LED lighting chip price increase 3~5%, global output is expected to reach 2.9 billion dollars, the market demand is strong

With the recovery of the global economy and the control of the epidemic, LED lighting market demand is gradually picking up. According to the market research institute, the price of LED lighting chips has recently increased by 3 to 5%, which is expected to drive the annual output of LED lighting chips to $2.9 billion. This growth is mainly due to the increase in market demand, technological progress and government policy support, and other multiple factors.

I.The market demand is strong, driving up the price of LED lighting chip

In recent years, the global lighting market has gradually transformed to LED lighting, which has attracted wide attention for its characteristics of high efficiency, energy saving, environmental protection and no pollution. With increasing global environmental awareness, many countries have imposed restrictions on traditional lighting devices such as incandescent and fluorescent lamps, further boosting the growth of the LED lighting market. In addition, new infrastructure construction, smart home, commercial lighting and other areas of the growing demand for LED lighting is also driving the demand growth of LED lighting chips.

II.Technological progress reduces costs and improves product competitiveness

LED lighting chip technology continues to progress, production process and equipment has been improved, so that the performance of LED lighting chip has been improved, the cost has been reduced. This makes LED lighting products gradually close to traditional lighting products in price, further improving the market competitiveness. In addition, the advantages of LED lighting chip products in light efficiency, brightness, life and other aspects also make it enjoy a higher brand recognition in the market, bringing more development opportunities for enterprises.

III.National policies support and promote industrial development

In order to encourage the development of LED lighting industry, governments have introduced supporting policies. For example, the Chinese government has implemented a series of fiscal subsidies, tax incentives and other policies to reduce production costs and marketing expenses of enterprises and increase the market share of LED lighting products. In addition, the government has also increased the scientific research investment in the LED lighting industry, supporting enterprises to carry out technology research and development and innovation, and improve the core competitiveness of products. These policies have played an active role in promoting the development of the LED lighting chip market.

IV.Industrial chain cooperation accelerates industrial upgrading

With the continuous expansion of the LED lighting market, the cooperation between the upstream and downstream enterprises of the LED lighting chip industry chain is also increasingly close. Through technical cooperation with upstream chip enterprises, downstream application enterprises can promote product performance and meet the market demand for high-performance LED lighting products. At the same time, upstream chip enterprises can optimize the production process and reduce the production cost by connecting with the needs of downstream application enterprises. This industrial chain cooperation is conducive to the rapid upgrading of the entire industry and further enhance the competitiveness of the LED lighting chip market.

V.Broad market prospects and accelerated global distribution

At present, the global LED lighting market is in a stage of rapid development, major enterprises have increased investment efforts, seeking global layout. On the one hand, enterprises are expanding production capacity and market share globally through mergers and acquisitions, technical cooperation and other means. On the other hand, enterprises increase investment in research and development to develop products with core competitiveness to meet the needs of different markets. With the increasing penetration rate of LED lighting chips, the LED lighting market is expected to maintain steady growth in the next few years.