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The Growth Possibility Of LED Industry

In 2020, China’s LED output value will exceed 1 trillion

According to the forecast of GGII, the compound growth rate of China LED products industry output value will reach about 18% from 2018 to 2020, and the scale of China’s LED output value will exceed 1 trillion in 2020.

According to the data of GGII, the output value of China’s LED chip industry will reach 18.8 billion yuan in 2017, a year-on-year increase of 29.6%; in 2020, the output value of China’s LED chip industry will exceed 28.8 billion yuan;

In 2017, China’s LED packaging output value reached 87 billion yuan, an increase of 18% year-on-year. GGII predicts that China’s LED packaging industry will maintain a growth rate of 13%-15% in 2018-2020, and the output value in 2020 will reach 128.8 billion yuan; The output value of LED downstream applications will reach 445.1 billion yuan, an increase of 20.4%.

In the field of UV LED, according to the forecast of GGII, the global UV LED market will exceed US$1 billion by 2020, with a compound annual growth rate of 44.3%.

From the perspective of application fields, in terms of intelligent lighting, the output value of China’s intelligent lighting reached 14.7 billion yuan in 2016, an increase of 102.8% compared with 2015. It is estimated that the output value of China’s intelligent lighting will reach 28.4 billion yuan in 2017, an increase of 93.2%. GGII predicts that by 2020, the output value of China’s smart lighting will reach 103.5 billion.

In 2016, the scale of China’s landscape lighting market reached 55.8 billion yuan. It is estimated that the scale of China’s landscape lighting market will reach 67.8 billion yuan in 2017, with a growth rate of 21.5%. Among them, architectural landscape lighting is the largest market segment of landscape lighting, and its market share has reached 37.5% in 2016. It is expected that the architectural landscape lighting market will continue to expand in 2017, with a market share of 38.7%.

With the continuous improvement of LED display technology, the continuous decline of costs, and the increasingly mature products, the LED display industry has developed rapidly. According to data from the LED Research Institute (GGII), the output value of China’s LED display industry will reach 42 billion yuan in 2017. GGII predicts that the output value of China’s LED display industry will reach 57.7 billion yuan in 2020.

The latest data from GGII predicts that in the next few years, the market size of the industry will grow steadily. It is estimated that by 2020, the market size of LED automotive lighting in the Chinese market will reach 57.143 billion yuan, compared with 2016. An increase of 14.867 billion yuan, an increase of 35.17%.

In 2016, the global LED filament lamp market scale reached 2.9 billion yuan. It is estimated that in 2017, the global LED filament lamp market will reach 5.66 billion yuan, a year-on-year increase of 95%. With the improvement of the standardized production of filament lamps, the market demand will continue to expand. GGII predicts that the compound annual growth rate of the global LED filament lamp market will reach 47.7% in 2017-2020.

Benefiting from the collective recovery of the China LED light market, China LED street light market reached 9.46 billion in 2016, a year-on-year increase of 15.4%. By the end of 2017, the penetration rate of domestic LED street lamps was close to 40%.

In 2016, the output value of China’s LED industrial and mining lights reached 5.1 billion yuan, an increase of about 18% year-on-year. Benefiting from the rapid growth of the export market, the market size of China’s LED industrial and mining lights will reach about 6.3 billion yuan in 2017, a year-on-year increase of 24.26%; it is expected that in 2020 The market size will reach 8.983 billion yuan.

Due to the huge development space of the LED lighting market in the future, the corresponding LED lighting drive power supply market also has a large room for imagination. Statistics from GGII show that in 2016, China’s LED lighting driver market demand reached 19.8 billion yuan, a year-on-year increase of 15.1%. GGII predicts that with the rapid development of foreign LED lighting markets and the further increase in China LED lighting market demand, the global LED driver power market will grow to 36.6 billion yuan in 2017. The demand scale of China’s LED lighting drive power supply market is expected to continue to grow rapidly, reaching 24.5 billion yuan, a year-on-year increase of 23.7%. By 2020, the domestic LED lighting drive power supply market demand scale is expected to reach 38 billion yuan.

With the advent of the LED era, factors such as accelerated technology and product iteration cycles, integration of light sources and lamps, and diversified product forms and demands have raised the barriers to technology, manufacturing and competition in the lighting industry, thereby promoting the reshuffle of the industry structure. The speed of integration has been accelerated and the degree of concentration has gradually increased.

Five years later, the overall space of the LED application industry may reach 200 billion

According to Utopia’s article “LED Application Industry Standards”, the LED application industry has experienced explosive growth since 2013, with the advent of small-pitch LEDs to expand indoor application scenarios and urban landscape lighting blowouts.

In the next few years there will be:

  • The overall growth of the LED display industry and the increase in the replacement rate of small-pitch LEDs (the global market space is expected to exceed 150 billion),
  • Urban landscape lighting will continue to boom in several years (the market space is expected to exceed 50 billion),
  • The start of cultural tourism landscape lighting (estimated short-term market space of 5 billion),
  • Small-pitch LEDs enter indoor super-large-screen TVs (the domestic market space is estimated to be 10 billion yuan),
  • Start of VR entertainment space (the space is not easy to predict, but it can be predicted with reference to Disney and other parks, there are more than 5 billion spaces.)

On the whole, the overall space of the LED application industry (excluding indoor lighting) faced by domestic LED application industry companies may reach 200 billion in 5 years. In 2016, the industry as a whole was only less than 50 billion, and there is still a lot of room for growth.

However, after the scale of the industry increases, the growth rate also decreases accordingly. There is no explosive growth rate in previous years, but the overall growth rate of the industry, especially the growth rate of leading companies, is highly likely to reach 30%. At the same time, it is entirely possible for this industry to produce a leading company with an annual revenue of 30 to 40 billion yuan, a profit of 4 billion yuan, and a market value close to 100 billion yuan.

The industry has just passed the introduction period and is in the middle of the growth period. Of course, during this period, the large economic downturn may lead to a slowdown in the expansion of landscape lighting, and the introduction of small-pitch LED TVs and VR entertainment may be later than expected, and there may be fluctuations in certain years. However, the overall industry is optimistic in the next few years. The stability is not as good as that of consumption, but it is also better than other emerging industries such as new energy or cycle industries. For industries with stable growth and low volatility, the valuation system will be relatively stable, and it is unlikely to face the danger of a sudden decline in the overall valuation of the new energy vehicle industry similar to the past two years.

The LED application industry is divided into indoor lighting and other display lighting. The overall space may be around 400 billion, 50-50. Among them, the competition in indoor lighting is very fierce and scattered, which is a typical Red Sea. There should be more than 20 listed companies in China. Another display lighting sector includes the outdoor display strips in the early stage (which is also a low-threshold decentralized competition) and the recent high-end outdoor display screens, indoor display screens, professional lighting and other subdivided spaces. First, the technology is still making clearer progress, and second, the customers in the application field tend to be high-end and concentrated. Therefore, the overall pattern has begun to show the phenomenon that the leading share is constantly increasing, which is more suitable for investment.

At present, domestic companies in the LED display application sector are already leading the world, and mainstream companies will basically go public in 2011-2014. After this round of industry outbreaks, the basic structure has been determined. Due to differences in strategic judgments, several listed companies have formed a double-leading pattern in which Leyard leads Unilumin Technology and pursues closely. difference.

After LED applications enter the high-end field from technology and scenarios, the requirements for technology investment and capital are higher. Small manufacturers scattered in various places in the past will be squeezed out or merged by leading companies, and the market concentration will further increase.

Therefore, companies with strategic rivals, strong business expansion capabilities, and strong capital operation capabilities are worth investing in

Lehman signed a 589 million yuan LED supply contract

On February 5, Shenzhen Ledman Optoelectronics Technology Co., Ltd. issued an announcement on signing a major contract. According to the announcement, recently, the company signed the “Supply Contract” (hereinafter referred to as “the Contract”) with the British company CC (2018) MEDIALIMITED (Chinese name: CC (2018) Media Co., Ltd., hereinafter referred to as “CCMedia”).

The content of the contract is that CCMedia entrusts the company to research, develop, manufacture, process, sell and deliver LED display products to CCMedia. : Calculated at 6.2885, or approximately RMB 588.6 million), accounting for approximately 105% of the company’s audited total operating income for 2016 in the most recent year.

As the first listed company in the Shenzhen LED industry, Ledman is a leading LED product service provider in the industry. It has been committed to the research and development, manufacturing, application and service of high-grade LED factory lighting products. The three major areas of packaging devices have expanded to nearly 100 countries and regions in the world. They have deep R&D and production technology reserves, good brand reputation, sufficient human resources and comprehensive financial resources, and have the ability to fulfill relevant obligations such as contract supply. ability.

Regarding this contract, Lehman said that the signing of this contract reflects the company’s international reputation and core competitive advantages as an industry-leading LED product service provider. The smooth implementation of this contract will have a positive and significant impact on the company’s future business performance, and will help improve the company’s brand influence at home and abroad, and will actively promote the company’s market development; in addition, this contract does not involve related parties The performance of the transaction and the contract has no significant impact on the independence of the company’s business and operation.

Samsung Electronics Procures Display LED Chips from Sanan Subsidiary

On the morning of February 6, Sanan Optoelectronics (hereinafter referred to as the “Company”) issued an announcement that the company’s wholly-owned subsidiary Xiamen Sanan Optoelectronics Co., Ltd. Co., Ltd. (hereinafter referred to as “Samsung Electronics”) entered into the Advance Payment Agreement.

The contract stipulates: In order to establish a long-term business cooperation relationship, Samsung Electronics will pay Xiamen Sanan an advance payment of 16.83 million US dollars (equivalent to about 106 million yuan) in exchange for the production of a certain number of display products (“display products”) in Xiamen Sanan production line. “screen”) LED chips, if the monthly order volume of Samsung Electronics may exceed the maximum amount agreed in the agreement, the two parties will discuss the conditions for expansion in advance. Xiamen Sanan and Samsung Electronics will continue to discuss Micro LED strategic cooperation. When Xiamen Sanan reaches mass production capacity, Samsung Electronics will consider Xiamen Sanan as the primary supplier and negotiate a supply agreement acceptable to both parties.

According to the announcement, through this strategic cooperation, Samsung Electronics hopes to secure a strategic and stable supplier, and Xiamen Sanan hopes to lead the Micro LED market.

Sanan Optoelectronics stated that the cooperation between Xiamen Sanan and Samsung Electronics, a wholly-owned subsidiary, is another manifestation of the online led lighting near me company’s transformation of technology into practical applications. The market share has laid the foundation for the company’s development goals.

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