After entering 2015, under the background of steady growth and structural adjustment of the country, with the economic growth entering the "new normal" situation, the strategy of national powers led by "One Belt, One Road" and "Made in China 2025" is the LED industry. The development provides new great potential and development opportunities. In 2013, the domestic LED application market output value was 208.2 billion yuan, and it increased to 275.7 billion yuan in 2014, a year-on-year increase of 32.4%. As far as the current situation is concerned, the development of the LED industry is good and the industrial scale is growing steadily. It is expected that the annual output value of 450 billion yuan will be achieved in 2015.
Market size and structure
At present, the global LED industry is growing rapidly, and has formed a three-pronged industrial distribution and market competition pattern in the United States, Europe, and Asia. Asia is dominated by Japan, South Korea, and China. According to statistics from the OFweek Industry Research Center, the total export value of LED lighting applications in the first half of 2015 was approximately US$5 billion, a year-on-year increase of 16%. Although it experienced the ups and downs of the first quarter, it gradually stabilized from the second quarter, and the growth rate began to pick up.
Among them, the application of LED products is mainly distributed in the fields of indoor lighting, display, backlight, landscape lighting, outdoor lighting, special lighting, and other lighting.
From the perspective of the structure of the LED lighting market, it is mainly concentrated in Europe, China, the United States, Japan and emerging markets such as Russia, Brazil, Chile, and Argentina.
In 2015, China's LED industry will continue its upward trend in 2014 and usher in a new round of growth. Upstream epitaxial chip links, with the full launch of the application market, the accumulated capacity in the early stage was gradually released; the competition in the mid-stream packaging industry was more intense, and the industry shuffled; the downstream application links, with the advantage of China manufacturing, the overall output value further increased.
The OFweekLED research team believes that from the analysis of the operation of major LED listed companies in the first half of 2015, the overall gross profit margin of the upstream industry is relatively stable, showing a steady growth trend. The decline in gross profit margin in the midstream packaging sector is particularly evident in the first half of this year, while the growth in the downstream sector is more significant. During the same period, the gross profit margin of the LED industry chain showed a trend of “upstream>downstream>middlestream”. In terms of revenue and net profit, the entire LED industry chain is different.
Market pattern: With the intensification of competition in the LED industry chain, enterprises are facing greater competitive pressure and survival pressure in 2015. The integration and mergers and acquisitions among LED companies are more frequent, the strategic intentions are more diversified, and the integration direction is constantly adjusted. Resources are further concentrated in the industry. 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. In the face of increasingly fierce competition in the market, the domestic LED industry chain outstanding enterprises have increased their intention to go abroad, and the integration of overseas LED industry chain enterprises and channels will be put on the agenda.
Market situation: The penetration of small-pitch display has become the growth momentum of the display market. Intelligent lighting will become the development direction of LED lighting, and the invisible LED application market will gradually form, thus promoting the further upgrading of the LED industry market.
To further understand the development status of the LED industry in the first half of 2015, domestic and foreign markets, industrial operation status and industry market outlook, please contact the OFweek Industry Research Center and subscribe to the “2015 LED Industry Monitoring Report for the First Half of 2015”. The report analyzes in detail the current policy environment, development status, domestic and international product markets, competition status and LED key enterprise operations (covering the entire industry chain of the middle and lower reaches of the LED industry).