Analysis of the upstream, middle and downstream ma

LED lighting industry chain upstream, middle and downstream market analysis

easy to overflow] LED lighting is light-emitting diode lighting, which is a semiconductor solid-state light-emitting device. Using solid semiconductor chips as light-emitting materials, excess energy is released through carrier recombination in semiconductors to cause photon emission, directly emitting red, yellow, blue and green light. On this basis, using the principle of three primary colors, adding phosphors can emit light of any color

in the past five years, the global LED lighting market has increased from about $22.9 billion in 2012 to about $55.1 billion in 2017, with a compound annual growth rate of about 19.2%. Home and outdoor use was the main growth factor. Dimmable LED lighting not only helps to improve the indoor environment atmosphere, but also helps to save energy to a large extent. Due to the increasing awareness of environmental protection and the need to control energy consumption, the dimmable LED lighting market continues to grow rapidly and is expected to grow in the next few years

the upstream of the LED lighting industry chain is substrate production and epitaxial wafer production, the midstream industry is led chip production, and the downstream is led packaging, display screen, backlight application, automotive lighting, general lighting and other application fields. Among them, the production of upstream epitaxial chips and midstream chips is the key technology of LED, with high technical content and large capital investment. At the same time, it is also the field with the most intense international competition and the greatest business risk

▲ source: China Academy of commerce industry sorted out

upstream analysis of the industrial chain

generally speaking, single crystal and epitaxy belong to the upstream of the LED industrial chain, and the upstream belongs to capital and technology intensive fields. The upstream link has high technology content, large capital investment, great quality impact and high profit margin. The LED luminous color and luminous efficiency are related to the materials and manufacturing process of making LED, and the upstream accounts for about 70% of the LED manufacturing cost, which is extremely important to the LED industry. As an important optical material, sapphire has been widely used in many fields, such as science and technology, national defense and civil industry. Sapphire substrate chips have been widely used in LED lighting industry

and LED epitaxial substrate material is the cornerstone of the technological development of semiconductor lighting industry. Different substrate materials require different LED epitaxial growth technology, chip processing technology and device packaging technology. Substrate materials determine the development route of semiconductor lighting technology. The basic principle of LED epitaxial growth relying on major users is: on a substrate heated to an appropriate temperature, the substrate mainly includes sapphire, SiC and Si, and the gaseous material InGaAlP is transported to the substrate surface in a controlled manner, such as weak acid, to grow a specific single crystal film

epitaxial wafer growth mainly depends on growth process and equipment. The mainstream method of manufacturing epitaxial wafers is metal organic chemical vapor deposition (MOCVD), but even this most economical method, its equipment manufacturing is also very difficult. Internationally, only a very limited number of enterprises in Germany, the United States, Britain, Japan and other countries can carry out commercial production. The material of epitaxial wafer is mainly silicon, and silicon epitaxial wafer is also the main body of epitaxial wafer at present. The world's polysilicon, silicon monocrystal, silicon wafer and other epitaxial manufacturing materials are almost all controlled by Xinyue, MEMC, Wacker, Mitsubishi and other companies, which have a market share of nearly 70%. In recent years, the basic pattern of the domestic epitaxial film market is that foreign-funded enterprises dominate the product technology, and local manufacturers gradually rise

▲ source: China Academy of Commerce sorted out

midstream analysis of the industrial chain

in the LED lighting industry chain, the production of midstream LED chips is the key technology of LED, with high technology content, high equipment investment intensity, and relatively high profit margin. It is a typical capital and technology intensive industry. At present, the world's LED chips are represented by 260kg per day and European and American manufacturers; The second camp represented by Korean and Taiwan, China manufacturers; The third camp represented by manufacturers in Chinese Mainland

the domestic LED chip industry is mainly in Guangdong and Fujian. Among them, Guangdong chip factories are mainly distributed in Shenzhen, Dongguan, Guangzhou and Jiangmen. Fujian is an important place for LED chip production in China, and the main chip cities are Xiamen, Quanzhou and Fuzhou

▲ source: according to the data compiled by China Academy of commerce industry, the scale of China's LED chip market developed rapidly in, from 8.25 billion yuan to 18.8 billion yuan. The market scale increased by 10.55 billion yuan in five years, with an average annual compound growth rate of 22.9%; With the popularity of LED lighting products, the market demand for LED chips is rising. In 2018, the scale of China's LED chip market exceeded 20billion yuan

according to data, San'an optoelectronics ranks first in China, with a market share of more than 30%. Huacan optoelectronics ranked second, nearly 20%

▲ data source: China Commercial Industry Research Institute collates

downstream application analysis of industrial chain

LED downstream applications mainly include; General lighting, backlight, landscape lighting, display screen, automotive lighting, signal and indication, among which general lighting has the highest market share. According to the data, in the distribution of downstream output value of LED applications in China in 2017, the market share of general lighting was 47.7%, accounting for the highest proportion, an increase of 34.7 percentage points compared with the 13% share in 2009. In 2018, the market share of general lighting maintained an increasing trend

▲ data source: sorted out by China Academy of commerce industry

with the continuous improvement of the application penetration rate of LED products in downstream fields, China's LED application scenarios continue to expand, and the market scale continues to increase. Data show that the market size of China's LED application industry increased from 159 billion yuan to 445.1 billion yuan in, and the market size increased by 286.1 billion yuan in six years, with an average annual compound growth rate of 22.9%. According to preliminary statistics, the market size of China's LED application industry in 2018 exceeded 500 billion yuan

▲ data source: CSA, China Academy of commerce industry sorting

(original title: industry chain analysis | 2019 China's most complete LED lighting industry chain upstream, midstream and downstream market analysis)