Market Analysis of LED Application Field

With the continuous improvement of LED luminous efficiency, the application of LED presents multi-level changes. From traditional applications to mobile phones and automobiles, it is estimated that it will be applied in four parts: mobile equipment, automobile industry, LCD panel and general lighting in 2006. The development trend is as follows:

LED display market analysis

LED display is the main application market of LED. In 2006, the market demand of LED display in China was 4.05 billion yuan, an increase of 25.1% over 2005. Communications industry researchers (CIR), an American market research company, predicted that the global LED display market will grow from 3.2 billion US dollars in 2004 to 5.6 billion US dollars in 2008 in five years.

At present, LED display has been widely used in stations, banks, securities, hospitals. In terms of LED demand, LED display is second only to LED indicator, accounting for 23.1% of the total sales volume of LED. Because the requirements of LED used for display are higher than LED indicator in brightness and service life, and the average price is higher than LED indicator, the market scale of LED used for display reaches 3.24 billion yuan, surpassing indicator and ranking first, becoming the main application market of LED. With its unique advantages, LED display is widely used in stadiums, municipal squares, concerts, stations, airports and other places.

Market analysis of LED backlight

LED has long been used in the backlight market of small size LCD panel based on mobile phones. The continuous growth of mobile phone production has driven the rapid development of backlight market. Especially in 2003, the appearance of color screen mobile phone promoted the rapid development of white LED market.

Since 2007, LED backlight has been widely used in notebook computer screen, liquid crystal display (LCD) and liquid crystal television, which will become a new driving force for the development of global LED industry.

Market analysis of LED automobile lamp

The response time of LED lamp is only 20ms, which is another advantage compared with traditional tungsten lamp (response time 25ms). This fast response time makes it one of the best brake indicator products. It can give drivers more response time when they need to brake in case of an accident, which is equivalent to reducing the distance of a 60 mph car by 24 feet.

A lot of data show that automotive LED will have a bright future. According to the observation report of Frankfurt Motor Show and the investigation report of LED and automobile manufacturers, fox predicts that by 2013, the sales volume of external application led will be equal to that of internal application led, and the market value of automobile LED will exceed 1.2 billion US dollars. Volkswagen and DaimlerChrysler have also joined the industry.

One of the biggest factors for the increase of automotive LED applications is the popularity of daytime running lights in Europe, which has swept Canada, Finland, Sweden and the United States. It is reported that daytime running lights can significantly reduce the occurrence of traffic accidents.    

Facing the increasing trend of daytime running lights, European countries are actively formulating standards. LED is the best choice for daytime running light, and it is expected to occupy a market share of US $100 million, which is equal to the revenue of taillight application field. As a car lamp, led mainly benefits from the characteristics of low power consumption, long life and high speed. LED will gradually realize the transfer from the car interior, rear to front, and eventually occupy the whole car lamp market. With the huge production capacity of automobile, LED lamp market is facing great development potential.

In 2005, the market scale of LED automotive applications in China was 29 million yuan, of which the market scale of automotive lamps was 21 million yuan. From the perspective of the whole LED application market, the automotive application market is still in its infancy, but with the vigorous development of China’s automotive market, the wide application of LED in this field is expected.

Market analysis of LED indoor lighting and traffic lights

Interior decoration lamp market is another emerging market of LED. Through the current control, LED can achieve hundreds or even thousands of color changes. In the era of personalized at this stage, LED color diversification is conducive to the development of LED decorative lamp market. LED has begun to make small decorative lights, decorative curtain wall application in hotels, rooms. In 2005, the market scale of interior decoration lamp reached $158 million. With the development of white LED and high-power LED technology, the application prospect of LED in lighting market will be more broad.

After years of replacement work, the work of replacing traditional traffic lights with LED traffic lights in major cities in China is coming to an end. After years of rapid growth, the market scale of LED traffic lights reached $1.52 billion in 2005.  The construction and replacement of traffic lights in tertiary cities make it possible for led to continue to grow in the traffic light market. It is estimated that the scale of LED in traffic light market will reach nearly $3 billion in 2025.

LED landscape lighting market analysis

The landscape lighting market mainly focuses on the decorative lighting of streets, squares and other public places, and the driving force mainly comes from the government. Affected by the 2008 Beijing Olympic Games and 2010 Shanghai World Expo, Beijing, Shanghai and other host cities have accelerated the pace of landscape lighting. Due to the low power consumption of LED, it has a strong market competitiveness in the landscape lighting market with huge power consumption. At present, LED has been more and more applied to landscape lighting market. In 2005, the scale of China’s landscape lighting market exceeded $700 million. Driven by the above two major activities, the landscape lighting market will reach a high growth rate of 72% in 2022.

In addition, the main role of the Olympic Games and the World Expo is no longer to drive the growth of the landscape lighting market, more importantly, its role as an example. In order to welcome the Olympic Games and the World Expo, a number of LED landscape lighting projects will be built in Beijing, Qingdao, Shanghai and other places. These projects will not only decorate the streets, but also play an exemplary role. In other cities, seeing the excellent performance of LED in landscape lighting will reduce the concerns about the use of LED landscape lighting, and accelerate the application of LED in landscape lighting. LED will rapidly expand from the first tier cities to the second and third tier cities.

General lighting market analysis

LED as a new lighting technology, its application prospects attract worldwide attention, especially the high brightness LED is known as the most valuable light source in the 21st century, which will cause a new revolution in the field of lighting. Since the emergence of white LED, it has the incomparable advantages in terms of luminous principle and function. Therefore, LED lighting has become a trend in the field of indoor lighting in the 21st century. LED will replace traditional incandescent lamps and fluorescent lamps, and traditional lighting lamps are facing severe challenges.

For entering the general lighting market, the power white LED will not only face the problems of low luminous efficiency, poor heat dissipation and high cost, but also face the integration of optics, mechanism and electronic control, as well as the formulation of general standards for LED lighting products. However, these problems have been solved step by step, which has laid a foundation for led to enter the general lighting market. CCID consultant predicts that it is inevitable for led to enter the general lighting market.

China has become the world’s largest producer and exporter of lighting appliances. In 2016, the output value of China’s lighting industry was about $32 billion. At present, there are 6000 lighting appliance manufacturers and about 4000 lighting and lamps manufacturers in China. It is estimated that about 30% of the enterprises will be involved in the production of LED lighting products in the next five years, which will lead to a substantial increase in LED demand.

Product application distribution

Products are mainly distributed in the following three categories:

Class I: signal indication application: function indicator of all electronic equipment, traffic indicator, etc

The second category: display applications: signs, billboards, large screen display, backlight display, etc

The third category: lighting applications: portable lamps, automotive lamps, landscape lighting, street lighting, special lighting, general lighting.

Analysis on the development status of LED manufacturing equipment (packaging equipment)

★Epitaxial production and chip manufacturing equipment industry in upstream and midstream

There are nearly 200 companies and more than 300 universities and research institutions in the world engaged in the research and development of GaN based LED material growth, device manufacturing process and related equipment manufacturing. The leading companies are mainly Nichia, Toyota Gosei, Sony, Sanyo, Cree Lumileds of the United States, In Europe, OSRAM, Philips and Taiwan, chip manufacturers mainly include Guolian, Jingyuan, Guanglei, guangga, canyuan and Lianwei. Because the core technology is mastered by developed countries such as Europe and the United States, domestic manufacturers are still in the research stage and have not yet formed scale production, including the 45th Research Institute, the 48th Research Institute and the second Research Institute of CETC Some achievements have been made in this field.

★Downstream packaging equipment industry:

In the downstream packaging equipment industry, there are nearly 50 companies in the world, and the leading companies are: ESEC of Switzerland, K & s of the United States, Shinkawa of Japan, Renesas of Japan, Siemens (F & K) of Germany and ASM of Hong Kong. There are about 30 companies engaged in downstream packaging equipment manufacturing in China. In terms of technical strength and scale, Han’s optoelectronics, cuitao automation and Daying CNC have the strongest strength. Han’s products only enter the industry in 2006. The products are limited to fixed crystal machines and spectrometers, which require strong financial resources but have average technical ability Dynamic, only solid crystal machine, wire bonding machine two product lines, in which the wire bonding machine product line has a good reputation in the market; Daying CNC product line is more comprehensive, almost covering the whole line of LED packaging equipment product line, mainly including: solid crystal machine, wire bonding machine, glue spraying machine, spectrometer, glue pouring machine, all machines, in which the spectrometer, glue pouring machine has a strong strength.

★Overall situation:

1)  because the price of foreign LED packaging equipment is too high for domestic LED manufacturers to accept, the market share of foreign equipment in the mainland is not high.

2) except for Han’s optoelectronics, cuitao automation and Daying CNC, the scale of other equipment manufacturers is small (the average number is less than 100), and their financing ability is poor, which has become the main bottleneck of their development and growth. Whoever can break through this bottleneck will have an advantage in the competition

3) the technical ability of manufacturers is generally low. Because the industry has just started, the technical accumulation of domestic manufacturers is relatively weak, so the technical ability is generally weak. Most domestic manufacturers are eager for quick success and instant benefits, and there are few enterprises that really cultivate their own technical personnel, which leads to the low technical level of the industry

4) the LED equipment industry is still in the rapid development of the industry life cycle, the competition situation is unclear, and the leading manufacturers with strong technical and economic strength have not yet formed. This is the best time to invest in the industry.