According to market research firm iSuppli, China's LED market will double from 2009 to 2014 due to government subsidies and demand for new applications, such as LCD TV backlighting and general lighting.
By 2014, China's LED revenue will reach 7.1 billion US dollars, compared with 3.4 billion US dollars in 2009, and the compound annual growth rate (CAGR) is 12.8%. In particular, the ultra-high-brightness LED market will grow rapidly. By 2014, the market will reach $1.8 billion, up from $686 million in 2010.
Chinese local government subsidies are at least 70% of their cost, or an average of $1.5 million, for the purchase of MOCVD equipment.
According to iSuppli's optimistic estimates, from 2010 to 2012, such incentives from the government will inspire $3.5 billion in spending, mainly for LED-related production equipment for Chinese LED suppliers. Instead, this portion of spending will help Chinese LED suppliers overcome the technical barriers they face today, including intellectual property protection awareness, production equipment and LED epitaxial wafers.
LED application market diversification
The Chinese LED market covers a wide range of applications, including LED displays, street lighting, general lighting, traffic lights, flash and digital cameras (DSC) for cell phone keypads, and large sizes for LCD TVs, notebooks and other display applications. LCD panel. In 2014, China's LCD backlight market will show strong growth, reaching 1.2 billion US dollars, compared with 468 million US dollars in 2010.
iSuppli estimates that in 2010, the general lighting market will account for 18.4% of the total LED market share.
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