LED industry output value exceeded 450 billion

After entering 2015, under the background of stable growth and structural adjustment of the country, with the economic growth entering the “new normal” situation, the strategy of building a national power under the leadership of the “One Belt and One Road” and “Made in China 2025” will be the LED industry. The development has provided new great potential and development opportunities. In 2013, the output value of domestic LED application market was 208.2 billion yuan, and it had grown to 275.7 billion yuan in 2014, an increase of 32.4% year-on-year. At present, the LED industry has a good momentum of development and the industrial scale has been steadily increasing. It is expected that the output value of 450 billion yuan will be achieved in 2015.

Market size and structure

At present, the scale of the global LED industry is growing rapidly. It has formed a three-footed industrial distribution and market competition pattern in the United States, Europe, and Asia, among which Asia is dominated by Japan, South Korea, and China. According to the statistics of OFweek Industry Research Center, the total export of LED lighting applications in the first half of 2015 was approximately US$5 billion, a year-on-year increase of 16%. Despite the ups and downs in the first quarter, it gradually stabilized from the second quarter, and the growth rate began to rebound.

Among them, LED products are mainly used in indoor lighting, display, backlight, landscape lighting, outdoor lighting, special lighting, and other lighting.

From the perspective of the distribution of LED lighting market structure, mainly concentrated in Europe, China, the United States, Japan and emerging markets, such as Russia, Brazil, Chile, Argentina.

Market operating conditions

In 2015, China's LED industry will continue its upward trend in 2014 and usher in a new round of growth. In the upstream epitaxial chip segment, with the full launch of the application market, the accumulated capacity in the early stage was gradually released; the competition in the packaging industry in the middle reaches was fiercer, and the industry reshuffle accelerated; in the downstream application segment, with the advantage of Chinese manufacturing, the overall output value further increased.

The OFweekLED research team believes that the overall gross profit margin of the upstream industry is relatively stable, showing a steady growth trend from the analysis of the operation status of major LED listed companies in the first half of 2015. The decline in the gross margin of the midstream packaging industry is particularly evident in the first half of this year, while the growth in the downstream areas is relatively In the same period, there was a slowdown, and the overall gross profit margin of the LED industry chain showed the trend of “upstream> downstream> midstream”. Corresponding revenue and net profit, the entire LED industry chain is evenly divided.

Market Prospects

Market Structure: With the intensification of competition in the LED industry chain, companies are facing greater competitive pressures and pressures for survival in 2015. LED companies have more frequent mergers and acquisitions, and their strategic intentions are more diversified. The direction of integration has also been continuously adjusted. Resources are further concentrated in the industry leader. At the same time, the export of LED lighting products has further expanded, and the strength of Chinese enterprises in technology research and development and product promotion has gradually increased. Faced with increasingly fierce competition in the market, domestic LED industry chain outstanding companies out of the country's intention to increase, the integration of overseas LED industry chain companies and channels will be put on the agenda.

Market trend: The increase in the penetration rate of small-pitch displays has become the growth momentum of the display market. Smart lighting will become the development direction of LED lighting, and the invisible light LED application market will gradually take shape, thus promoting the further upgrade and development of the LED industry market.

For further understanding of the status quo of LED industry development in the first half of 2015, domestic and international markets, industry operating conditions, and industry market outlook, please contact OFweek Industry Research Center and subscribe to “LED Industry Monitor Report for the First Half of 2015”. The report analyzes in detail the current policy environment, development status, domestic and foreign product markets, current competition status, and the operation of key LED companies (covering the whole industry chain of the mid-lower reaches of the LED industry).