Trend interpretation: LED industry in the middle and lower three kinds of feelings

LED chip industry ushered in the oligopoly market

The increased concentration in the upstream chip manufacturers industry, enhance the ability of the local Chinese bargaining chip manufacturers in the top five market share increased year after year, up from 64% in 2013 to 67% in 2014, close to the oligopoly standards, each manufacturer production accounted for a considerable share of the total market, has a decisive voice on the market price and output. It is expected that the LED industry after a period of brutal price war, eliminate the survival of small enterprises, the LED chip industry will further increase the degree of monopoly, then will show a big rival pattern.

LED packaging industry expansion worrying

Even in the first half of 2015 again warmer downstream demand, effectively improve the packaging manufacturers capacity utilization, but part of the package as the industry concentration is low level is more scattered, lower trade barriers, such as fierce competition causes the packaging industry to retain profits, gross profit continued to decline. 2014 years of expansion of China's packaging industry grew by 50%, while China's chip manufacturers to expand production growth of only up to 20% in 2015, the degree of excess packaging capacity will exceed the chip. LED packaging industry, the overall decline in gross margin, although the degree of concentration of the packaging industry will continue to increase, 2015 packaging industry outlook is not optimistic.

LED price into sweet point penetration BBK

With the promotion of LED lighting technology and prices continue to decline, governments have issued a ban on incandescent lamps and other favorable policies, high-profile civil market began to really open the door to meet the arrival of the era of LED. 2014 LED lighting market output value of $35 billion 300 million, compared with growth of 47.8% in the year of 2014, LED lighting penetration rate also increased to 32.7%, of which the most widely used bulb lamp and lamp penetration rate of up to 20% and 15%, respectively, and. In contrast the backlight market, LED backlight and fluorescent tube when the spread is reached within two times the permeability increased rapidly, while the rate of decline has been over LED fluorescent tube falling speed, so in the next few years the price of LED into the "sweet spot". LED permeability is expected to usher in explosive growth. In addition, due to the extent of the decline in the price of LED has been slowing down, LED lighting applications gross profit margin is expected to stabilize, the future of LED lighting industry is expected to usher in a healthy development.

LED industry in the future will continue to maintain the overall oversupply, but LED industrial structure is expected to change greatly, the strength of the manufacturers will further expand production capacity, increase market share, while small and medium-sized manufacturers will accelerate the elimination of.

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