According to market research on my country's glue industry, the rapid rise of the LED downstream lighting application market has ushered in a new development opportunity for the glue industry. Especially after 2011, new packaging processes represented by integrated high-power packaging and COB high-power packaging have been gradually recognized by the market, and the market demand for high-fold silicone products has grown rapidly. Here is an analysis of the current market situation of my country's glue industry in 2015.
The further decline in LED lighting costs has brought about a new round of explosion in the domestic LED glue market. "Lighting product prices have fallen sharply, and midstream packaging companies are constantly looking for ways to reduce costs, and domestic auxiliary materials have undoubtedly become the company's priority for reducing costs." said a person in charge of a packaging company.
The glue industry market survey and analysis report shows that at the same time, domestic glue has also achieved leapfrog progress in the rapid development in recent years. Starting from low-tech products with low technical content, now domestic manufacturers such as Huizhou Jieguo, Beijing Kangmeite and Evergrande New Materials have occupied a certain market share in the high-end packaging silicone field.
LED glue pattern is overturned
Since 2014, the LED industry has begun to pick up, and the substantial growth in the lighting industry has made the LED glue industry also popular. For a long time, the glue market has basically formed a tripartite structure, consisting of overseas companies represented by Dow Corning, Taiwanese companies represented by Lite-On, and domestic glue companies. Dow Corning and Lite-On, which have long dominated China's LED glue market, will usher in a "declaration of war" from local Chinese companies.
The current market situation of 8:2 (international: domestic) as the industry said no longer exists. On the contrary, the research and development level of domestic glue technology is gradually approaching the international first-class level.
"Declaration of war" giant domestic glue breaks through
According to industry statistics, starting from the second half of 2012, some Taiwanese packaging manufacturers and large-scale domestic LED lighting companies began to try to use domestic LED glue, which added some confidence to domestic LED glue companies. As of June 2012, in the domestic low-end LED packaging glue market, the share of imported products has dropped to 40% from the same period in 2010, and has shown a continued downward trend.
Especially with the further decline in LED lighting costs, the domestic LED glue market will also usher in a new round of explosion. Since 2012, lighting products have been engaged in a "price war". Enterprises have been seeking cost reduction rules, and domestic auxiliary materials have undoubtedly become the inevitable choice for enterprises to reduce costs.
The sharp decline in LED prices is mainly due to the rapid decline in lighting costs, which has led to price cuts in upstream raw materials, and on the other hand, the improvement of glue research and development technology in the LED industry. The gap between the technical level of international giants and some large domestic glue companies is gradually narrowing. In addition, domestic glue has considerable price advantages. On the other hand, with the support of national policies and the combination of multiple factors, domestic glue will gradually replace international giants. This market trend also fulfills what Dr. Chen of Deppon Technology said.
"Brand War" Begins, LED Glue Market Pattern Becomes Clear
LED downstream terminal manufacturers know that brand and channel are the key to victory. For glue companies, brand effect has increasingly become the key to their foothold in the market. In the glue industry with a huge enterprise base, the market structure is beginning to become clearer.
The recovery of the LED industry in 2014, especially the explosion of demand in the downstream application market, may give midstream packaging and upstream epitaxial chip companies that were plagued by overcapacity in 2014 a short respite. At the same time, the rapid development of downstream LED lighting has put forward more requirements for long- and mid-stream epitaxial chips and packaging, with excellent performance, higher light efficiency, and lower costs. All of this is testing the R&D and large-scale manufacturing capabilities of glue companies. Future market competition will focus on LED terminal lighting applications, but what is more important is to form a response and cooperation between the upper, middle and lower reaches of the industry chain, so that cost-effective products from the upper and middle reaches can be quickly promoted to LED lighting companies and accepted by end market consumers.
ANNA