Apr 22, 2016: A report released by TrendForce said that the global LED market had witness its first YOY decline in 2015. A number of major shifts took place in the global LED package revenue ranking for 2015 owing to heated competition among leading LED companies. In a bid to undercut one another, most of the major players faced reduced incomes in 2015. In addition, owing to US dollar’s appreciation, the revenues of some companies fell even further.
In spite of all such challenges, Nichia managed to lead the LED global market with Osram Opto and Lumileds following closely. On the other hand, most of the South Korean manufacturers including Samsung LED faced revenue declines owing to heated price war in LED backlight sector.
Branded lighting sellers continually pressured their LED dealers to reduce costs last year. Well-known LED lighting manufacturers like Cree witnessed a sharp decline in its package revenue owing to reduced prices of products and trailing behind for orders.MLS and Everlight also saw a steep decline due to lower prices in spite of having cost benefits.
Automotive LED market
Owing to high entry barriers and comparatively less challenges, the automotive LED market did not suffer to that extent. The performance of the top 3 manufacturers ( Nichia, Osram Opto and Lumileds) was extremely good and at present these giants control around 70% of the global automotive LED market.
In this segment, customers focus more on optical design, supply chain management and product reliability rather than price. Hence, many manufacturers look upon the automotive LED application as the new stepping stone for expanding its reach.
Most of the South Korean manufacturers faced sharp decline since their group companies paid attention to OLED rather than backlight applications.
One of the major factors behind the sharp decline in revenues of South Korean manufacturers in 2015 was the shrinking LED backlight market. Additionally, group companies such as LG and Samsung went on to promote OLED panels while ignoring growth of their LED products. To top it, LG and Samsung opted to outsource the manufacturing of some LED products that will be substitutes by their OLED solutions to competing LED dealers.