LED industry chain from top to bottom includes chips, packaging, applications, drives, materials and other industries, while the middle and upper reaches include UV LED, IR LED and other market segments, downstream applications include LED display, LED street light, LED industrial and mining Lamps, filament lamps and many other applications.
LED trillion market size
According to the "LED industry market competition analysis and corporate competition strategy research report" statistics show that as of 2017, China's LED industry output value of 636.8 billion yuan, an increase of 21%, upstream chips high-speed growth, the midstream package is stable development, downstream applications remain fast Growth situation. Forward-looking Industrial Research Institute estimates that the compound growth rate of China's LED industry output value will reach 18% from 2018 to 2020. It is estimated that by 2020, China's LED output value will exceed 1 trillion, reaching 104.5 billion yuan.
Statistics and Forecast of China's LED Industry Output Value Scale from 2014 to 2020
China LED downstream application output value analysis and forecast
As the price of LED products continues to decline, the price/performance ratio increases, and consumers' awareness and acceptance of LEDs rise, the market penetration of LED products is gradually increasing, and the market scale is expanding. In 2016, the market size of China's LED downstream applications sector was 369.7 billion yuan, a year-on-year increase of 15.71%, which was equivalent to that in 2015. Display, backlight, lighting and other application sectors accounted for 12%, 11%, 66% and 11% respectively. As of 2017, the output value of China's LED downstream applications reached approximately 445.1 billion yuan, an increase of 20.4%. It is estimated that the output value of LED downstream applications in China will reach 524.3 billion yuan in 2018.
2015-2020 China LED downstream application output value statistics and growth forecast
With the advent of the LED era, the technology and product iteration cycle is accelerating, the integration trend of light source lamps, product form and diversification of demand have increased the technology, manufacturing and competition barriers of the lighting industry, and thus promoted the reshuffle of the industry pattern. The speed of integration is accelerating and the concentration is gradually increasing.
China's intelligent lighting output value analysis and forecast
At the beginning of smart lighting, it brings consumers a new consumer experience. However, after several years of development, the development of intelligent lighting is still not satisfactory. In 2017, this situation has changed a lot. Intelligent lighting is no longer “not warm and not fired”, and the intelligent lighting standing at the vent is even more “unlimited in money”. In 2016, the output value of China's intelligent lighting reached 14.7 billion yuan, an increase of 102.8% compared with 2015. As of 2017, the output value of China's smart lighting reached approximately 28.4 billion yuan, an increase of 93.2%. It is estimated that by 2018, the scale of China's smart lighting production will reach 46.7 billion.
China's smart lighting output value statistics and growth forecast for 2014-2020
China's LED display output value analysis and forecast
With the continuous improvement of LED display technology, the continuous decline of cost, and the maturity of products, the LED display industry is developing rapidly. As of 2017, the output value of China's LED display industry will reach 42 billion yuan. It is estimated that by 2020, the output value of China's LED display industry will reach 57.7 billion yuan.
China's LED display output scale statistics and growth forecast for 2015-2020
LED industry has sufficient market space
As a market space of hundreds of billions of dollars in the market of semiconductors and pan-semiconductors, the LED industry has a good track effect and provides a moister for the growth of excellent companies. Whether it is import substitution or endogenous growth, downstream applications are superimposed with new era, new energy and new environment, and the market space is sufficient.
In the middle and lower reaches of the LED industry chain, there is still a market potential worthy of deep exploration by enterprises. However, at this stage, the LED industry has entered a period of deep integration. LED large enterprises have begun to scale up, and small and medium-sized enterprises have deeply cultivated market segments and adopted differentiated routes.
In 2017, many powerful LED companies enhanced their competitiveness through internal mining of production points and external acquisition of high-quality resources. It is believed that in 2018, asset mergers and acquisitions will still become one of the effective growth methods for capital-purchasing enterprises.
In addition, enterprises should focus on technological breakthroughs and innovations, and build their own soft power from product design, product replacement, production intelligence, and marketing model innovation. Once again, upstream, downstream, and downstream enterprises need to continuously improve their supply chain management, and promote capital. The deep cooperation of the supply side allows the enterprises in the segment to work together.