LED industry has experienced the capacity structure imbalance in the upstream and downstream of the industrial chain caused by cluster investment, the capacity scale and market demand scale seriously mismatch, and the expansion of market demand is not as expected, resulting in stage of overcapacity. In order to seize the market, enterprises have a price war, small and medium-sized enterprises are struggling. Although the problems continue, but after the baptism of the market, LED industry is consolidating the foundation, will usher in a more healthy and rapid development.

In terms of market trends, it can be predicted that in the next five to ten years, the LED market will mainly be indicator, display, backlight and lighting, among which the lighting market is the largest and the ultimate LED market. With the percentage of incandescent light usage decreasing year by year, the future LED industry market is mainly based on commercial lighting and mass consumption, and indoor lighting will be the last big LED application market to start.

It is better for companies to compete better. The competition of enterprises is mainly reflected in the two aspects of technology and cost, through the market competition of product performance and price ratio, the survival of the fittest. In order to obtain technical advantages, enterprises compete to increase investment in research and development, in order to continuously improve the technical performance of LED products, adapt to and meet the market demand; Reduce cost through continuous improvement of production process and production management to achieve cost competitive advantage .