2015 is a fairly tough year for most LED manufacturers. Although the market needs of LED lighting are still rising largely, and replacing traditional lighting in a large number of applications, but the average unit price decline of 30% to 40% due to oversupply and competition. Many manufacturers are facing a loss, even gradually out of the market.
Estimated this year’s global high-brightness LED market value amounted can be around 14.52 billion dollars. The annual rate of growth is only 2%; 2016 there will be only 14.95 billion dollars, increase of 3%. The number of LED lighting using sustainable growth driven by demand in the next, but the high efficiency of the LED will reduce the use of LED pieces, plus depreciation pressures, therefore look to the future of five years, the annual compound growth rate of the LED industry will not be 10% or more as the past years.
Manufacturers continued to withdraw from the market, LED price declines will slow
Backlight and lighting market demand not as good as expected this year. The average price of LED chip and package fell sharply in the second half more rendering style diving down. Some of them have even come to the material cost price level. Manufacturers are facing losses dilemma. LED still faces continued pressure to cut prices shortly, but the price has been close to the basic costs of many manufacturers. We can imaging that more and more manufacturers will be out of the market, and the decline pace of price will be gradually reduced.