The LED market will aggravate the imminent outbreak of close combat

The LED market has opened the billion mark, a bloody siege is inevitable LED. LED industry as a new sunrise industry, not only has the economic value of hundreds of billions of dollars, but also has enormous social value of energy saving and environmental protection.

LED industry chain includes: upstream equipment manufacturing, raw materials, the middle reaches of the chip manufacturing and packaging, until the downstream LED applications, namely, chip manufacturing equipment, chip manufacturing, packaging and application industries.

Bright distress

Chip manufacturing equipment that MOCVD manufacturing industry is the commanding heights of the entire LED industry chain, high technical barriers. The relevant data show that in 2012 the German AIXTRON company, VEECO company in the United States and Japan Dayang acid company achieved a total of 90% of the global MOCVD equipment market share, and almost no China company can compete with the international line of Companies in this field.

Chip manufacturing industry is an important link in the LED industry chain. From the industry concentration, according to LEDinside data show that in 2013, the LED chip industry to further enhance the degree of concentration, from the top 5 manufacturers accounted for the closing rate of camp, increased from 61.9% in 2012 to 64.4%, 2014 is expected to reach 67.5%.

The domestic LED chip manufacturers three largest photoelectric data show that in 2014 to form an annual output of LED epitaxial wafers 10 million, 300 billion chip grain comprehensive production capacity, accounting for more than 58% of the total domestic production capacity, ranking first in the country, ranking third in Asia and tenth in the world. Although Sanan optoelectronics has become a worldwide leader in the production of LED chip, but unable to open up overseas markets, because the global high-end LED lighting chip market is dominated by the world's five largest enterprises (Nichia, TOYOTA, CREE, PHILPS and Lumileds synthesis of OSRAM), the five leading enterprises with a series of almost covers the entire value chain of LED the patented technology to maintain its competitive advantage and market share.

Only a few have the advantage in scale, technology, brand, channel resources on chip of LED company to win, to increase market share, while most other small and medium-sized enterprises in the next few years will be eliminated by the fierce market competition.

Another important aspect of LED is encapsulation. With the continuous development and evolution of LED packaging technology, packaging technology from the formal development to vertical, flip chip wafer packaging technology is becoming increasingly mature. Flip chip and wafer level packaging technology is an extension of the chip to the package, that is, chip manufacturers will be the future of the packaging process will be completed.

Such packaging market space will be compressed.

Thus, in recent years, LED packaging companies are actively restructuring, or face the acquisition or bankruptcy. As the country star power to the downstream, upstream and downstream in chip manufacturing LED lighting; Jufei extends from the back light source to backlight film; allring technology acquisition date photoelectric, the business extended to the logo, lighting applications. While most of the LED packaging companies will be more difficult, the next few years, industry consolidation is a big trend.

Application market is imminent

2008-2013 LED application although segments of the industry to maintain high growth, but growth mainly comes from the large-size backlight notebook, desktop, TV, tablet computer, mobile phone and other related small and medium size backlight, along with the promotion of intelligent mobile phone, mobile phone replacement tide driven backlight market once again active, during this period the total output value of the backlight the highest ratio of more than 70%, the highest in the large-size backlight accounted for 55%, has become a major driving force for the growth of the LED industry.

LED lighting market in 2014 will enter the outbreak period. According to the LEDinside report shows that the global market penetration of LED lighting is rapidly improving, in 2014 LED lighting output value will reach $17 billion 800 million, the total number of shipments of LED lighting products up to 1 billion 320 million, compared with growth of 68% in 2013.

The economic value of LED lighting is becoming increasingly prominent. The upper reaches of the chip, the package link costs continue to decline, LED lamp and energy-saving lamp price less than 1 times; with the rapid increase of home lighting products LED; high elastic demand into the growth stage, the demand for price sensitivity is greatly improved; policy perspective, in 2014 the global ban incandescent lamp into the second wave peak, LED lighting there are obvious substitution effect.

LED product prices decline, light efficiency increased year by year, energy efficiency increased year by year, life expectancy and other advantages, to promote the rapid development of LED lighting industry. Up to now, energy-saving lamps are the key products of traditional lighting against LED lighting. According to the calculation of the industry, compared to a family of 10 4 watt LED lamps and 10 15 Watt energy-saving lamps (light efficiency 4 watt LED lamp is equivalent to 15 Watt energy-saving lamps), using 10 LED lamps a year can save electricity about 200 yuan.

FSL LED division director Chen Wenji said: at the beginning of 2012 LED T8 tube (a lamp type) in the price of 180 yuan, to the end of 2012 has dropped to 40 yuan in 2013; this type of products from 40 yuan to 20 yuan; in 2014 has been reduced from 20 yuan to tens of dollars. The luminous efficiency is higher than the energy saving lamp, the price is lower than the energy saving lamp, the life is longer than the energy saving lamp, the LED illumination product has broken through the energy saving lamp the line of defense.

Another major product of traditional lighting incandescent lamp, has already entered the stage of elimination. As the fourth generation lighting source of LED to replace the traditional lighting is the trend of the times.

LED lighting market is developing rapidly, and now has become a billion level market space, but the market concentration is still very low, such as sunshine lighting optimistic estimate of 2014 LED lighting market share