Industry growth and mergers and acquisitions to enhance the integration of LED industry heat wave

2015 LED industry to maintain high growth momentum. LED lighting products to enhance the efficiency of light, sales to maintain rapid growth. Downstream product prices and costs decreased, corporate profitability began to stabilize, the entire industry is in a period of rapid growth. In addition, in 2015 the upstream LED industry will set off a wave of mergers and acquisitions, with a number of LED chip and packaging companies in 2015 is expected to exit, the upstream market concentration further increased, leading enterprise has the advantage of technology and scale effect.

LED industry continued high growth

Thanks to the governments to ban incandescent lamp / disabled and a decline in prices of LED lighting products, LED lighting market is expected to grow rapidly in 2015, year-on-year growth rate reached 28.5%. China as the world's second largest LED lighting market in 2015 grew by more than 40%, is one of the fastest growing markets in the world. At the same time in the first half of 2014, China's physical channel LED penetration has reached 59%, electricity supplier channel LED sales doubled growth, these are the LED lighting market in China to lay a solid foundation for the outbreak. Two street market.

At the same time, in 2015 China's LED street lamp market size will reach 23 billion yuan, an increase of 56%, the market potential is huge. LED small screen as more than 60 inches of traditional large screen splicing product replacement for LED screen manufacturers to bring more than $20 billion market opportunities. With the penetration of the domestic market penetration, overseas markets will become the focus of the strength of Chinese manufacturers, product quality and overseas sales experience will be the first mover advantage.

In the context of the rapid development of the industry, the development of the LED industry presents three major changes, the mainland began to highlight the advantages of enterprises. First, the growth rate of the LED chip and the package of land owned enterprises in 2014 year-on-year revenue are better than their Taiwan counterparts, and the gap between the larger, thus the mainland and Taiwan LED enterprise strength has been reversed, get more share rise with geographical and cost advantages of mainland enterprises in the mainland can lighting market, which occupies the development space of Taiwan counterparts. Secondly, the mainland LED chip manufacturers worldwide influence is rising, 2015 is expected to add MOCVD equipment in about 74% of the share from land owned enterprises, expansion, leading chip companies total capacity accounted for more than 20% of the global market and the mainland LED chip industry concentration is also improved, in 2014 before the five chip manufacturers accounted for the total market share to reach more than 67%, up 3 percentage points compared to 2013, the industry oligopoly pattern formation. Finally, due to the low market concentration of LED packaging and application industry, the industry is highly competitive, so M & A integration will become one of the main ways to develop the industry leader.

Mergers and acquisitions help boost the growth of the LED industry

2014, the domestic LED chip industry to increase the intensity of integration, small businesses are gradually withdraw. Royal Dutch Philips Electronics Ltd announced on June 30, 2014, with the company's Lumileds LEDs components and Department of automotive lighting division to form a new company, the two enterprises in 2013 sales of $1 billion 900 million. On the same day, Taiwan China LED chip by leading EPISTAR canyuan photoelectric convertible merger, the latter has become a subsidiary of epistar. It is expected that this trend will continue in 2015, leading enterprises rely on technology, customer resources and production capacity and other advantages, is expected to win in the competition.

LED chip part of the scale effect, higher requirements for capital investment and technology development, small enterprises have become the object of mergers and acquisitions or exit the industry, since 2009, there are some well-known LED chip companies such as Dalian Road, Shanghai Blaupunkt, Fang Daguo beauty of exit in the fierce competition. Correspondingly, the LED chip enterprises will further increase the expansion efforts, according to relevant statistics, in 2015 the domestic MOCVD is expected to increase to 250 units, the main production is ranked in the leading enterprises expanding, the total will reach about 1500 units MOCVD. LED chip industry emphasizes the technical strength and scale effect, based on this, leading enterprises gradually erode competitors market share, is expected in 2015 is more conducive to the competitive situation of the larger LED chip companies. Although the chip prices still have a certain degree of decline, but with the emergence of market share, corporate equipment operating rate and product yield increased, leading enterprises are expected to profitability will gradually rebound from the bottom.

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