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Analysis |
Global LED market value at USD 14.32bn in 2015
The latest report from LEDinside, a division of TrendForce, finds the total value of the global LED market (include both visible and non-visible LED products) arrived at USD 14.32 billion in 2015, representing YoY growth of -3 percent.
The market witnessed its first annual decline in value last year mainly because of the price war among the LED manufacturers, with the ASPs of some mainstream LED packages suffering a drop of 40 percent or more compared with 2014. The rising U.S. dollar also resulted in falling revenues for many manufacturers.
LEDinside Research Director Roger Chu explained that there were three major factors behind the negative growth in market value for 2015:
- Decrease in LED usage volume due to technological advancements: The introduction of flip-chip LED technology into the TV application, for example, has caused further reduction of LED usage volume for LED backlight units.
- The rise of OLED as the replacement technology: With the maturation of OLED technology, an increasing number of branded smartphone vendors are considering using OLED panels to differentiate their products. Since OLED panels are self-illuminating and do not require LED backlight units, they will eventually simplify mobile backlight design.
- Oversupply: The current price war in the LED market is the result of the industry experiencing oversupply and excess capacity. While the usage volume of LED lighting products continue to expand, falling prices constrain the growth of the overall market value.