From 2013 to 2015, the average price of LED bulbs that replaced 60W dropped by 30.74%, 23.36%, and 11.59% respectively. The average price of LED bulbs that replaced 40W dropped by 19.25%, 17.88%, and 14.52%. The annual price decline has slowed down significantly, and the decline in LED prices will continue this trend in the future. Following the price increases of some LED packaging manufacturers in March, Epistar also recently issued a price adjustment letter stating that it would increase the prices of some series of LED chips. In the future, chip price increases may be transmitted to domestic chip manufacturers, which will help the profitability of chip manufacturers. In the future, as LED subsidies decline, the supply side continues to shrink, and the growth rate of packaging scale declines, the overall supply and demand relationship in the LED industry will gradually improve.
As demand picks up, LED penetration will gradually increase
Global LED lighting penetration reached 27% in 2015 and maintained an upward trend. Domestic LED lighting penetration is slightly higher than the global penetration rate, about 30%, and there is still considerable room for development. In 2015, the LED packaging market in mainland China was US$8.8 billion, with a year-on-year growth of 2%. The demand for lighting manufacturers to replenish their inventories has emerged in the past six years. The LED packaging market in mainland China is expected to be US$9.3 billion in 2016, with a year-on-year growth of 5%. In terms of LED chips, the market share of Chinese manufacturers is also expected to increase from 73% in 2015 to 76%. As domestic LED manufacturers develop in emerging markets such as Southeast Asia and India, they will continue to benefit in the future.
The outdoor screen and automotive markets are expected to form new market opportunities
With the continuous improvement of the level of LED display technology, the display effect continues to be enhanced. At the same time, the progress of LED display technology has also greatly reduced the cost of operator screen construction and later operation and maintenance costs, so LED display screens have become the new darling of outdoor media. 2008-2014 LED Outdoor Communication The annual compound growth rate of media screens reaches 31.4%. The 13th Five-Year Plan points out that the new energy automobile industry will be vigorously developed, and the market share of domestic automobile manufacturers will gradually increase. The current automotive LED suppliers are mainly OSRAM, Lumileds, Hongli, etc. The rise of the automotive lighting market will provide new market opportunities for LED manufacturers.
ANNA