The Institute of Industrial Technology of Taiwan recently pointed out that the LED industry is facing a trend of low price. The LED industry is recovering this year. However, as the price of the product is still falling, the profit margin of the LED factory is still compressed.
Guo Ziling, an analyst at the Industrial Economics and Trends Research Center (IEK) of the Industrial Technology Research Institute, believes that under the trend of low prices, the LED industry is no longer able to explode. The Taiwanese factory should take the scale economy to make up for the lack of energy, and at the same time with the brand. The factory cooperated to open the seaport and cultivate the emerging markets.
ITRI ​​estimates that the overall global LED market size is less than 10 billion US dollars last year. In 2020, the market size will be about 79 billion US dollars. The compound growth rate from 2011 to 2016 is 45%, but as the life of light source increases, It is expected that the market will be saturated after 2015, and the growth will slow down from 2016 to 2020. In contrast, as the LED light source market matures, the lighting market will move toward digital and intelligent development, and the proportion of the lighting market will gradually increase. It is estimated that by 2020, the LED lighting market will reach US$58 billion.
Cree launched low-cost LED bulbs, triggering other global brand factories to follow the low-price strategy, LED lighting penetration rate is expected to rise more rapidly, from Cree's launch of less than 10 US dollars bulb products, the overall ex-factory price is low At $2, for LED component manufacturers, the pressure for price decline will be even greater. Guo Ziling believes that under this trend, the LED industry is unlikely to have explosive growth.
The low-cost LED situation has been formally formed by the participation of international manufacturers. Guo Ziling said that the Taiwan factory faces the international large-scale factory has been in the high-power LED component market, while the land factory is rushing to grab the price at a low price. The Taiwan factory accounts for the global output value. The proportion has continued to decline in recent years, and the continuous decline in product prices has led to a slight increase in the output value of Taiwanese companies, but the profitability rate has continued to decline.
Guo Ziling, an analyst at the Industrial Economics and Trends Research Center (IEK) of the Industrial Technology Research Institute, believes that under the trend of low prices, the LED industry is no longer able to explode. The Taiwanese factory should take the scale economy to make up for the lack of energy, and at the same time with the brand. The factory cooperated to open the seaport and cultivate the emerging markets.
ITRI ​​estimates that the overall global LED market size is less than 10 billion US dollars last year. In 2020, the market size will be about 79 billion US dollars. The compound growth rate from 2011 to 2016 is 45%, but as the life of light source increases, It is expected that the market will be saturated after 2015, and the growth will slow down from 2016 to 2020. In contrast, as the LED light source market matures, the lighting market will move toward digital and intelligent development, and the proportion of the lighting market will gradually increase. It is estimated that by 2020, the LED lighting market will reach US$58 billion.
Cree launched low-cost LED bulbs, triggering other global brand factories to follow the low-price strategy, LED lighting penetration rate is expected to rise more rapidly, from Cree's launch of less than 10 US dollars bulb products, the overall ex-factory price is low At $2, for LED component manufacturers, the pressure for price decline will be even greater. Guo Ziling believes that under this trend, the LED industry is unlikely to have explosive growth.
The low-cost LED situation has been formally formed by the participation of international manufacturers. Guo Ziling said that the Taiwan factory faces the international large-scale factory has been in the high-power LED component market, while the land factory is rushing to grab the price at a low price. The Taiwan factory accounts for the global output value. The proportion has continued to decline in recent years, and the continuous decline in product prices has led to a slight increase in the output value of Taiwanese companies, but the profitability rate has continued to decline.
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