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According to statistics from the High-tech LED Industry Research Institute (GLII), in 2013, domestic MOCVD reached 1017 units, an increase of 11% year-on-year. Considering that there is still a lot of room for release of existing capacity and the market is becoming more rational, GLII expects that the MOCVD equipment in China's LED market will show a smooth and stable growth trend in the future.
On February 11, Jeffrey Pina, senior director of global marketing at Veeco, said at the press conference in Taiwan that the growing LED lighting will boost the market demand for MOCVD.
In the past few years, over the past few years, there have been overcapacity in the market, such as MOCVD, MBE and data storage, which has slowed the shipment of machine equipment in the past year or two.
Looking ahead, there will be more opportunities for growth. These opportunities come from MOCVD-related services, power components, MBE, EUV (far ultraviolet ion beam etching), etc., which are all devices that Veeco can provide. Especially in terms of LED lighting, it is recognized by the market as the kinetic energy that can bring the greatest growth. With the rapid increase in demand for LED lighting, the oversupply of production capacity will reverse between 2014 and 2015.
Jeffrey said that the LED lighting market can achieve a compound annual growth rate of 35% between 2010 and 2020. The first wave starts with mobile phones, and the second wave is LED TV backlight modules. However, these markets have gradually become saturated, and the next wave of market growth is expected to LED lighting. Because LED lighting is not only taking off, the government and the industry continue to support this market. With the current global LED lighting proportion accounting for only 5% of the overall lighting market, it also gives us more confidence in the future growth.
Jeffrey said that observing the market supply and demand situation of MOCVD for LED lighting and TV, due to the significant investment in China's LED industry in recent years, coupled with government policies to subsidize the backlight industry, etc., in the middle of 2011, the market has begun to appear oversupply. The situation is that there is an imbalance between supply and demand.
But the dark period of oversupply has passed, both from the client's message and Wall Street analysts believe that the LED industry will begin to enter a leap. So from 2014 to 2015, we will see a higher demand for MOCVD in the industry, which is mainly from the commercial lighting market. Next, it is necessary to observe the lighting needs of the residential area. Once the residential area has begun to adopt LED lighting, the growth will be more accelerated.
At present, many countries in Europe and the United States have successively banned incandescent light bulbs that consume large amounts of electricity and are easily polluted, which will lead to further expansion of the use of LED lights in residential areas in the future. Even if the lighting needs of residential areas are not as expected, the large demand in the commercial area can support the overall LED lighting market. 
Veeco: LED lighting pushes up MOCVD demand overcapacity or will reverse
GLII Comments: Benefiting from the rapid development of downstream lighting, China's LED upstream overcapacity problem has eased, but the reversal of supply and demand is still far away. The statistics of the High-tech LED Industry Research Institute (GLII) show that in 2013, China's MOCVD operating rate and capacity utilization rate increased to about 70% and 52% respectively.