Market for high-brightness LED products to grow just 2% this year as the industry prepares for consolidation next year
Global market research firm TrendForce held its 2016 IT Industry Forecast Conference at Room 101 of the NTUH International Center in Taipei, Taiwan, on October 15, 2015. A team of senior analysts assembled from TrendForce’s major research divisions – TrendForce, DRAMeXchange, WitsView, LEDinside and EnergyTrend – will share their detailed forecasts on trends in major tech industries for 2016.
Below is a summary of the presentation given by ledinside during the second half of the conference:
This year has been very difficult for companies in the LED industry. While LED lighting products are seeing rising demands and have replaced numerous traditional products in different applications, their average selling prices have gone down by 30~40% due to oversupply. The value of the market for high-brightness LED products is projected to grow 2% year on year to US$14.52 billion in 2015. Duff Lu, the research manager, notes that the industry will undergo consolidation next year with companies merging or being driven out of business. With uncompetitive players leaving, the industry will gradually reorganize itself.