Shenzhen Ousida Technology Co., Ltd , https://en.osdvape.com
Since 2016, the entire LED industry—from upstream to downstream—has entered a phase of integration. According to Dr. Zhang Xiaofei, Chairman of Gaogong LED, the industry saw deep integration in 2017 and is expected to continue this trend until around 2019, when annual integration will likely be complete.
In the midstream segment, the overall LED packaging market expanded in 2017, but it showed clear polarization. The top six companies captured about 20% of the total market share, with the industry continuing to concentrate among leading players. However, the market was still not highly concentrated, reflecting a 20/80 imbalance where a small portion of companies controlled a large share.
As the performance of packaging equipment improved and prices stabilized, the pace of technological upgrades accelerated. Leading packaging companies now offer more comprehensive product lines, increased market concentration, and better return on investment. Meanwhile, the scale of major domestic packaging firms continued to grow.
According to Gaogong LED's observations, while many packaging manufacturers expanded their production capacity and revenue grew, gross profit margins declined. Li Jundong, General Manager of Hongli Zhihui, explained that this decline is part of an inevitable market trend driven by falling prices. However, he noted that Hongli Zhihui has managed to mitigate the impact due to its broad customer base and strategic focus on internal improvements and product optimization.
**Breaking Through Stability and Heat Resistance: Creating Car-Level LED Products**
With the LED market becoming increasingly competitive, many packaging manufacturers are shifting focus toward niche segments to differentiate themselves and achieve higher profit margins. New applications such as automotive lighting, landscape lighting, LED filament lamps, plant lighting, non-visible LEDs, UV LEDs, infrared LEDs, and LED modules have emerged as promising areas.
Hongli Zhihui, a leading Chinese packaging manufacturer, has been proactive in exploring these new markets. It has made significant progress in automotive lighting, filament lamps, and UV LEDs, achieving notable success.
For automotive lighting, the standards are extremely high, particularly in terms of stability and heat resistance. As Li Jundong explained, stability ensures that product specifications, brightness, and models remain consistent over time, which is crucial for automotive parts that may be used for years after production. Heat resistance is even stricter, with different standards compared to general lighting.
To meet these requirements, Hongli Zhihui has introduced international car-level standards and R&D practices, building a full-scale automotive packaging system. It also invested in specialized equipment and established dedicated workshops to ensure compliance with vehicle regulations.
Currently, Hongli Zhihui offers a range of automotive lighting products, including interior lights, exterior signal lights, daytime running lights, headlights, and brake lights. With its own car modules and lamp factories, the company has a deep understanding of lighting requirements and can provide tailored services to customers.
**Homeopathic Approach: Strategic Layout in Filament Lamps**
In addition to automotive lighting, LED filament lamps became a key focus for Hongli Zhihui in 2017. The company has successfully launched filament products at various professional lighting exhibitions, earning strong market recognition.
Li Jundong believes that LED filament lamps have a bright future in specific applications, though they may not become mainstream unless cost becomes more balanced. Despite challenges like high costs, complex production processes, and difficult heat dissipation, Hongli Zhihui has taken steps to optimize its manufacturing approach.
By adjusting the basic width and arranging chips for uniform heat distribution, the company has improved efficiency and reliability. Hongli Zhihui’s filament lamps are known for high light efficiency, long lifespan, minimal heat generation, no dark spots, no glare, and excellent color rendering.
The company has already developed a range of filament products, including full-color, high-current, inverted, in-line, flexible, and integrated filaments, which are now being used in stage lighting and filament lamps.
**Consolidating Mainstream Products and Expanding into New Markets**
In 2018, large packaging companies focused on upgrading both high- and low-end products, reducing reliance on imported components, and expanding into foreign markets. Smaller companies, on the other hand, prioritized quality over scale, focusing on specialized areas such as high-efficiency plant lighting or high-reliability automotive lighting.
Hongli Zhihui continues to strengthen its position in mainstream products while actively exploring emerging markets. The company has never stopped innovating and is currently working on Mini LED, Micro LED, and laser packaging technologies.
As Li Jundong concluded, Hongli Zhihui has achieved good mass production and revenue in areas like LED filament lamps, CSP, and UV LEDs. The company remains committed to exploring the future of next-generation LED technologies.
