China Display Parts & Components Industry

An Expert's View about Major Exports in China

Posted on: 26 Mar 2010

Rising demand for energy-efficient, environment-friendly lighting products is forecast to fuel growth in China’s display parts and components industry. The country’s LED output has been expanding by 30 percent in the past five years, and suppliers are confident the momentum will continue despite the challenges posed by the current economic climate.


Makers are broadening their product and application range in preparation for increased orders, there by offering the entire scope of LED components, displays, panels and modules. The LED selection from China now consists of SMD and high-power LEDs, and LCD and CCFL backlights and sidelights. LED displays and LCD panels are also available, as are modules in both types. Many companies offer CRTs, OLEDs and 7-segment LEDs, ELs and plasma panels as well.


Among these, LED displays are the strongest. China is currently the largest manufacturing hub for the line, without put this year estimated to rise by 39 percent.


LCD panel makers are maximizing opportunities in the TN/STN and TFT sectors as large foreign companies continue to reduce production. Many are eyeing the home, automotive and industrial segments.


The global market for high-power LEDs is projected to exceed $1.9billion by 2011, and China is expected to account for at least a fifth of the world’s supply, as it has in recent years. In the SMD LED segment, makers are exploring India, Japan and certain segments in Europe and the US even as they step up domestic marketing strategies.


Superflux LED manufacturers are counting on the demand upturn for energy-efficient lighting to buttress the line. Output is projected to exceed the 7 billion units produced in 2008.


LED lamp and cluster lightmakers are gearing up for growth as more countries shift from traditional incandescent lamps to LED-based lighting technology.


The following are some of the keytrends observed in China’s display parts and components industry:

• Prices are expected to decrease in coming months as companies boost competitiveness. Some suppliers will raise quotes to recoup losses from slowing overseas sales.

• Export revenue is forecast to continue rising despite lower demand in key markets such as the US. The upswing will be fueled by the growing awareness about lowcost, environment-friendly lighting technologies.

• Product development is focused on displays and modules with a wider viewing angle, improved resolution and faster response time. Makers will also release LED components with enhanced brightness and contrast.

• Companies are grappling with IPR issues and the lack of industry standards. The continued support of industry associations and the central government, however, is helping them address these problems.

• Many makers are increasing manufacturing efficiency and speeding up time to market. To cushion the impact of fluctuating exchange rates,more suppliers are locking in the conversion value when orders are placed.



The above is extracted from the Executive Summary of China Sourcing Report: Display Parts & Components


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Posted: 26 March 2010

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