Looking at the three major trends from the LED lighting

LEDinside, the global market research organization's Green Energy Division, is the latest "Global LED Packaging Industry Market Report". In 2014, the LED packaging market reached a value of US$14.6 billion. In 2015, it grew slightly to US$15 billion, with an annual growth rate of only 3.2%. LED inside research associate manager Yu Chao said that the growth of the LED packaging industry market is slowing down, and the rise of Chinese manufacturers has brought strong competitive pressure to the market, which is the most severe test of the LED industry in 2015.

A large number of Asian manufacturers have invested in the LED industry, allowing LED lighting to enter the Red Sea killing market ahead of schedule, forcing the traditional lighting manufacturers such as Philips and Osram to make major changes in response to changes in the lighting market. LEDinside predicts three future trends in the LED lighting industry as follows:

1. In the era of low-cost lighting, LED manufacturers have achieved cost advantages through economies of scale.

In order to respond to the low-cost LED lighting products, LED specifications are gradually becoming standardized. In particular, Chinese LED manufacturers are taking government subsidies, special funds, and economies of scale to attack the middle and low-end markets through price and cost advantages.

Medium-power LEDs have replaced high-power LEDs as the mainstream of the lighting market. Among them, the 2835 LEDs with economies of scale are particularly favored by Chinese LED manufacturers, and they have invested a large amount of 2835 LED capacity. Benefiting from the Chinese self-made ratio increase and economies of scale of various materials, the 2835 LED has the advantage of low price and is suitable for alternative light source products in the bulb and tube category.

2. LED manufacturers actively develop emerging markets

In the Asian region, such as Taiwan, China, Japan and other places, the LED lighting environment is highly competitive, so LED lighting manufacturers are actively looking for a new blue ocean to increase profit margins. As the price of LED lighting products gradually approaches the traditional light source, the acceptance in emerging markets is gradually increasing, and the requirements for patents in emerging markets are not too high, as well as the demographic dividend, policy support and other factors, LED lighting manufacturers in 2015 There will be opportunities to significantly open the market for emerging countries.

3. LED industry consolidation and elimination competition continues

In 2014, the common international LED manufacturers' strategic cooperation will continue until 2015. Whether through shareholding, joint venture, or strategic alliance, they can strengthen their product competitiveness and jointly develop the market. On the other hand, in some low-end lighting markets, small and medium-sized enterprises that lack cost competitive advantages or occupy a favorable market will gradually withdraw from the market.

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