a Great Growth of China LED Package Market From 2014-2019

The scale of the China LED package market grew 19% year on year to US$8.6 billion in 2014. The growth of the China LED package market will slow down in the next few years as LED prices continue to fall. Its market scale is forecast to grow at a five-year CAGR of 9% from 2014 to 2019, when it will reach US$13 billion. The general lighting segment will be the main growth sector, whereas LED display and LED backlight segments will post slower growth and even decline in some periods, according to LEDinside.

LED package for lighting application represented 39% of the China LED package market in 2014. The market scale of LED package for lighting applications in China also reached US$3.3 billion that year. The lighting market has become the largest LED application in the country. Based on LEDinside´s report, the top five domestic LED package companies in the 2014 Chinese general lighting segment were (in order) MLS, Honglitronic, Changfang, NationStar and Refond. Furthermore, the 10 companies listed in the ranking below accounted for only 24% of the market share, indicating low market concentration in China´s general lighting sector.

China is currently the main global manufacturing base of LED lighting products, and OEMs/ODMs of brand vendors such as Philips Lighting, Osram Licht AG and IKEA are setting up factories there. The development surge in the LED lighting industry is driving the ongoing expansion of the China market demand. Therefore, leading LED package manufacturers, such as Japan´s Nichia and Taiwan´s Everlight, are also proactively developing the country´s general lighting application market.

Consequently, the China government has given strong support to the domestic LED industry. For the LED chip manufacturing in the upstream, the state has provided various subsidies. In the downstream market, major China cities are driving the LED replacement demand and launching demonstration projects. In sum, state support in the upstream manufacturing and the increasing penetration of LED products in the downstream markets fuel the development of the China LED package industry. LED by MLS and Honlitronic, China´s domestic LED package companies are experiencing a rapid rise and will continue to enlarge the scale of their enterprise as well as establishing a strong market position, the firm said.