LED lighting sector

LED manufacturers had an especially tough year in 2015 and 2016. Listed below are the major trends observed by LEDinside’s analyst team:

  1. Easing LED market growth in the near future

Even though lighting demands spurred LED usage volume growth, ironically the increasingly energy efficient LEDs are reducing usage volume. Additionally, LEDs still are under immense pressure to further lower prices.

  1. Shrinking LED component price falls

This can be explained by the growing number of manufacturers withdrawing from the market in the near future, as LED prices is close to manufacturing costs and reduce companies’ profitability.

  1. China’s changing LED policy

Future Chinese policies will encourage innovation, and focus on upstream raw materials, for example wide bandgap semiconductor development, or smart lighting applications following the emergence of the Internet of Things (IoT).

  1. Chinese LED manufacturers start acquiring foreign companies to transform their business models

More Chinese LED manufacturers are also transforming their business models. Some LED manufacturers aiming to leave behind hotly contended red sea markets are entering other market sectors through mergers and acquisitions.

  1. Trending low LED prices, and increasing replacement lighting market penetration

Lighting manufacturers on the other hand are seeking to raise their market shares through low pricing strategies to expand sales and revenue. Hence, LED light sources to replace traditional lighting products market shares will soar in the next three years.