LED market gradually returns to the balance of supply and demand, and packaging factories turn to value war

A new round of price hikes is coming, and the price of domestic LED packaging and testing has been raised: recently, LED packaging companies such as Hongli Zhihui, smade, zhaochi, Jingke and Xuyu have issued a new round of price increase notice, raising the price of some products. Among them, Hongli Zhihui and smade respectively raised the price of the product by 5- 15 range, zhaochi energy-saving lighting decided to 0 from December 1. 2W lamp beads and parts 0. 5W lamp bead products increase sales price, of which 0. 2W increase the price of 10,0. 5W depends on the cost growth. And Guoxing Optoelectronics white LED products have also increased by 5-50. This price increase is the fourth price increase after March, May and August. On the one hand, after 15 years of LED product price war, many domestic manufacturers have transformed or reduced production capacity. Since this year, the supply side has been shrinking and the growth rate of packaging scale has declined. the overall supply-demand relationship of LED industry will also gradually improve. With the market adjustment and the reduction of inventory removal pressure, the market will gradually return to the state of supply-demand balance. On the other hand, since the second half of 2016, with the continuous sharp increase of raw materials such as circuit boards and gold wires, as well as the increase of labor and rent costs, packaging factories have also shifted from price war to value war. With the increase in raw material costs and labor costs, this price adjustment is conducive to the improvement of LED manufacturers' profits. The penetration rate of LED is gradually increasing, and small spacing is the highlight: In 2015, the penetration rate of LED lighting reached 27 and maintained an upward trend. We believe that the penetration rate of domestic LED lighting is slightly higher than the penetration level, about 30, and there is still considerable room for development. According to the forecast, the LED lighting market will reach 29. 6 billion US dollars in 2016 and is expected to reach 33. 1 billion US dollars by 2017, with a market penetration rate exceeding 52. 2015 Mainland China LED package market scale for 8. 8 billion beauty yuan with than growth for 2. And 2016 lighting manufacturers covering inventory of demand out of the cage is expected to 2016 Mainland China LED package market scale for 9. 3 billion beauty yuan with than growth will reach 5. Generally, the smaller the dot spacing is, the more lamp beads are used in the unit square. Therefore, the development of the LED small spacing market has increased the demand for LED lamp beads. at present, small-pitch LED display screen has entered the market growth period. Statistics show that the consumption of small-pitch LED will reach 29 billion particles in 2016 and 189. 8 billion particles in 2021, with an annual compound growth rate of 46. the output value is also expected to grow from US $0. 3 billion in 2016 to US $0. 8 billion in 2021, with an annual compound growth rate of 21. The outbreak of small spacing will further stimulate the demand for lamp beads, and the concentration of LED industry is expected to be further strengthened. some LED manufacturers will eventually benefit. The outdoor screen and vehicle market are expected to form new market opportunities: According to Wu Ling, secretary general of the National Semiconductor Lighting Engineering Research and Development and Industry Alliance, the output value of China's semiconductor lighting industry in 2016 is expected to reach 500 billion yuan. At present, it has high added value, new market segments such as intelligent lighting, plant lighting, UV-LED, IR- Emerging markets such as LED, optical communication and automobile lighting have become hot spots in the industry. In terms of outdoor display screen, with the continuous improvement of LED display technology and the continuous enhancement of display effect, the progress of LED display technology has greatly reduced the cost of screen construction and later Operation and maintenance. therefore, LED display screen has become the new darling of outdoor media. At the same time, the trend of high resolution and high density of outdoor display screens is also gradually rising, with the average spacing progressing from P10 to below P6, 2008- In 2014, the annual compound growth rate of LED outdoor media screen market reached 31. 4. It is estimated that the consumption of outdoor LED will grow from 93. 6 billion in 2015 to 286. 4 billion in 2021, with an annual compound growth rate of. At the same time, the 13th Five-Year Plan pointed out that the new energy automobile industry will be vigorously developed, and the market share of domestic automobile manufacturers will gradually increase. At present, the main automotive LED suppliers are OSRAM, Lumileds and Hongli. The rise of automobile lighting market provides new market opportunities for LED manufacturers.