2016 LED factory survival depends on three major markets

With the development of the LED market over the past few years, it has become apparent that manufacturers in individual fields are already leading and lagging behind. In the case of oversupply of low-priced LED chips in the market, LED manufacturers will strive to survive in 2016, and they will move toward different niches. Market, finished lamps, and a large number of reloading markets, while the LED backlighting market of traditional ICT industry is already a small number of large players. After becoming a standard product, there is little difference in competition. Only manufacturers who pay attention to details and abundant production capacity Can win, but Maori may not be able to go back.

The dilemma faced by LED manufacturers is that too many low-priced standard products are sold in the market. Therefore, the prices will not be good, and the gross profit margin will also shrink. If the orders are not received, the revenue will not be enough and it will become a dilemma in operation. The stable and profitable LED manufacturers, in addition to LED standard products, have found more niche-type markets, relying on their own connections, special applications, and the establishment of technical thresholds to master automotive LED and invisible light LEDs. (UV LED, IR LED), military regulations LED and other niche market.

The LED lighting products manufacturers with large impulses are the major market for LED light sources in the global market, especially in the United States, including LED lamps, MR16, and LED projection lamps. This is also an important market to survive in 2016. .

As for the finished lighting market, although there are many people who do it and the price is fiercely competitive, the gross profit that can be added is also an important channel for LED downstream manufacturers to maintain profitability. In addition to the standard product sales, as long as they can make some finished lamps The order of the company's operations can still be life-saving.

In 2016, the Chinese government has reduced subsidies for MOCVD machines upstream of LED chips. Large-scale decline in LED wafer prices is already an unlikely event. Therefore, LED chip market is stabilizing, and LED lighting is choosing a light source. When selecting components for use with other LED applications, it is more mature than ever and it is easier to find the right mix of products to offer to the market.

Several relatively large hidden troubles are the negative impact of low-quality and past-standard LED products on the market for low price sales. The use of poor phosphors, plastic materials LED light source, LED light machine products, is negative to the market Only the more market education and certification, standardization, to encourage businesses, consumers to adopt a new generation of LED products with better quality, in order to avoid the sharp drop between low-priced and high-priced products when LED lighting is used in the industry. Affecting people's willingness to use LED products will also be detrimental to the overall market over the long term.

Smart lighting will now develop faster in markets such as Europe, the United States, and Japan. However, overall, it is still a mature market. Manufacturers cannot hold too much expectation.

LED network estimates LED will have better development in the automotive, agricultural lighting, medical lighting, the overall growth will be more significant.