brands, hoping to reinforce their patents and overseas sales channels. In addition, many LED manufacturers have also begun to seek transformation, through mergers and acquisitions to reach other areas, in order to get rid of the Red Sea market competition.
Tv LED backlight into flip-chip LED technology, penetration continues to rise
In the past, due to the yield and production costs, only a few manufacturers had adopted the Flip Chip LED technology as the main product. Since 2014, more and more Taiwanese and Korean manufacturers have invested in the development of flip chip LED technology, which has led to improvements in quality and cost, so benefits have gradually emerged. This year, Korean-based LED manufacturers have introduced flip-chip LED technology into the field of TV LED backlighting, and Korean TV brands have also been widely used as LED backlights. Each company actively promotes flip-chip LEDs and even smaller chip scale package LEDs in the field of television backlighting. LEDinside estimates that the penetration rate of flip-chip LED technology in TV LED backlighting will increase to over 50% in 2017.
Low prices, the penetration rate of replacement light source products will increase rapidly
Replacement light source products (LED bulb/lamp) specifications have been gradually standardized, plus the active promotion of various lighting brand manufacturers, the current retail price of LED bulbs in most countries has been close to the price of traditional energy-saving lamps. In 2016, various lighting manufacturers will continue to search for lower-cost solutions. In addition to LEDs, other components such as power supplies are also one of the price reduction areas of the overall system; in addition, manufacturers also hope to reduce retail prices and expand products. Sales increase market share. LEDinside expects that replacement light source products will be widely used within three years.
Special applications are the focus of profit, and invisible light applications are increasingly valued
White LED prices continue to kill, reducing profit space, so the new special applications will become the key to improving profits, including UV (UV) or IR (infrared) LED applications in visible light LED, LED manufacturers are the new favorite. Compared with applications such as LED lighting or backlighting, the invisible light LED market is limited in size, but due to the high technology, partial customization requirements, and close cooperation with system manufacturers, the barriers to entry are high, and the gross margin of products is also significantly better than that of white light. LED.
Taking UV LED as an example, the application in the field of exposure and curing is still the largest, but bactericidal applications are also receiving increasing attention. In particular, the UVC band attracts various manufacturers to actively invest in development due to high technical barriers and relatively few suppliers. .
The IR LED is based on remote control or security applications. However, the IR LED market is widely used, including various image/sense/position sensing, proximity switches, biometrics, and pulse oximetry. In the future, the application of handheld applications (such as information security, health management and its added value), the profitable space will be even longer, and the IR LED market will develop steadily.