Through the four stages of the LED manufacturing value chain, the application of chemical materials includes: chip manufacturing, packaging, module manufacturing and luminaire assembly. Therefore, when manufacturers or research institutions predict changes in the growth trend of the LED industry, they can first see some early trends through the growth pattern of LED chemical materials revenue. "2016 China LED Substrate Materials Research Report" mentioned that chemical products at every stage of the LED lamp production process play an important role in the future success of the LED industry. Because the LED industry has almost a few companies supplying chemical materials, and material suppliers are unable to provide the overall market demand, the key to supporting the growth of the overall LED industry is the key. In the LED raw material market, the market size in 2013 reached US$5.01 billion. By 2018, it will reach US$11.71 billion, which is twice the market size between the five years. Through the four stages of the LED manufacturing value chain, the application of chemical materials includes: chip manufacturing, packaging, module manufacturing and luminaire assembly. Therefore, when manufacturers or research institutions predict changes in the growth trend of the LED industry, they can first see some early trends through the growth pattern of LED chemical materials revenue. According to the "2016 China LED Substrate Materials Research Report", historically, the demand for LEDs in electronic applications (such as display backlights) has driven the growth in demand for LED chemicals. But now that this market is relatively mature, the demand for general lighting will be the center of the next wave of chemistry and material growth. In the four stages of LED manufacturing, the value chain for the greatest demand for chemical and materials products is at the final stage, which is the assembly of the lamps. Analysis of the global LED material market size and development prospects Therefore, when the price of LEDs is declining in all stages of the value chain, the stage with the greatest price pressure is also the stage of assembly of lamps. Therefore, whether chemical and material manufacturers can provide innovative products to reduce the cost of LED manufacturers is the key. In addition, all players in the market must use LEDs to provide space design that is different from traditional lighting to create opportunities. After all, LED lighting is different from traditional lighting, and LED light sources do not need to be designed around a replaceable light bulb. The potential for innovative design and material selection will lead to business opportunities that are different from previous lighting technologies.
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