The total output value of China's LED industry will exceed 1 trillion yuan in 2020

On November 13th, at the online roadshow of Liad convertible bonds issuance, the company's chairman and general manager Li Jun revealed that the LED industry experienced overall development in 2018 after the market rebound in 2016 and the supply and demand boom in 2017. The growth rate slowed down and entered a declining cycle. The annual growth rate was about 13.8%. The LED industry's current round of growth has entered a declining cycle due to the combined effects of multiple factors.

At the macro level, due to the slowdown of the domestic economic growth, the government's "deleveraging" policy and the continuous escalation of the Sino-US trade war, the overall market confidence is insufficient; at the meso level, the real estate industry has entered a decline cycle under tight control and the automotive industry as a whole The decline in demand has led to weak demand in the LED downstream market in 2018; at the micro level, the rapid expansion of the industry under the rapid growth of the previous two years has led to intensified market competition in 2018, leading to declines in product prices and overcapacity in some companies.

In the long run, after years of rapid growth, the LED industry will gradually begin to mature, and the overall growth rate of the industry will gradually return. It is estimated that by 2020, the overall output value of China's LED industry will exceed RMB 100 billion, and the compound growth rate from 2017 to 2020 will still remain above 15%.