The global lighting LED packaging market is in recession

According to the LEDinside Gold Member Report of the LED Research Center of Jibang Consulting, the global lighting LED packaging market output value is expected to continue to decline, reaching US $ 6.276 billion in 2023 due to the impact of the overall economic downturn and the decline in the unit price of lighting LED packaging products. In 2018-2023, the CAGR was negative 3%.

Jibang Consulting analyst Wang Ting said that due to the widespread popularity of China's domestic MOCVD machines, coupled with the promotion of local government subsidies in China, China's LED chip production capacity continued to be put into place, making LED chip prices into vicious competition. Especially in the LED chip market for lighting, it is almost difficult for manufacturers to make a profit.

In addition, from the overall economic environment, the Sino-US trade war negotiations are not going well. The 25% tariff imposed by the United States on China has become an established fact, and LED bulbs are also included in the tariff list. The amount of US exports decreased. Among them, the serious impact is the lighting export companies that are highly dependent on the US market, as well as the foundries of some multinational lighting companies. Although some orders have begun to be transferred to Southeast Asian countries such as Vietnam and Thailand, the local industrial chain is not complete and the overall production cost is higher than China. It is difficult to undertake capacity transfer from China in the short term. As a result, the import cost of lamps and lighting products in the North American market has increased, which has affected market demand. North America is the world's largest market for lighting products, and it has jointly impacted the growth momentum of the global lighting industry.

Packaging manufacturers strive to reduce costs, high voltage LED solutions are gradually popularized

Under the impact of the sluggish upstream market and sluggish terminal demand, the average price of lighting LED packaging products continued to decline in the third quarter of 2019, falling by about 1% -6%, of which 0.2W and 0.5W 2835 LED products has a significant drop of 6% and 5 %.

Jibang Consulting also observed that as lighting brand manufacturers continue to streamline costs, packaging manufacturers' demands for lowering material costs have become more urgent. Therefore, high-voltage LED solutions that can reduce the cost of driving power, which are gradually popularized and the scope of application is also expanded. At present, high-voltage LED solutions mainly use 9V (100mA) ~ 18V (50mA), which reduces the cost of capacitive components in the power supply by reducing the current. At the same time, the rise of this technical solution has also replaced the original market position of low- and medium-power LEDs. It is expected that the number of LEDs used in lighting fixtures will decrease.