In 2015, despite the rising demand for LED lighting and the replacement of traditional lighting applications, the oversupply and extremely unregulated commercial competition in the industry caused LED lamps to fall by 30-50%, and manufacturers faced losses and exited the market. For 2016, I believe that the industry development direction is as follows: 1. The LED industry will slow down in the future. Due to the oversupply of the LED industry, the average price has fallen sharply. As the industry's cost continues to decrease and the industry's heat is rational, it is expected that the industry's growth will stabilize and slow down. 2. LED device prices and product declines have narrowed. In 2015, wafer and package prices and product prices showed a dip in the market, and the market price was not standardized, resulting in many LED manufacturers facing a loss. It can be expected that more and more manufacturers will withdraw from the market in the future. 3. Chinese LED manufacturers launched domestic and overseas mergers and acquisitions and transformation. Chinese listed companies rely on the valuation of A-shares to raise overseas mergers and acquisitions through stock market fundraising and government funding. In addition, more and more LED manufacturers are beginning to seek transformation, and some Chinese LED manufacturers have begun to enter other fields through mergers and acquisitions, hoping to get rid of the Red Sea market. 4, LED business closure tide reappears. Due to the continuous decline in prices in 2015, industry competition continues to deteriorate, and many small and medium-sized LED companies are facing tremendous loss pressures and entering a vicious circle of cash flow breaks. In 2016, the industry will reproduce the tide of small business closures; 5. The fields of agricultural lighting and health lighting are growing rapidly. Due to the fierce competition in white LED prices, LED manufacturers hope to find some new special applications in order to increase profits. With the continuous maturity of red light technology, agricultural lighting, health lighting and other fields will usher in a rapid development opportunity; 6, smart lighting has a bright future but the process is tortuous. At present, most of the additional functions of intelligent lighting still stay in the remote control, color and color temperature changes, but most consumers do not seem to be willing to pay an extra premium for these functions, so smart lighting is difficult to achieve in a short time Development; 7, optical communications will be more and more concerned by manufacturers. The huge bandwidth advantage of visible light communication and the huge market space, it is expected that the development of optical communication will be more and more concerned, but due to the large investment, the technology of chip and device still has some difficulty, and the possibility of immediate explosion is still relatively small.
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