LED application market is booming


The total output value of China's LED industry reached 263.8 billion yuan, a year-on-year increase of 28. Among them, the output value of LED upstream epitaxial chips, midstream packaging and downstream applications were 8.4 billion yuan, 47.3 billion yuan, and 208.1 billion yuan, respectively, an increase of 17, 19, 31.
In 2013, the total number of MOCVD manufacturing equipment in China's LED industry increased from 917 in 2012 to 1,017, an increase of 11. Compared with the active exit of the old machine, the number of newly added MOCVD stations in 2013 exceeded 130. In 2012, China's MOCVD capacity utilization rate was only about 30, and the operating rate was only about 50. Driven by the demand in the downstream lighting application market, the capacity utilization rate of China's epitaxial chip companies increased significantly in 2013. To this end, the MOCVD capacity utilization rate has risen to 52, and the operating rate has also risen to around 70.
In 2013, the price of LED chips tended to be flat. The price at the end of the year fell by less than 20 compared with the beginning of the year. Compared with last year's decline of more than 30, Gaogong LED expects the price decline of chips in 2014 to further narrow. Due to the price drop, the output of China's LED chips increased by more than 50 in 2013, but the sales growth was only 17.
In 2013, the scale of China's LED application industry reached 208.1 billion yuan, a year-on-year increase of 31.
According to statistics, the distribution of output value in the application field in 2013 is:
LED indoor functional lighting, LED landscape lighting, LED outdoor lighting, LED special lighting, the total proportion of the four types of lighting accounted for 69.
In 2013, indoor functional lighting showed a booming growth trend, becoming the largest application area in the market, and the fastest growing application area. For the first time, indoor functional lighting applications have surpassed landscape lighting and become the largest application area for LEDs. In 2013, the indoor functional lighting achieved an output value of 62.6 billion yuan, a year-on-year increase of 86.65, accounting for 30% of the applied output value.
Analysts believe that in 2014, the global LED sapphire substrate prices will stabilize, and the national yield of PSS substrates will rise to more than 50. The extent of non-LED sapphire applications, especially mobile sapphire applications, will directly determine the balance of supply and demand in the sapphire industry.
In 2014, the number of new MCOVDs in China will exceed 220. Domestic MOCVD began to gradually introduce mass production and entered the mass production run-in period.
In addition, in 2014, LED indoor and outdoor functional lighting continues the explosive growth trend in 2013, and is the main engine for the development of the LED industry. Gaogong expects that in 2014, China's LED indoor and outdoor functional lighting output model will increase from 74.7 billion yuan in 2013 to more than 100 billion yuan, and the acceptance of the global market will be greatly improved.

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