LED lighting demand will surpass LED backlight in 2014

The growth performance of the LED lighting market in 2014 is highly expected by the market. Foreign-funded JPMorgan Chase Securities pointed out in a new report that LED lighting demand will surpass LED backlight for the first time in 2014, the dispersion of the LED lighting market rewrites the rules of the game, and LED factories are expected to get rid of the limited bargaining space caused by the concentration of LED backlight customers in the past. With the arrival of the LED lighting era, LED factories are expected to enjoy relatively stable gross profit performance and large bargaining space. The demand for LED lighting is expected to officially surpass the demand for LED backlight in 2014. The sharp decline in the price of LED products has contributed to the speed of consumer adoption. According to JPMorgan Chase Securities estimates, at present, the cost recovery time of commercial LED lamps such as A19 and PAR38 has been shortened to less than one year, and it is estimated that the price of LED bulbs will still have 30 room for price reduction by 2015, bring more attractive economic benefits for replacing LED bulbs. The LED industry will usher in a lighting era. JPMorgan Chase Securities estimates that the penetration rate of LED lighting in November 2013 will be only 5 in the same period of 2015, while the penetration rate of LED lighting is expected to exceed 20. JPMorgan Chase Securities believes that the demand for LED lighting has brought structural changes to the LED industry. Compared with the LED market dominated by LED backlight in the past, backlight customers are highly concentrated, while the LED lighting market has the characteristic of market dispersion, according to the previous calculation of the market share of the three major lighting manufacturers Philips, OSRAM and GE, the combined market share of the three major lighting manufacturers is only about 30, such dispersion characteristics are expected to bring more reasonable gross profit margin and bargaining space to LED factories than when they supplied LED backlight products in the past.