2017 global LED manufacturers accelerate their transfer to niche applications

In 2016, the global LED market output value growth rate is not high, but the overall industry has undergone dramatic changes. Chu Yuchao said that under the rise of the demand for small-pitch LED displays, the upstream LED chip supply is tight, making some LED chips and packaged devices appear for the first time in the past five years. According to the latest research, in 2016, the global LED market value reached 1.48 billion US dollars, an annual growth of 3.4%. Looking forward to 2017, the LED market competition is still fierce, manufacturers will accelerate to niche markets such as small-pitch display screens, infrared and ultraviolet LEDs for profit. It is estimated that the global LED market output value will reach 15.4 billion US dollars in 2017, with an annual growth rate of 4 %. In 2016, the global LED market output value growth rate is not high, but the overall industry has undergone dramatic changes. Chu Yuchao said that under the rise of the demand for small-pitch LED displays, the upstream LED chip supply is tight, making some LED chips and packaged devices appear for the first time in the past five years. As for the downstream LED lighting products, there has been a large price increase. The main reason is the increase in the cost of raw materials. In particular, the bulk metal materials such as copper and aluminum have risen in the second half of this year, making LED lighting manufacturers have to announce Price increases to reflect costs. However, Chu Yuchao pointed out that this wave of LED price hikes has limited help for the actual profitability of the manufacturers, so most LED manufacturers are actively thinking about the transformation strategy and accelerating the transfer into the niche market. The small-pitch LED display screen market has become a battleground for the military. In 2016, the small-pitch display screen was favored by many traditional LED display screen manufacturers. The main reason is that consumers' demand for high-quality images is increasing. Chu Yuchao said that the small-pitch LED display screen has driven the number of LEDs to increase geometrically, attracting many Chinese LED packaging factories to expand production capacity to grab this market pie. Under the pressure of huge capacity competition, LED industry tends to Move to a market with a pitch of less than 1.5 mm and use higher precision specifications to avoid price competition. UV-C LED application market will gradually expand with efficiency. Chu Yu pointed out that UV-C LED in deep ultraviolet spectrum is also the next blue ocean market that LED manufacturers pay attention to. UV-C LEDs have the function of sterilization and purification, and there is a high demand for application fields such as home appliances, water treatment, or air purification. At present, the external quantum efficiency of UV-C LED chips is still low and expensive. In the past, research institutions in Japan, Europe and the United States have been developing technologies without economies of scale. However, as more and more LED manufacturers begin to pay attention to UV -C LED, and investing in research and development resources, will help accelerate the market development of UV-C LEDs. Infrared LED components are more diversified. Infrared LEDs are relatively mature and low-cost products, and their applications are becoming more diverse, including iris recognition and somatosensory detection of VR applications. Chu Yuchao said that in recent years, infrared lasers have received increasing attention from the market, including handheld devices and car networking. However, the key to the growth of infrared LED applications is still the willingness of end-system operators to adopt and how to apply infrared components to create new added value. Micro LED products are expected to come out Micro LED is an opportunity to replace the next generation display technology of OLED panels, attracting many brand manufacturers to invest in research and development resources. Although the current Micro LED distance is still far away from the existing TFT-LCD (liquid crystal) and OLED displays, and there are still many new display technologies in the market, some manufacturers have planned to introduce market positioning different from LCD or OLED. The panel's Micro LED display application accelerates mass production with a lower PPI or a relatively small number of pixels. It is estimated that in 2017, Micro LED related products will be available.

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