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Dry-goods brocade: fully read the trend of the LED industry

Time:2017-05-22 Views:248
  LEDinside, the research centre for research on the LED research centre in the state, has analysed the trends of the global LED industry in 2017. Because of the fierce competition in the LED market and the rising cost of raw materials, he said, more and more LED manufacturers are turning to profit guidance. Even big factories that had been able to take advantage of the scale of the economy have turned to the new blue sea market for high gross margins.
  At this stage, the so-called blue sea market is mostly a niche application of the past. Because the market size is small, and the path and patterns of individual applications are completely different, it is difficult to attract large factories to develop the application. However, with the increasingly fierce market competition, kill the wall in the application of the manufacturers in the mainstream at the same time, also begin to hope to find some application fields of high margin profit to support. LED display, such as small spacing or automotive lighting, not visible light, such as application, thus attracting various LED manufacturers have begun to massed tens and internal resources, hope to capturing the new blue ocean.
  However, as the companies moved in, the so-called blue sea was quickly washed into the red sea. But for these new applications, it‘s not a bad thing either. Because fewer people to operate in this field in the past, so the price is relatively high, as firms cut, however, more research and development resources, will help the technical breakthrough with the promotion of the market. Is what we call a niche market, is not innate market size has been limited, is more likely because the technology has not been breakthroughs and has lead consumers to accept, thus limiting the size of the market. So when companies are investing in development, as technology advances and prices fall, today‘s niche is likely to become the mainstream of tomorrow.
  Yu bin, an analyst at the center for research on LED research (LEDinside), has analysed and forecast the development of China‘s LED industry in 2017. China‘s LED lighting exports have been flat in 2016, with lighting not enough to drive the industry, yu said. But in 2016, prices have stopped falling, and the industry has continued to grow, driven by niche sectors such as car use and small space. In the upstream LED chip sector, the market was 13.9 billion yuan in 2016, up 9 percent from a year earlier, and the chip national production rate rose to 76 percent, while the top 10 percent of the market increased to 77 percent. In China, the market has reached 58.9 billion yuan in 2016, up 6 percent from a year ago, and the national rate of production rose to 67 percent, while the top 10 percent of the market increased to 43 percent.
  In 2017, the industry has entered the mature stage, the market growth is slowing down, lighting, small space and car use are still the main drivers of market growth. The big plants will continue to expand and take market share, and the trend for Evergrande in 2017 will be even more pronounced.