Analysis of China's LED Industry Market Status and Demand in 2017

Up to now, the main demand market of the LED industry has experienced three development stages: display and small-size backlight application stage, medium and large-size backlight application stage, and LED lighting application stage. From the global market point of view, the LED backlight application market is gradually saturated in 2014, and the market share has dropped from 15% in 2013 to 14%. LED (1) LED industry introduction LED is the abbreviation of Light Emitting Diode, Chinese translated into LED, It is a semiconductor device that converts electrical energy into light energy. The chip is the core part of the LED, and the chips of different materials can emit light of different colors such as red, orange, yellow, green, blue and purple. The LED production process can be divided into substrate preparation, epitaxial wafer and chip production, packaging and application. The application includes signals and indications, backlight, illumination, display and so on. According to the division of labor in the production process, the industrial chain of the LED industry is shown in the following figure, in which the virtual box represents the LED industry chain in which the company's current business is located. LED chip packaging refers to the process of encapsulating LED chips or brackets with materials such as epoxy or silicone. Specifically, the process of arranging, fixing, and connecting the LED chip and other components on the bracket or the substrate, leading out the terminal, and encapsulating and fixing by the moldable light-transmitting insulator medium to form an overall three-dimensional structure. The packaging process is mainly to provide sufficient protection for the chip to prevent the chip from being exposed to long-term exposure or mechanical damage in the air to improve the stability of the chip. LED devices are categorized by package: LED applications refer to the use of packaged LED devices for the production of a variety of applications, such as general lighting, indicator display, landscape decoration, backlighting, automotive, and more. LED devices classified by application field 2017 China LED industry market status and demand analysis (2) LED industry development overview 1 LED industry overall development profile A, global LED industry development boom cycle, enter the lighting application drive era LED downstream application market development The development of the LED industry is different from the development of other single-market industries. Each improvement of LED technology will bring different market application development space, which makes the LED industry have a long development cycle. Up to now, the main demand market of the LED industry has experienced three development stages: display and small-size backlight application stage, medium and large-size backlight application stage, and LED lighting application stage. From the global market point of view, the LED backlight application market is gradually saturated in 2014, the market share has dropped from 15% in 2013 to 14%; the proportion of LED display applications has dropped from 28% to 26%; the proportion of LED general lighting application market continues to increase , increased from 29% in 2013 to 34%. Lighting applications have become a new wave of high-speed growth in global LED applications. The global LED application market structure in 2014 B. The domestic LED industry entered a track of healthy growth, and the application market grew rapidly. Since 2004, under the promotion of the national semiconductor lighting engineering plan, China's LED industry has developed rapidly. From the perspective of the current global LED market, China, as the global electronics industry manufacturing base, has become the fastest growing region in the global LED industry, initially forming the production of LED epitaxial wafers, the preparation of LED chips, the packaging of LED chips and the application of LED products. A relatively complete industrial chain. From the perspective of the industrial cycle, since 2009, China's LED industry has experienced a round of over-investment capacity to digest the price of the terminal chain of demand growth. Since 2012, China's LED industry has begun to enter a track of healthy growth. The rapid growth is mainly due to the demand for LED applications at home and abroad, especially the growth of LED backlight and LED lighting applications, providing effective support for the development of LED industry. From 2014 to 2016, the scale of China's LED industry increased from 350.7 billion yuan to 521.6 billion yuan, with an average annual compound growth rate of 21.96%. Among them, in 2016, the LED epitaxial chip market was about 18.2 billion yuan, up 20.5% year-on-year; the LED packaging market was 74.8 billion yuan, up 21.6% year-on-year; the LED application market was 428.6 billion yuan, up 23.2% year-on-year. China's LED industry market scale and structure from 2009 to 2016 (unit: 100 million yuan) China's LED application is the fastest growing link in the LED industry chain. In 2014, the overall growth rate of application was close to 38%. Among them, the general lighting market growth rate is about 69%, accounting for 41% of the domestic application market. The growth of LED backlight applications has slowed down, with an annual growth rate of about 17%. With the maturity and cost reduction of small-pitch LED display technology, domestic LED display applications also experienced rapid growth in 2014, with an annual growth rate of approximately 35%. In addition, LED automotive lighting, medical, agricultural and other emerging applications continue to open up, smart lighting, optical communications, wearable device applications become the new highlights of LED applications in 2014. In 2015, the LED application market grew by 21.98%. Among them, General Lighting is still the most important driving force for the development of the application market. In 2015, the general lighting market grew by approximately 32.5%, accounting for 45% of the domestic application market. In 2016, the LED application market grew by 23.2%, of which the general lighting market grew by about 30.3%, and the proportion of the domestic application market increased to 47.60%. It is the first driving force in the application market and continues to maintain a steady growth trend. At the same time, emerging applications such as agricultural lighting have grown rapidly, and smart lighting, small-pitch displays, and UV-LEDs have become hot spots in the application market. 2 Overview of LED packaging industry development A. Global LED packaging development status The global LED packaging industry is mainly concentrated in China, Japan, Taiwan, the United States, Europe, South Korea and other countries and regions. Among them, Japan, the United States, and Europe rely on the first-mover technical advantage and equipment advantages to become the world's first LED packaging industry center; Taiwan and South Korea have a complete consumer electronics industry chain, with clear division of labor, stable supply and marketing, and rapid rise in recent years; China The mainland region has undertaken global industrial transfer, benefiting from cost advantages and strong downstream product market demand. It has continued to grow in recent years and has become an important LED packaging production base in the world. According to the statistics of consultants such as Strategies Unlimited, the global packaging market has continued to grow since 2010. Especially since 2012, the global packaging market has entered a benign growth channel, and the market size and year-on-year growth rate have both increased. Among them, the global LED packaging market reached US$19.6 billion in 2014, an increase of 35.17% from US$14.5 billion in 2013, and the growth rate was the highest in the past five years. B. Development status of domestic LED packaging China's LED packaging capability has improved rapidly, and the package variety is relatively complete. Compared with the LED epitaxial and chip industry, the domestic LED packaging industry is more competitive and scale, and the technical level is also close to the international advanced level. Consistent with the trend of the global packaging industry, the domestic packaging market has steadily increased since 2012. Among them, from 2014 to 2016, the output value of LED packaging in China increased from 51.7 billion to 74.8 billion yuan, with an average annual compound growth rate of 20%. 2009-2016 China's LED industry packaging link output value (unit: 100 million yuan) (3) The company's LED business product segment market demand situation LED market application types, the market demand for sub-sectors is different. At present, the company's LED business products mainly include LED lighting products, LED packaging devices and LED backlight modules and accessories. The main market demand of these three types of products is as follows: 1 Market demand for LED lighting products At present, the company's LED lighting business is dedicated to the LED lighting segment. Under the differentiated competition strategy, the company's LED lighting product structure continues to be optimized, and the proportion of LED lighting products sales continues to increase, becoming the core product of the company's LED lighting business. LED lighting products are mainly used in commercial lighting, office lighting and home lighting. At present, the company's LED lighting products are mainly panel lights. The panel lights have the advantages of uniform light distribution, soft and comfortable, clean and bright, anti-mosquito and anti-fog and easy to clean. The shape and technology are stylish, simple and elegant. Integrated with the ceiling module, it has obvious application advantages in the fields of business, office, home kitchen and bathroom. Benefiting from the global LED lighting application explosion, the transition of LED lighting from the light source replacement stage to the utility model stage, the acceleration of domestic LED penetration in commercial and residential lighting, and the increase in overseas export demand for LED lighting, etc., the company's LED lighting The market prospects are good. A. Global LED lighting accelerates development and promotes the market space of LED lighting. LED lighting is known as the third revolution of human lighting. Compared with traditional light sources, it has energy saving, environmental protection, safety, small size, long life and rich colors. Features. In the case of the same power consumption, LEDs produce much higher luminous flux than current mainstream lighting products. After years of market cultivation, LED lighting has shown an explosive growth trend. In 2014, the global LED lighting output value reached 340.751 billion yuan, a year-on-year increase of 38%. With the support of policies such as energy saving and emission reduction and elimination of incandescent lamps in various countries and regions around the world, LED lighting will continue to maintain rapid growth with the overall cost performance of LED lighting products. GLII expects that by 2017, the global LED lighting output value will exceed 600 billion yuan, and the compound annual growth rate is expected to reach 23% in the next three years. The market prospect is broad. In December 2016, the National Development and Reform Commission launched a new light source project to promote the transformation of the semiconductor lighting market and promote energy conservation and environmental protection (referred to as the China Semiconductor Lighting Promotion Project). The project will focus on enhancing the development of the semiconductor lighting market, the semiconductor lighting market transformation policy and mechanism, and semiconductors. Four parts of lighting application demonstration and strengthening semiconductor lighting quality assurance capability are carried out, and it is hoped that it will play an important supporting role in promoting the transformation and upgrading of China's lighting industry and achieving national energy conservation and consumption reduction goals. China is the world's largest energy consumer. More than 70% of its power generation is thermal power generation. The power generation industry is an important source of carbon emissions. The demand for energy conservation and emission reduction is urgent. China's lighting electricity consumption accounts for about 14% of the total electricity consumption of the whole society. According to the 2016 LED lighting penetration rate, the annual electricity consumption is about 140 billion kWh. B. LED lighting is replaced by light source to transition to the utility model stage, accelerating the popularization of LED lighting. In the early stage of development of LED, consumers need to experience the transition and acceptance process in terms of usage habits and appearance, and the appearance of traditional light sources and LED-replacement light source products with consistent interfaces are the first to penetrate at this stage. In 2012-2014, it was mainly for the penetration of LED alternative light source. With the market's recognition and acceptance of LED lighting products, the environmental protection, small size, high reliability and other characteristics of LED lighting products have gradually emerged. Consumers are increasingly demanding the comfort, viewing and versatility of LED lighting products. The industrial design of LED lighting products is not a simple design concept, but more importantly, design research, user experience design, human-machine interface design, ergonomics and color and material design with product design as the core. LED lighting manufacturers effectively integrate lighting technology and product applications through industrial design, so that lighting products have a more novel design and light comfort, which makes lighting products more value-added, and at the same time, continually stimulate consumers' desire to purchase lighting. To meet the different lighting needs of consumers, thereby promoting the popularization and use of modern lighting fixtures that are different from traditional light source applications. C. Domestic LED commercial and civil lighting penetration has accelerated, and the company's lighting market has good prospects for domestic sales. The development of China's lighting industry has experienced the development stage of new light sources, from general lighting, traditional high-efficiency lighting to LED lighting, and has become the world's largest lighting appliance. Production, consumption and exporting countries. In 2014-2016, the scale of China's LED lighting application industry increased from 168.3 billion yuan to 267.8 billion yuan, with an average annual compound growth rate of 26.17%. Among them, the scale of LED general lighting increased from 116.9 billion yuan in 2014 to 204 billion yuan in 2016, with an average annual compound growth rate of 32.08%; in 2016, LED general-purpose lighting accounted for 47.60%, which is market development. The main driving force. The popularity of LED lighting in China was first promoted by government policies. Therefore, the main application and promotion in the early stage of development was concentrated in the fields of municipal transportation and nightscape engineering, such as the demonstration project of the ten-city Wanhao semiconductor lighting products, and the corresponding LED lighting products including LED street lamps. , LED landscape lights, etc. With the promotion of the elimination of incandescent lamps in China in 2016 (from October 1, 2016, more than 15 watts of incandescent lamps for general lighting in China will be fully delisted in China), the decline in the price of LED lighting products and the increase in consumer awareness, In the next 3 to 5 years, the LED commercial and residential lighting market will be huge, and the penetration rate will increase rapidly. In 2016, the domestic market penetration rate of LED lighting products (the domestic sales volume of LED lighting products/the total domestic sales volume of lighting products) reached 42%, compared with 2015. The year has increased by 10 percentage points. The company's LED panel lights, lamp panels and other LED lighting products are mainly used in commercial and civil fields. With the continuous improvement of light efficiency and cost, it has gradually replaced the common grille lamps, which is suitable for new construction or Renovated waiting rooms, upscale hotels, offices, viewing balconies, corridors, and general homes. In the Chinese lighting market, the number of lighting products installed in various buildings accounts for more than 85%. The lighting demand of new buildings can basically reflect the mainstream demand of the lighting market. According to the illumination and other related requirements of the Architectural Lighting Design Standard GB50034-2013 and the completion of the building construction, the total demand for new building luminous flux in China exceeded 1 trillion lumens in 2016, and the LED lighting flux is estimated to increase the lighting of the building. The demand is about 770 million baht, and the market space is wide. China is a traditional exporting country of lighting products. Driven by the growth of global LED lighting demand, the export of LED lighting products in China has experienced a high-speed growth. In 2012-2014, LED lighting exports have grown at a rate of more than 50% for three consecutive years. After years of high growth, since 2015, the total export volume of LED lighting has begun to stabilize, and major markets such as Europe and the United States continue to maintain growth. The total export value for 2016 is estimated to be approximately $10.5 billion. From the perspective of various export markets, the growth rate of the US market is 17%, the growth rate of the EU is 23%, the export of the Russian and Japanese markets is declining year-on-year, and the market in the Middle East is booming, with a growth rate of 27%. China's LED lighting products are mainly exported to Europe and the United States and other markets. From January to November 2016, exports to the EU accounted for 27%, and exports to the United States accounted for 23%. According to the "2016 China Semiconductor Lighting Industry Development White Paper" released by CSA Research, from the perspective of export products, the mainstream products of China's LED lighting exports in 2016 are still indoor lighting products, and the export volume of bulb lamps ranks first, followed by tube lamps. , light bars and decorative lights. However, the market share of several major products (bulb lamps, tube lamps, light bars and spotlights) is gradually shrinking, with tube lamps decreasing by 11.99% and spotlights by 28.98%, while decorative lamps, floodlights, and flats. Lights and other growth rates are faster, with flat lights increasing by nearly 120% year-on-year. At present, the issuer's LED lighting products are mainly sold to overseas markets, and mainly in the high-end market in Europe and America. The rapid growth of demand in overseas markets, especially the rapid growth in demand for LED panel lights, contributes to the development of the company's LED lighting overseas business. 2 The market demand for LED packaged devices and LED backlight modules and components The company's LED packaging devices and LED backlight modules and accessories are mainly based on display manufacturers. Among them, LED package devices are mainly customized, mainly used for ultra-thin display indicator lights. The market development of displays is usually measured by the shipment of display panel area. According to IHSDisplaySearch research, the display panel market has continued to grow since 2012. In 2014, the display panel shipment area of ​​all flat panel display applications in the world was 169 million square meters, up 9% year-on-year. By 2020, the display panel demand area is expected to grow to 224 million square meters, with an average annual compound growth rate of 4.79%, maintaining a steady growth trend.

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