According to the latest "2015 China Packaging Industry Market Report" by LEDinside, a green energy division of TrendForce, China's LED packaging market reached US$8.6 billion in 2014, with an annual growth rate of 19%. Among them, lighting is still the main growth driver of the market. With the rapid increase in the penetration rate of LED commercial lighting and home lighting, it continues to drive positive growth in market demand.
However, with the growth of packaging market demand, packaging forms have begun to gradually become standardized. In this regard, Osram Senior Marketing Manager Wu Sen said that the current mainstream LED packaging methods in the lighting market mainly consist of small and medium-power products packaged in PPA or PCT, medium-to-high power products in EMC packages, traditional ceramic packaged high-power LEDs, and COB packages.
Chen Jingyi of Fujian Tiandian Optoelectronics also expressed the same sentiment, believing that LED packaging size has entered the stage of public recognition. In the future, packaging products will be used as standard specifications components. There will be no more specifications, and in the future, they will focus more on improving performance.
As for the development of LED packaging forms in the market, the current main representative products are mainly small and medium power 2835, EMC packaging 3030, 5050, 7070 and finally COB. (PS: Although CSP is hot, it has not become mainstream). These three types of products are currently the hottest packaging products in the market. Will they become standard structures in the future?
2835 is still the "cost-effective" king in 2016 and may replace it
Throughout the history of packaging development, LED packaging does exist in different forms and models. In fact, only a small part of it meets customer needs, and more are some new product types tried to avoid competition. These have led to the rapid development of technologies and product forms in the upper, middle and lower reaches of the LED industry chain in recent years, making people feel that everything is changing and is not fixed.
Changing too fast will always compromise the sense of security. In this case, 2835 appeared with incomparable cost performance. Although 2835 has formed the most important standard component in the LED industry chain after many years of hard work by many companies. However, as a representative of the cost-effectiveness of LED packaging products, the optimization of cost-effectiveness cannot be terminated, because sailing against the current will lead to retreat. 2835 can only maintain its incomparable status by continuing to make a fuss about cost performance.
According to the quotation of LEDinside, a green energy division of TrendForce, the mainstream products in mainland China's lighting market in the second quarter of this year were 2835, with a decline of 10~17%, far exceeding other lighting packaging products. The price drop of its mainstream specification 0.5W reached 17%, which shows that the market price competition for this product is quite fierce.
The price of 2835 has dropped sharply, indicating that it continues to pursue high cost performance. Packaging will tend to be standardized in the future and will definitely be more compatible, practical and flexible. With the increasing modularization, the formation of standard optical components is the future trend of LED device development.
For 2835, most of the major packaging manufacturers have also put in enough effort. In their view, years of technology accumulation, mature process manufacturing, full market demand, and obvious price advantages are all the capital that allows 2835 to win the "favor" of enterprises. In this regard, Hongli Optoelectronics Liu Yusheng also said that 2835 can be said to be a disruptive product in the LED industry.
Yiguang Liu Bangyan also said that as the 2835 with the largest market demand, it is also the largest packaging product sold by Yiguang. However, Everlight will not be limited to the original form. It has upgraded the 2835 and launched 2016 to reduce the overall package size for the concentration of 2835. It takes advantage of the ultra-wide angle to reduce the number of LEDs under the same light average and reduce the overall lamp cost.
Can 2835 replace 2835 and become the mainstream packaging product in the future? This is a question that will take time to answer. However, it is reported that both the major manufacturer Lumileds and well-known domestic packaging companies such as Everlight, Tiandian, and Hongli have launched 2016. What is its future market position? Should we lead the way in standardization or be eliminated by it? I think only the market has the right to speak.
3030 market demand weakens and EMC large size may be popular
When talking about 3030, we have to talk about EMC. As a representative of EMC products, 3030, although not as good as 2835 in sales, is also a leader in the packaging field.
The packaging industry has been in a stage of rapid development and development of new materials and new processes in recent years. Currently, both Taiwanese packaging companies and domestic LED manufacturers have actively expanded their EMC product layout in the past 2014. Among these EMC products, based on the type of light source that has been successfully developed, the main model is 3030.
At this year's Guangya Exhibition, 3030 packaging products can be seen everywhere. In addition to domestic Ruifeng, Smed, Hongli, Tiandian and Everlight, there are also foreign big names such as Osram and Seoul who are deploying 3030.
However, according to LEDinside data, in the fourth quarter of last year, the price of medium-power LED products dropped significantly due to the increase in lighting inventory. Among them, the market demand for 3030 gradually weakened, causing the price drop to increase, with an overall drop of 16%. By the second quarter of this year, the price of 1W 3030 high-power LED products also dropped by 9%, and the prices of other products showed relatively small changes.
In order to maximize the advantages of EMC, Everlight, a leading packaging company, has optimized the cost performance of its products based on the original 3030, and extended the 5050, 7070 and 9595 series to compete with low-wattage COB. According to Guangya Exhibition, more than one company has the same idea as Yiguang. Among them are many companies such as Tiandian Optoelectronics and Smed.
COB has become a battleground and the price has reached a freezing point, yet to be discussed
According to the development direction of packaging plants, companies have launched EMC products to replace low-wattage COB. Does this mean that COB will only be positioned in the high-power market in the future?
In recent years, COB has become a battleground for LED packaging companies. International manufacturers are trying to widen the gap with domestic companies with high-quality and high-light-efficiency COB products to seize a large share of the market. They have expanded their COB product lines and are committed to improving high-quality, high-efficiency, and cost-effective COB products. Customized services and solutions have become the sales strategies of mid- and upstream manufacturers.
As the advantages of COB in the field of commercial lighting become more and more obvious, its mainstream solution for directional lighting seems to have become the mainstay of the future packaging field. However, the fierce competition in the market will inevitably lead to a price war. Industry insiders believe that after the price competition in the COB market last year, the market will gradually become more rational in 2015. They believe that the price of COB is close to freezing point.
However, recently, Crescent Optoelectronics has effectively reduced unit labor costs and manufacturing expenses by realizing large-scale, fully automated production, and its product prices are on average 0.05-0.1 yuan/W cheaper than before.
Things always happen for a reason. At this year's Guangya Exhibition, many packaging giants have launched EMC products to replace low-wattage COB, which will inevitably bring certain pressure to COB manufacturers.
ANNA