TrendForce: 2021 Lighting LED industry value growth to hit approx. 3.43%

TrendForce's LED Global Supply Chain Database report indicated an overall upward trend of prices for LED products, rising by 0.3~2.3% in Q2 this year. This is mainly due to the full recovery of LED lighting market demand since the first quarter, and this high is slated to continue into Q2.

On the other hand, the structural shortage of upstream LED chips caused by the epidemic is still unresolved. To avoid a worsening shortage situation, end-product suppliers have increased their stocking efforts. Estimates indicate the current surge will become the main driver of this year's LED lighting industry value to USD$6.709 billion, a yearly growth rate of 3.43%.

TrendForce further pointed out that benefiting from the rapid growth in demand for human-centric lighting, smart lighting, plant lighting and special lighting (such as nuclear power plant lighting, pharmaceutical-use, metal processing industry lighting). Revenue for major lighting-grade LED packaging manufacturers, include Samsung LED and ams Semiconductor, OSRAM, CREE LED, Lumileds, Seoul Semiconductor, MLS Co., LIGHTNING optoelectronic Co., Ltd, etc., has grown substantially since the first quarter. The momentum is expected to continue into Q2.

This wave of LED packaging products saw growth in specific categories: indoor medium and low-power lighting LED products (under 1 watt, excluding 1 watt) for home and commercial use (2835 LED, 3030 LED, and 5630 LED) saw a quarterly increase of 0.3~ 2.3%, and high-power outdoor lighting LED products (above 1 watt) for outdoor and industrial use, such as ceramic substrate LEDs, 7070 LEDs, rose 1.3 to 1.8% in terms of quarterly results.

The current wave of price increases is largely due to the impact of the pandemic last year, prompted by rising prices for semiconductors, related metal raw materials. Therefore, some lighting LED manufacturers caught between the pressure from upstream price increases, leading to rising prices of lighting LED products that were previously priced too low.

Overall, despite the pressure from rising upstream raw materials prices, lighting LED manufacturers are still actively improving product performance, including luminous efficacy and color saturation. Suppliers have also successfully launched products that meet the new needs of the post-epidemic market to ensure market share and competitiveness. For instance, OSRAM and Lumileds launched lighting LED products were created to improve the architectural atmosphere, while CREE LED products were better suited for indoor planting and plant factories.