That’s according to a report from Trendforce, with analyst Roger Chu saying: “Growing numbers of manufacturers have incurred heavy losses and are exiting the market.”
There is still strong demand for high brightness LEDs, but Chu said the value of the market is up by only two percent this year, amounting to $14.52 billion.
He estimates that it will be worth $14.95 billion in 2016, a rise of only three percent, year on year.
LED based lights are under “immense downward price pressure”.
However, Chu expects the big price declines to moderate next year. This year, the cost of sales to make an LED light bulb, for example, is the same as its cost.
He said that Chinese LED manufacturers are likely to make serious acquisitions, picking up international LED patents and lighting brands.
As prices continue to fall, Chu said buying an LED is close to the cost of “traditional” energy saving bulbs.