The LED packaging market size will reach approximately 72 billion yuan in 2019

LED packaging is mainly used in lighting, LCD displays, backlights and other fields. Among them, LED packaging for lighting is still the largest application market for LED packaging, accounting for 49% in 2018. Due to Sino-US trade friction, China's LED lighting exports have been greatly affected, resulting in a slowdown in the global LED packaging industry market in 2018. Affected by this situation, major domestic LED packaging manufacturers have experienced overcapacity. In 2018, the LED packaging market in mainland China was 69.7 billion yuan, a year-on-year increase of 6%, and the growth rate dropped by 12% compared with 2017. The packaging market for traditional display screens and traditional backlights occupies a large proportion, but the scale of future growth is limited; the packaging of new Mini LED backlights or Mini RGB currently has low market acceptance, but is expected to become a new growth driver.

From the LED packaging supply side, in the Chinese market, mainland packaging manufacturers’ revenue in 2018 was 48.8 billion, a year-on-year increase of 7%, including first-tier manufacturers such as Mulinsen, Nationstar and Jufei. In 2018, mainland packaging manufacturers accounted for 70%, and the share did not increase significantly. The main reason is that the high-end automotive, high-end backlight and lighting markets are still dominated by international manufacturers. At the same time, foreign packaging manufacturers still maintained a growth rate of 4% in China in 2018.

The GGII LED Research Institute (GGII) analyzes that due to the impact of the Sino-US trade and import and export environment, China's LED packaging market is still not optimistic in 2019. The LED packaging market is expected to be about 72 billion yuan. Internal demand in the mainland market will become the main driving force for growth, including automotive LEDs, high-end commercial lighting, backlights and displays.