Top 10 Stats The LED Industry Must Know In 2018 (1)

- Jan 05, 2019-

In 2018, the growth momentum of global LED lighting market is flat and weak. From the economic performance of various regions, in addition to the strong economic recovery in the United States, affected by the exchange rate and uncertainty factors, many emerging economies are facing the negative pressure of recession.

The overall economic slowdown, market recession, leading to weak demand for terminal lighting.

In such a situation, many LED companies have been setting up emerging markets such as vehicle lighting, landscape lighting, UV LED, plant lighting, IR LED, etc., allowing them to break through the difficulties and find a way out.

However, how big is the market for these LED applications?

OFweek's semiconductor lighting network will help you solve this problem with these top 10 stats.

LED lighting

In recent years, with the improvement of LED luminous efficiency, the gradual reduction of comprehensive costs, and the government vigorously promote energy-saving policies, LED lighting ushered in a period of rapid development, market demand is particularly strong.

According to OFweek industry research institute, the market size of LED general lighting in China will steadily increase in 2018, reaching 300 billion yuan with a growth rate of 16%.

 

With the continuous improvement of LED lighting market penetration rate, the market competition is becoming increasingly fierce, LED lighting enterprises also adopt different strategies to accelerate the transformation and upgrading.

One is to build a "big" enterprise through integration and merger to win by scale effect and integration ability.

The other is to adopt the strategy of "small but beautiful", focusing on the market segment, and seeking differentiated development.

Opm expands the diversified distribution channels of LED lighting business and deepens the international strategy to further enhance the value discovery and brand advantage of products.

Leishi lighting strengthens the integration of upstream and downstream resources and actively promotes the transformation of its sales model from "focusing on a single business type" to "combining multiple business types".

In addition, by focusing on overseas markets, delta lighting and rieter turn to domestic and foreign markets simultaneously;

Sunshine lighting begins to transform from light source to lamps and lanterns;

Shenghui lighting is actively engaged in global layout in the field of intelligent lighting.

LED packaging

In 2018, the external economic environment is complex, and various factors have profoundly affected the development speed and competition pattern of LED industry.

However, as the cost of LED beads decreases, more application scenarios are being developed. New applications such as MiniLED, plant lighting, intelligent lighting and vehicular lighting are leading the LED demand in the next phase.

China's LED packaging market will reach 100 billion yuan in 2018, with a market growth rate of 14.3 percent, according to OFweek industry research institute.

 

At present, the LED packaging industry has formed a situation of "one super strong" : "one super" wood forest is the largest, production capacity and revenue and peer is not the same level.

In recent years, mu linsen continues to seize market share by virtue of scale advantage, and forms cooperation alliance with hucan, aoyang shunchang and many downstream enterprises, and continuously expands its territory through equity participation and acquisition, and has become an important market force in the middle reaches.

After the acquisition of LEDVANCE, the scale of revenue is three times, become a world-class LED enterprises.

"How strong" in China, star power and honglizhihui firmly second camp, the size of the two, but each has its own characteristics.

Honglizhihui implements and promotes the "LED+ Internet of vehicles" dual industry strategy, and its main LED series products grow steadily. While expanding its LED production capacity, honglizhihui actively distributes infrared security, ultraviolet and other subdivided fields.

In addition to the development of display packaging as the main force, but also in the LED chip, lighting, so that its revenue share increased year by year.

The third echelon is ruifeng photoelectric, together fly photoelectric and other relatively small-scale packaging enterprises.

Although the current pattern of the initial set, but the shuffle is still continuing, resources to the head of the enterprise concentration.

The LED chip

According to OFweek industry research institute, China's LED chip market size in 2018 is 20.03 billion yuan, with a growth rate of 4.5%.

With the continuous expansion of domestic chip factories, overseas enterprises and domestic second - and third-line chip factories gradually reduce the capacity, LED chip industry gradually formed a new pattern: industry to the mainland, capacity to the leading cluster.

LED chip makers in Taiwan and China are facing high levels of inventory pressure as Chinese manufacturers of LED epitaxial wafers and chips continue to invest more capacity, leading to an oversupply of LED chips in the market.

According to statistics, at the end of the third quarter of 2018, the inventory value of SAN 'an optoelectronics reached 2.578 billion yuan (about $376 million), up 3.6% from the previous quarter and up 102.2% year-on-year.

By the end of September 2018, the inventory value of hucan photoelectric reached 1.237 billion yuan, up by 33.2% month on month.

The stock value of dry lighting is up to 407 million yuan, up by 64.1% year on year.

For Chinese Taiwanese chipmaker semiconductor optoelectronics, inventories were worth $172m at the end of the third quarter of 2018, down 1.4 per cent from the previous quarter but up 11.9 per cent from the same period last year.

While LED chip makers are ramping up inventories in an effort to slow price declines, prices have fallen 15-20 percent between the start of 2018 and the end of September.

The oversupply of LED chips is likely to worsen in 2019, as SAN 'an is expanding capacity and some additional capacity is expected to take effect in the middle of 2019.

LED automobile lighting

As a new technology of automobile lighting, LED has been highly concerned by many enterprises.

Leds reflect road signs better than xenon and HID lights.

In vehicles, leds can be used for lighting, safety, convenience and climate applications.

In addition, LED products have prominent advantages in terms of volume, light source efficiency, price and cost, performance stability, energy saving, etc., which gradually expands the application field of its automobile. It has been widely used in automobile headlights, automobile taillights, window lighting, functional lighting, advanced lighting, etc.

From this point of view, in terms of automotive lighting, LED lights are undoubtedly the latest trend of the current industry, and will be an important development direction of automotive lighting in the future.

Industry giants are leading the way in chips and other on-board components.

 

Thanks to the continuous increase of LED penetration rate, LED automotive lighting market keeps expanding.

China's LED car lighting market reached 26.38 billion yuan in 2018, up 14.7 percent, according to OFweek industry research institute.

Taking advantage of this, many local Chinese manufacturers focus on the layout of automotive lighting supply chain, especially the layout of the front loading market to change the past domestic LED automotive lighting market has been monopolized by international giants for a long time.

Despite the layout of domestic LED enterprises, Lumileds and osram account for more than 80% of the headlight market at present due to the high performance, high reliability requirements of automotive lighting and the relative closure of the automobile industry.

Samsung's main market is South Korea, with 10%.

The rest of the market for Asia and Taiwan manufacturers carved up.

Therefore, domestic LED enterprises to seize the automotive lighting market also need to strengthen technology research and development.

Intelligent lighting

With the advancement of intelligent hardware, Internet of things, artificial intelligence and other technologies, as well as the industrial upgrading of LED lighting industry, intelligent lighting industry has officially entered the track of rapid development.

With the increase of LED application scenarios and the development of Internet + and intelligent technology, the intelligent lighting industry will usher in new development opportunities and the market scale will continue to expand.

China's smart lighting market will reach 32 billion yuan in 2018, up 23 percent, according to OFweek industry research institute.

 

Because smart lighting provides many key advantages for residential, industrial, commercial, and government sectors, including energy efficiency, reduced maintenance costs, enhanced asset security, and ease of use.

With them, users can access the lighting system remotely from anywhere, anytime via a smartphone app.

In smart city infrastructure, operators can proactively predict demand for street lamp replacement and power outages, and improve site efficiency.

By leveraging LED lighting, connectivity, sensors and controls, and analytics and intelligence, businesses can successfully achieve the lowest cost of electricity.

Companies in the smart lighting market focus on product innovation and new product development strategies.

Companies are investing heavily in research and development of smart lighting technologies to launch internet-connected lighting solutions for home and building automation, smart cities and smart streetlights.

In addition, strategic cooperation to strengthen product development capacity and expand regional market share also contributes to rapid innovation in the intelligent lighting industry.