LED product price decline becomes the main market performance

Affected by the macro-economy, the LED industry is not optimistic in the second half of the year, and downstream demand bears the pressure of the industry. During the National Day holiday, the LED lighting field took advantage of the opportunity to expand the market. Major stores launched brand and price offensives, trying to use the strong market traffic for publicity.

He Zaihua, a senior researcher at CITIC Consulting, pointed out that due to the increasing uncertainty in the global economy, the outlook for LED terminal demand is weak, and manufacturers have cut production capacity on a large scale, and the number of days of inventory of suppliers has also decreased. However, at the same time, due to the corresponding continuous shortening of the channel circulation cycle, efficiency has been greatly improved, delivery time has generally been shortened, and customer waiting time has been reduced. Therefore, the current inventory status has not brought a major impact on the market. On the contrary, the market flexibility is stronger.

Under the unfavorable demand stimulus, the price decline of LED products has become the main performance of the market. Judging from the current investment plans of various manufacturers, there will be a large-scale release of production capacity in the next two to three years. With the increase in the localization rate of products, the price decline of products in all links will be a long-term trend of the market. Since 2009, the proportion of MOCVD equipment ordered by Chinese companies in the global order volume has continued to rise, making China the country with the largest increase in MOCVD equipment. The market development driven by the increase in MOCVD equipment should not be underestimated.

Zhang Yanlin, research director of China Investment Consulting, pointed out that as the first batch of cities gradually drive the industry into a mature track, new markets are gradually emerging. Some provinces and cities have launched urban lighting energy-saving activities through financial support, which not only provides unlimited business opportunities for the LED lighting market, but also provides a corresponding market environment for the development of the LED industry. For example, Chongqing, Ningbo, Zhengzhou, Huizhou, etc. have increased their financial support and competed to launch LED lighting projects.

According to the "2011-2015 China Semiconductor Lighting (LED) Industry Investment Analysis and Prospect Forecast Report" released by CITIC Consulting, sapphire substrate material manufacturers have expanded significantly since 2011. The supply chain problems caused by the earthquake in Japan in March have been basically resolved, and the overall production capacity has been restored. Therefore, if the production capacity is gradually released, it will greatly exceed the current market demand and will even have a certain impact on the subsequent market.