Intense market competition from Chinese LED manufacturers and deluge of LED suppliers on the market has made cost reducing strategies crucial for LED chip manufacturers’ survival. To cope in an increasingly low profit industry, LED chip manufacturers are developing more advanced and energy-efficient LED chip technologies, finding cheaper chip materials, or exploring untapped niche markets.
1. Backlight market outlook remains dim
The backlight sector, which remained the largest LED market sector untill 2014. LEDs high market penetration in this sector has left almost no room for growth. Moreever, emergence of quantum dot technology and high power LEDs has reduced LED usage volume in display backlight products.
2. Automotive lighting market to hold high growth potential
Another market sector is the automotive lighting sector, which continues to hold high growth potential. Automotive headlamps are very lucrative, so even if interior automotive lighting product prices decline, manufacturers can still profit. No matter what circumstances, LED manufacturers will need to keep their eyes open for potential business opportunities.