LED price increases may heat upread count [285] release time：2020-03-25 19:57:00
As LED downstream applications continue to expand and market penetration gradually increases, emerging markets such as lighting, small-pitch displays, and automotive LEDs with high added value will bring incremental space to the industry. The agency predicts that due to factors such as the slowdown in the expansion of midstream packaging plants and the expansion of downstream application demand, LED price increases are expected to heat up in the future.
LED is a semiconductor device that can convert electrical energy into light energy. It has the advantages of energy saving, environmental protection, safety, long life and low power consumption. From the perspective of the industry chain, LED mainly includes upstream chip manufacturing, midstream packaging and downstream applications. Among them, downstream LED applications are mainly divided into lighting, display, backlight, decoration, automotive lighting and other fields. LED application is an important link with high added value in the entire industry chain.
According to statistics from the China Electricity Council, from January to November last year, my country's power generation was 5,370.1 billion kilowatt-hours, a year-on-year increase of 4.2%. The electricity consumption of the whole society was 5,384.7 billion kilowatt-hours, a year-on-year increase of 5%, resulting in 670 million tons of carbon dioxide emissions. my country's lighting electricity consumption accounts for about 14% of the total electricity consumption in society. As the market penetration rate of LED lighting products continues to increase, annual power savings will reach 100 billion kWh in the future.
In recent years, incandescent lamps have been rapidly eliminated. LED Has become the mainstream light source for lighting. According to data from the Semiconductor Lighting Network, the domestic market penetration rate of my country's LED lighting products reached 42% last year, a year-on-year increase of 10%, of which domestic LED lighting product output was approximately 8 billion units, a year-on-year increase of 33% ； Domestic sales of products were approximately 3.8 billion, a year-on-year increase of 35%. Currently, the largest market size among LED downstream applications is in the lighting field, followed by backlight applications and display screens. Among them, the scale of display screen applications maintains a steady growth trend, especially as the technology of small-pitch LED display screens continues to mature, LED display screen applications will gradually move from outdoor large-size displays to indoor applications. The rapid expansion of application fields has further increased the proportion of LED displays in the entire downstream application industry chain.
Data show that the overall output value of my country's semiconductor lighting industry reached 521.6 billion yuan last year, a year-on-year increase of 22.8%, of which the scale of upstream epitaxial chips was approximately 18.2 billion yuan, a year-on-year increase of 20%； The scale of midstream packaging reached 74.8 billion yuan, a year-on-year increase of 21.5% ； The scale of downstream applications was 428.6 billion yuan, a year-on-year increase of 23%. Last year, the output value of LED lighting reached 204 billion yuan, a year-on-year increase of 31.5%, accounting for 47.6% of the overall application market. In addition, the small-pitch LED display market size reached 54.8 billion yuan, a year-on-year increase of 29%, accounting for 12.8% of the overall application market. LEDinsides predicts that the consumption of small-pitch LEDs will advance at a compound annual growth rate of 46%, and will consume 189.8 billion particles by 2021.
As foreign LED companies adjusted their strategies and shut down product lines last year, overcapacity was alleviated. Local LED companies expanded their coverage and technical strength through overseas mergers and acquisitions. The agency believes that after industry consolidation and production capacity clearance, the LED industry will continue to see price increases driven by improved supply and demand, and the industry structure is expected to gradually improve.
