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Industry development to good, led industry rapid growth
- Jul 21, 2017 -

The concentration of LED industry in China is significantly higher than before, this situation may make domestic led industry into the outbreak of growth. Because the field of LED can be applied extensively, in particular, advertising media, stage background, sports venues and municipal engineering these areas, and led display of small spacing technology access threshold is higher, the new and Jin enterprises in the early development is difficult to have outstanding performance, which is to allow our led industry to increase the concentration of the industry is one of the reasons.

(1) The rapid development of the global LED industry

LED industry is in a high-speed development period, the current global led industry can be divided into four regions. One is Europe and the United States, with general lighting as the main direction, emphasizing product reliability and high brightness. The second is Japan, the most comprehensive technology, whether it is general lighting, or backlit display, have a strong strength, its development in the direction of universal lighting, automobiles, mobile phones and television. Third, South Korea and Taiwan in China, to the laptop display backlight, LED-TV backlight and mobile phone backlight for the main direction, shipments, low unit price, low gross margin. Four is the Chinese mainland, the main main outdoor display, advertising screen and lighting and other fields. In recent years, under the strong support of LED industry in China, the LED industry chain in mainland China has been developing rapidly, and some domestic led enterprises have reached the world leading level.

Global LED market to maintain a rapid growth trend, mainly benefited from the LED demand in the indoor general lighting, building lighting, landscape lighting, backlight and outdoor led large-screen growth, such as explosion, in the next 3-5 years, as technology matures and costs fall, led in the field of general lighting market penetration will be further enhanced in the automotive lighting, special lighting, small spacing LED display and other applications will be further expanded, which will be the future to promote the LED new round of the main driving force of the explosion.

(2) The rapid development of LED industry in China

120W Energy Saving Outdoor LED Street Light.jpg

LED industry in China began in the late 60, because of the less application field, industrial development is slow, mainly in the Scientific research institute or with the background of the scientific research institutions led by enterprises, the industrial capacity is weak. Into the 21st century, due to the sustained growth of China's macro economy, the support of national industrial policy, as well as the continuous breakthroughs in LED technology, domestic led industry has developed rapidly, in recent years has formed a complete industrial chain, in the industrial chain each link to achieve large-scale domestic. From the number of enterprises and the value of the general pyramid-like distribution: Upstream led epitaxial growth and chip manufacturing link technology barriers, equipment investment intensity, with large-scale production capacity of the relatively small number of enterprises, and chip product size specification small, a chip manufacturers can supply for a number of packaging enterprises, production value accounted for less than 10%; the middle reaches led packaging link labor-intensive characteristics more prominent, the industry concentration is low, the competition is intense, the output value accounts for about 20%; downstream led application all over the backlight, Display, lighting, lights, instrumentation, etc. in many areas, the number of participating enterprises, the output accounted for more than 70%. At present, the domestic led has been gradually in the general lighting, backlight, landscape lighting, display, traffic signals and car lighting and other fields have been better application and promotion. From 2006 to 2016, the total output value of LED, including chip, package and application, increased from 35.6 billion to 521.6 billion, and the annual compound growth rate was as high as 28.75%.

In the lighting and display application demand continues to improve, led by China's leading industry will continue to maintain a faster development speed, market prospects. 2017 China LED industry overall output is expected to break through 600 billion yuan, industry growth rate will still be higher than 20%.

On the whole, in the past ten years, China led industry is in a rapid growth period, the period 2012 and 2015 appeared short-term adjustment, but did not change the industry's rapid development trend.

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