According to the research report of the High-tech LED Industry Research Institute (GLII), since 2010, due to the rapid growth of the domestic LED packaging market, the demand for LED packaging glue market has also maintained rapid growth. It is expected that the domestic LED packaging glue market demand in the next two years. The volume growth will exceed 60%.
Main LED package glue data description:
Data range: Only select LED package glue series glues sold in mainland China: Mainly applicable to LAMP series package, electronic digital, SMD TOP series package, high-power package product packaging glue, but does not contain sealing glue for application products.
Time: January 2011 - June 2012
Overall market demand is growing steadily
According to GLII statistics, the domestic LED packaging glue market demand for the first half of 2011 was 12,700 tons. In the first half of 2012, the domestic LED packaging glue market demand was close to 19,800 tons, a year-on-year increase of 56%.
Figure 1 China LED package glue demand and changes in the first half of 2008-2012 
Source: Gaogong LED Industry Research Institute (GLII)
In 2008, the demand for emerging markets such as SMD TOP series and imitation lumens and high-power products grew rapidly, especially the various events such as the Olympic Games, World Expo, and Universiade, which drove the rapid growth of demand for LED application products. The demand for glue has increased significantly.
In 2010 and 2011, the new packaging technology represented by integrated high-power packaging and COB high-power packaging was gradually recognized by the market. The market demand for products developed rapidly, and the rapid application of the downstream lighting application market was gradually started. China's domestic LED packaging glue has once again ushered in a rapid growth period of market demand.
LED silicone demand is stable and declining
According to the GLII research report, since 2008, the rapid growth of LED silica market demand has become another driving force for the growth of the domestic LED packaging glue market. The data shows that the demand for domestic LED silica gel reached 5,970 tons in the first half of 2011, a year-on-year increase of 75%; in the first half of 2012, the domestic LED silica gel demand reached 10,300 tons, a year-on-year increase of 73%.
At the same time, domestic LED silica gel demand growth rate showed signs of slowing in the first half of 2010 and the first half of 2012, respectively. The main reasons are as follows:
In the first half of 2010, the growth of LED silica gel demand slowed down, which was mainly related to the large-scale use of epoxy resin in LED indoor display light source. Prior to this, LED indoor display light sources were all packaged in silicone. In 2010, LED indoor display light sources were mainly encapsulated in epoxy or silicone. The market for integrated packaging and COB packaging was limited, which directly led to a significant drop in demand for the silicone market.
Figure 2 China LED silicone demand and changes in the first half of 2008-2012
Source: Gaogong LED Industry Research Institute (GLII)
Data Description: The demand for silica gel includes white silica gel and encapsulated silica gel.
In the first half of 2012, the domestic LED outdoor display light source market grew significantly, among which the 546 and 346 series increased significantly. The 5050 and other epoxy resin package series began to mass-produce, resulting in a slight market share in the first half of 2012. Lower than the first half of 2011.
GLII believes that the average growth of LED silica gel demand will increase by more than 70% in the next few years. However, with the mass supply of silicone resin, epoxy resin and new glue, and the rapid improvement of technology, the proportion of the original silica gel market will show a downward trend.
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