LEDinside Shanghai Market Analysis Seminar Delve into Future LED Industry Trends

LEDinside Chief Analyst Market Analysis Seminar opened in Shanghai Parkyard Hotel on March 19, 2014. Global LED bulb demand will grow 86%, while LED tubes will be up 89%, anticipated LEDinside analysts. As sapphire substrate applications diversify, supply and demand can reach an equilibrium by 2014.  

Important points touched upon during the seminar:

Global demand for LED bulb and tube will grow by 86% and 89% respectively in 2014

Rapid decline in the price of retrofit lamps triggered the global LED lamp replacing tide. “LED bulbs and tubes market have highest demand, due to their strong replaceability and consumers' wide acceptance”, said LEDinside analyst Terri Wang. Compared to 2013, the global LED bulb and tube demand volume will grow 86% and 89% respectively in 2014.

As for global LED bulb market retail prices, LEDinside’s statistics showed that in January 2014, the global ASP of 40W equiv. LED bulbs fell about 21% year on year (YoY), and prices of 60W equiv. LED bulbs fell about 28% YoY.  The rapid price decline of top brand products accelerated specification and integration of regional markets. Despite price volatility resulting from new high-performance products and product sales promotion, the bulb ASPs in various regions showed a steadily decreasing trend. As  prices declined, the cost performance of products in various regions also gradually improved. In addition, LED standards and policies have initiated replacement tenders in various regions which also have served a catalytic role in the development of global LED lighting market.

The supply and demand in sapphire substrate industry can reach equilibrium throughout 2014

Benefiting from high lighting market demands, LED industry performed well. Moreover sapphire substrates continue to be widely used in smart phones, including camera lens and home button, all of which spur on sapphire substrate demand growth. It is expected that sapphire substrate supply and demand  will reach a balance in 2014, said LEDinside Assistant Manager Joanne Wu.

Increased sapphire substrate non-LED applications. It is expected that in 2014 the proportion of non-LED application will grow 33%. Among non-LED applications, the demand for sapphire substrate on smart phone applications include camera lens and home buttons have expanded annually. If iPhone 6 and iWatch adopt sapphire cover glass at the end of 2014, sapphire substrate demand growth is expected to leapfrog.

In addition, sapphire substrate market prices has gradually risen from the bottom, and 2-inch sapphire ingot market benefited from LED and non-LED market demand, so the price has started to rebound in March to US$4.2 - 4.5. The 4-inch ingot market also significantly benefited from LED market demand, as  prices reached US$16 -18. However, 6-inch ingot market was affected by limited demands from LED manufacturers and the original SoS market transfer to SOI technology, consequently, prices remained flat.