Guangdong Liangxin Photoelectric Technology Co., Ltd
International Dept Add: No. 17, Kanglong 3rd Road, Kangsheng Industry Park, Henglan Town, Zhongshan City, Guangdong Province, China,
According to the latest report from LEDinside, a division of the market research firm TrendForce, 2017 Chinese LED Chip and Package Industry Market Report, Chinese LED package market scale in 2016 reached RMB 58.9 billion, went up by 6% YoY, higher than expected. LED price held steady in 2016, some products saw price growth, and the industry is still in an uptrend under the drive of fine-pitch, automotive and lighting markets. As for the market outlook in 2020, it is expected that the Chinese LED package market size will be up to RMB 73 billion.
LEDinside analyze top six market trend, according to Chinese LED chip and package industry trend.
Trend One: Chinese LED Camp Dramatically Accelerate in the Market, Domestic Usage Rate Consistently Increase
According to LEDinside analysis, domestic usage rate in Chinese LED package market in 2016 came to 67%, though the international manufacturers headed by Nichia are still the major suppliers in Chinese LED package market. Five of the top 10 manufacturers are international enterprises, and Nichia topped the ranking. But, in view of Chinese manufacturers, MLS achieved rapid development, surpassing Lumileds and taking the second place in 2016, as well as NationStar and Honglitronic improved their ranks.
Trend Two: Chinese Lighting LED Market Steadily Increase
Chinese lighting LED market scale reached RMB 25.9 billion, which is lower than expected market. The main reason is that the demand for LED lighting in the global market did not witness a noticeable growth, causing China’s overall LED lighting export to slump. Yet, due to the demand and stable pricing in the domestic market, LED lighting in the China market still experienced a growth of 9% YoY in 2016, and LEDinside forecast that lighting LED market scale will increase to RMB 28 billion in 2017, and RMB 36.4 billion in 2020. with a CAGR of 9% from 2015 to 2020.
Trend Three: International Camp Release Lighting LED OEM Order to China
A number of international brand manufacturers (Lumileds, OSRAM, CREE, Samsung, LG Innotek) OEMs orders will gradually concentrated to China due to the low-power LED swept the lighting LED market, thus China's 1 tier manufacturers maintain high capacity utilization. The top five Chinese lighting LED manufacturers in 2016 is MLS, Honlitronic, Lightning Opto, Refond, and MTC.
Trend Four: Fine Pitch Display Market Demand Spur Each Manufacturer Expansion Plan
LEDinside analyze that display LED market is still growing due to the rise of fine-pitch display market demand. LEDinside estimates that display LED market scale in 2020 will be RMB 15.8 billion. Fine-pitch display LED was led by Everlight in the early stage. Many Chinese manufacturers have entered the area, including NationStar, MLS and Kinglight, which also spur each manufacturer expansion plan.
Meanwhile, AlInGaP LED capacity needs are also increasing in 2017. According to LEDinside analysis, San’an Opto, HC Semitek, Changelight, and Epistar all raise AlInGaP LED capacity in 2017.
Trend Five: Rising Domestic MOCVD Further Cost Reduction for Chinese Camp
According to LEDinside survey, the consolidated MOCVD shipment in 2016 amounted at 136 sets. Veeco mostly manufactured EPIK700 MOCVDs that feature larger chambers and it was therefore considered to produce the most chambers after recalculating the number of chambers produced using a K465i MOCVD as the reference. Meanwhile, Chinese MOCVD providers, such as AMEC and Topecsh, have been gradually rising lately, despite a total market share of merely 11% in 2016. Yet, after several tests were conducted by clients in 2016, domestic MOCVD equipment will be joining in the Chinese LED chip supply chain in 2017.
MOCVD equipment used to be in hands of western companies. Yet, ever since domestic MOCVD equipment emerged and local LED chip makers started testing it, it suggested a chance to see locally made MOCVD to be introduced to a part of chip makers’ plants in 2017. Also, as the equipment is pegged at lower rates, the total cost of ownership is likely to decrease.
Trend Six: Filament Bulb and Filament LED Market Demand Sufficiently Increase Year by Year
In the coming two years, due to the popularity of LED filament bulb in the Europe, North America, Australia, more and more manufacturers will enter this segment, and market scale will show a faster growth. LEDinside estimated that the global LED filament bulb market demand was 150 million pcs in 2016 and hit 600 million pcs in 2018.
On the packaging side, major filament LED suppliers will be Runlite, MLS, Refond, and Hangke Optoelectronics.
Authors Allen, Joanne / LEDinside