Guangzhou Huizhan New Material Technology Co., Ltd. (stock code: 301683.SZ) successfully listed on the ChiNext on April 1, 2026. Guangzhou Huizhan New Material Technology Co., Ltd. is a platform-based functional coating material enterprise focusing on the field of polymer materials, driven by independent research and development. The company takes molecular structure design as its technical starting point, deeply cultivates key technology research and industrial application of core functional resins, constructs two major technical platforms for functional resins and functional coating materials, and has formed an '1+1+N' industrial layout system targeting four downstream application scenarios: home appliances, packaging, new energy, and electronics. Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan') warmly congratulates Guangzhou Huizhan New Material Technology Co., Ltd. on its successful listing.
Guangzhou Huizhan New Materials Technology Co., Ltd. (hereinafter referred to as 'Huizhan New Materials') successfully went public on April 1, 2026, issuing a total of 15,779,100 new shares at an issue price of 78.38 yuan per share.
PART/1
Investment highlights
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Huizhan New Materials takes 'functional resin + coating material' as its dual core platform, aiming to capture the domestic substitution market for high-end materials. It leads in segmented market share and has the ability to extend products across industries, benefiting from the trend of industry chain autonomy and control.
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Huizhan New Materials has a downstream coverage across multiple high-growth sectors, with stable leading customers. The proportion of new energy and electronic materials business has increased, driving the optimization of revenue structure and accelerated growth;
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Huizhan New Materials has strong R&D capabilities, a rich patent reserve, and significant technological driving advantages. It possesses the ability for continuous development and industrialization of new materials;
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Huiyuan New Materials continues to improve its gross profit margin, with double-digit revenue and net profit growth in 2025, highlighting its profitability and performance growth potential;
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Hui'g New Materials has increased investment in expansion and R&D, strengthening its production capacity and technical barriers, opening up medium- and long-term growth prospects. With standardized governance and team alignment, shareholder returns are promising;
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Huizhan New Materials is deploying on environmental protection coating materials, aligning with the industry's green development trend and offering broad growth potential.
Frost & Sullivan has long been focusing on the global and Chinese new materials industry, publishing a large number of research reports that are widely cited in the prospectuses of leading ChiNext-listed companies, helping clients accelerate their growth.
PART/ 2
Overview of China's Light Industry Coating Industry
Light industrial coatings are the largest sub-market under industrial coatings, covering a wide range of application areas including battery coatings, daily electrical appliance coatings, packaging coatings, coil coatings, and other fields such as plastics and wood coatings. In these areas, light industrial coatings play an important role in protection, beautification, and functional improvement. For example, in the battery field, coatings are used not only for shell protection but also as current collector coating materials, which can reduce the contact resistance between electrodes and current collectors, enhancing the battery's conductivity, charging and discharging performance, and cycle life; in the household appliance field, coatings have both surface decorative protection and thermal conductivity and heat dissipation functions, ensuring efficient operation of equipment; in the packaging field, coatings can be used to enhance the aesthetics, waterproof performance, and durability of packaging materials; in the coil coating field, coatings can be used for surface coating of metal coils, improving their corrosion resistance and aesthetics; and in the plastics and wood coatings field, coatings can be used for surface painting of plastic products and wood products, increasing their durability and decorative effect. Therefore, the application of light industrial coatings in multiple fields makes it a diversified and broad market.
The China light industry coating industry achieved significant growth between 2020 and 2024, with the market size increasing from RMB 90.11 billion in 2020 to RMB 118.05 billion in 2024, achieving a compound annual growth rate of 7.0%. Looking ahead, from 2025 to 2029, the market size of China's light industry coating industry is expected to increase from RMB 127.87 billion to RMB 206.32 billion, with an expected compound annual growth rate of 12.7%. Although the growth rate of China's light industry coating market has been relatively stable in recent years, with the continuous recovery of the Chinese economy and the easing of geopolitical conflicts, it is expected that battery coatings will be widely used in the fields of new energy vehicles and high-performance batteries; electrical coatings and packaging coatings will continue to grow driven by consumer electronics and packaging demand; and coil coatings will play an important role in urban construction and infrastructure upgrading. These factors will drive further growth in the light industry coating market.
Source: Frost & Sullivan report
PART/3
Development Trends and Driving Forces of China's Light Industry Coating Industry
● Environmental protection and sustainable development drive the development of the light industrial coating industry
In the current era where the world is jointly addressing environmental challenges and actively practicing sustainable development concepts, the Chinese light industrial coating market is undergoing a profound transformation driven by environmental protection and sustainability requirements. The Chinese government, with its firm determination to protect the environment, has set clear sailing directions for the light industrial coating industry through its "carbon neutrality" strategic goal, which is to fully move towards the production and research and development of more environmentally friendly and low-carbon products. The "Implementation Plan for the Innovative Development of the Fine Chemical Industry (2024 - 2027)" has been released with great emphasis, further refining the development path of the coating industry. At the level of industrial structure adjustment, it is clearly required to cut down on the production capacity of solvent-based coatings with high VOCs content and vigorously develop water-based, powder-based, and other non (low) VOCs coatings to promote the green transformation of the industry and reshape the market competition pattern. The product application direction is precisely focused on strategic emerging fields such as large aircraft, high-speed rail, and new energy. By developing high-performance coatings, the added value of products is enhanced to provide solid support for the development of national strategic industries. In the field of technological innovation, by leveraging cutting-edge technologies such as integrated painting and nanotechnology, integrating new materials, comprehensively improving product quality and green environmental attributes, and enhancing the competitiveness of Chinese light industrial coatings in the global market. From the perspective of expanding the industrial chain, enterprises are encouraged to carry out customized services, build professional painting teams, extend the industrial chain, increase the value of the entire product lifecycle, and stabilize their position in the market. It is worth noting that with the continuous strong support of the Chinese government for related industries such as new energy vehicles, household appliances, and real estate, light industrial coating products are expected to welcome new growth opportunities in many downstream industries and develop a second growth curve.
The process of domestic substitution in China's light industry coatings sector is accelerating at an unprecedented pace, benefiting from a combination of various factors. Firstly, Chinese local coating enterprises have made remarkable achievements in technology research and development as well as market expansion, with their products gradually approaching or even reaching international advanced levels in terms of quality and performance. These enterprises continuously enhance their R&D capabilities, combined with a deep understanding of the local market, giving them unique advantages in meeting domestic consumer needs. Secondly, the Chinese government's support policies for the local industry are also being strengthened, ranging from tax incentives, financial support to guidance on technological innovation and environmental protection requirements, all of which have greatly promoted the development of domestic coating enterprises. With the proposal and implementation of the 'dual carbon' goal, environmentally friendly and low-carbon coating products have received more attention, which is precisely the direction that many Chinese coating enterprises have focused on R&D in recent years, thus further accelerating the pace of domestic substitution. Additionally, supply chain restructuring under globalization has also provided opportunities for domestic substitution. In recent years, affected by factors such as global geopolitical conflicts, China's economic development has faced certain challenges. In this context, the Chinese government is actively promoting a dual circulation policy both domestically and internationally. Related industries such as consumer electronics, white goods, new energy vehicles, and real estate, which are key areas of support in the future, will welcome new development opportunities. The growth and expansion of these industries will continue to drive the demand for light industry coatings, providing a broad stage for domestic coating enterprises to expand market space and accelerate domestic substitution.
PART/ 4
Overview of China's Fluid-Condensing Coating Materials Industry
Current collector coating material, also known as carbon paste, is a special material used on the surface of battery current collectors. It mainly consists of carbon-based materials, conductive polymers, and solvents. Its purpose is to improve the conductivity of the current collector and enhance the adhesion between active materials and the current collector, thereby improving the overall performance of the battery. It has good electrical conductivity, can significantly reduce contact resistance, and improve the charging and discharging efficiency of batteries; high-temperature stability ensures that the battery maintains excellent performance during high-rate discharge; corrosion resistance extends the battery's service life; at the same time, it enhances the adhesion of active materials, which helps to improve the consistency, cycle life, and rate performance of batteries. Carbon paste is widely used in energy storage devices such as lithium-ion batteries, sodium-ion batteries, and supercapacitors, effectively improving the charging and discharging performance of these devices and promoting the optimization and development of energy storage technology.
PART/ 5
Market scale of China's fluidized coating materials industry
Current collector coating materials are key to enhancing the performance of carbon-coated aluminum foil. By applying current collector coating materials to the surface of battery aluminum foil, a dense carbon coating layer is formed after drying, which can effectively increase the contact area of active materials, improve the adhesion of active materials to the current collector, prevent electrolyte corrosion of the current collector, and ultimately reduce polarization internal resistance, improve battery consistency, and enhance high-rate performance. It can address pain points such as high internal resistance, low energy density, and poor cycle performance of lithium iron phosphate batteries. Current collector coating materials can be used to manufacture electrodes for lithium-ion batteries and sodium-ion batteries. With the rapid development of new energy, 3C electronics, aerospace technology, and new energy vehicles, the demand for high-performance, highly conductive materials is increasing continuously, indicating considerable growth potential in the current collector coating material market.
With the development of fast charging technology, current collector coating materials are gradually being applied to copper foil surfaces to improve conductivity, enhance adhesion, reduce polarization effects, and minimize side reactions, thereby enhancing battery charging and discharging efficiency and cycle life. The optimized current distribution and improved rate performance characteristics make carbon-coated copper foils play an increasingly important role as negative electrode materials in power batteries and consumer electronics fast charging batteries. It is estimated that the demand for current collector coating materials in China will grow from 6,000 tons in 2020 to 49,000 tons in 2024, with an average annual compound growth rate of about 69.0%, and will further increase to 237,000 tons by 2029, with an average annual compound growth rate of about 38.4% from 2025 to 2029.
Source: Frost & Sullivan report
Note: The above calculates the demand for battery foils for lithium battery positive and negative electrodes as well as sodium-ion batteries
PART/6
China fluidized coating materials marketDevelopment Trends and Drivers
● Technology is continuously upgraded and innovated
The iterative upgrade of material technology plays a crucial role in the development of current collector coating materials. Firstly, the iteration of synthetic resin technology and carbon material systems has significantly improved the electrical conductivity, mechanical properties, and stability of current collector coating materials, especially in terms of high-power fast charging and cycle stability, bringing about remarkable improvements. In addition, water-based coating technology has gradually replaced traditional solvent-based coatings, meeting environmental protection requirements, reducing VOC emissions during production processes, and enhancing operational safety. Although water-based coatings may have issues with insufficient electrical conductivity, technological innovation has made the performance improvement of water-based current collector coating materials a key direction for industry development.
Secondly, the application of modified additives and multifunctional composite materials has further enhanced the comprehensive performance of current collector coating materials. Conductive additives such as metal powders and conductive carbon black not only improve the conductivity of the coating but also ensure the high-efficiency charge and discharge capabilities of batteries. Fireproof and anti-corrosion composite materials enhance the safety and long-term stability of batteries, which is particularly important for high-performance batteries. The combination of intelligent manufacturing and automation technology has also greatly improved production efficiency and coating quality, enabling current collector coating materials to maintain consistency and high standards in large-scale production, providing strong support for the rapid development of the battery industry.
The application scenarios of current collector coating materials are becoming increasingly diversified. Especially driven by power batteries, consumer electronics, and fast charging technology, the role of current collector coating materials has become increasingly crucial. Firstly, in the field of power batteries, current collector coating materials are widely used for surface treatment of negative electrode copper and aluminum foils in lithium batteries and sodium-ion batteries. The aim is to improve battery conductivity, optimize charging and discharging efficiency, reduce polarization effects, and extend service life. Their characteristics make current collector coating materials a key material in high-performance applications such as electric vehicles, meeting the needs of fast charging and high-power discharge. Secondly, in the field of consumer electronics, with the increasing requirements for battery performance in devices such as smartphones, tablets, and laptops, current collector coating materials have significantly improved the charging speed and cycle life of batteries, thereby enhancing user experience. Driven by fast charging technology, the demand for current collector coating materials has further increased. It not only enhances battery stability and safety but also optimizes battery energy distribution and thermal management, preventing battery overheating or damage during high-power input. In addition, current collector coating materials are also applied in fields such as wearable devices and smart homes, further expanding their market potential. Looking ahead, the application prospects of current collector coating materials in supercapacitors and sodium-ion batteries are equally broad. In supercapacitors, current collector coating materials improve the conductivity and stability of electrode materials and optimize high-power density characteristics. In sodium-ion batteries, current collector coating materials not only enhance the conductivity and adhesion of negative electrode materials but also improve the cycle life and stability of batteries and effectively reduce costs. With technological progress, the application of current collector coating materials in various energy storage systems will continue to expand, driving the improvement of overall performance and the growth of market demand.
PART/ 7
Overview of China's Heat Exchanger Energy-saving Coating Materials Industry
Heat exchangers are an indispensable part of air conditioning devices (air conditioners). Among them, high-performance air-conditioning aluminum foil (air-conditioning heat exchange sheet) helps to extend the lifespan of air conditioners, reduce power consumption, improve ventilation quality, and enhance cooling efficiency. Air-conditioning aluminum foil can be mainly divided into uncoated aluminum foil (plain aluminum foil) and coated aluminum foil. Coated aluminum foil can be further classified into hydrophilic aluminum foil, hydrophobic aluminum foil, self-lubricating aluminum foil, corrosion-resistant aluminum foil, and anti-mildew aluminum foil. In 2024, hydrophilic foils accounted for more than 70% of the air-conditioning aluminum foil shipments. The performance of hydrophilic foils is mainly determined by energy-saving coating materials.
Energy-saving coating materials mainly involve surface treatment of the aluminum foil, the basic material for the heat exchange fins of air conditioners, to form hydrophilic foils. This allows water molecules to spread evenly and adhere stably, avoiding local accumulation. The primary function of energy-saving coating materials is to make it easier for water droplets in hot air to spread out and flow downward when they condense on the heat exchange fins. This prevents the condensation of water droplets between fins from affecting the ventilation efficiency of the air conditioner, thereby improving the thermal exchange rate of the air conditioner. Under the same cooling capacity conditions, it reduces power consumption and ensures ventilation quality.
PART/ 8
Market scale of energy-saving coating materials for heat exchangers in China
The market for energy-saving coating materials for air-conditioning heat exchangers is closely related to the changes in the air-conditioning market. At the same time, the Chinese market for energy-saving coating materials for air-conditioning heat exchangers accounts for over 80% of the global market. After the pandemic, overseas markets have maintained continuous growth, with rapid expansion in industrial and commercial as well as other air-conditioning markets between 2021 and 2024. In the future, with the increasing demand for air-conditioning replacements, there will be a continuous growth in the demand for new types of air-conditioning that require energy-saving coatings, and more air-conditioners tend towards larger sizes, driving structural upgrades across the industry. At the same time, the recovery of overseas markets and sustained demand will drive the expansion of the air-conditioning industry, especially in industrial and commercial as well as other air-conditioning sectors. Domestic air-conditioning companies are further leading the expansion and innovation of the global air-conditioning industry by strengthening overseas production capacity construction and sales channel layout. Recently, many local governments in China have jointly launched subsidies for exchanging old air-conditioners for new ones with home appliance companies. In the future, the air-conditioning industry will also stimulate domestic demand through subsidies such as those for exchanging old for new, maintaining growth in demand.
In addition, the future development growth rate of the market for energy-saving coating materials for air-conditioning heat exchangers in China is expected to be steadily higher than the growth rate of air-conditioning production. This is mainly due to the following factors: 1. New types of air-conditioning heat exchanger fins have a greater density, increasing the coated area, and new models will adopt better-performing coating materials, thus driving up product unit prices year by year; 2. Commercial and industrial air-conditioners have a greater cooling capacity than residential ones, and the coated area of heat exchanger fins is also larger, accelerating the growth rate of overall value; 3. In air-conditioning heat exchangers, in addition to fins, other components such as heat exchange tubes may also increase the possibility of coating in the future, further ensuring their performance in heat exchange with the external environment. Therefore, it is expected that the market scale for energy-saving coating materials for residential air-conditioning heat exchangers in China will grow from about 39,000 tons in 2025 to about 43,000 tons in 2029, with an annual compound growth rate of 2.6%. With the continuous increase in air-conditioning cooling capacity, commercial and other types of air-conditioners drive the development of overall energy-saving coating materials for air-conditioning heat exchangers. The market scale is expected to grow from about 15,000 tons in 2025 to 17,000 tons in 2029, with an annual compound growth rate of 3.6%.
Source: Frost & Sullivan report
PART/ 9
China's Heat Exchanger Energy-saving Coating Materials Market
developmentTrend and Driver Analysis
● Technological innovation and increasing demand for customized coatings
The technological innovation of heat exchanger energy-saving coating materials is mainly reflected in the iteration of two core functions: hydrophilicity and anti-corrosion. Superior hydrophilicity and anti-corrosion properties help further improve the heat exchange efficiency of air conditioners, better prevent scaling and dirt, achieve energy consumption reduction, and the stronger the corrosion resistance, the longer the service life can be extended. At the same time, leading manufacturers of energy-saving coating materials are committed to multi-functional customized applications, including antibacteriality, easy cleaning, self-lubrication, and other functions. Through the application of mature resin synthesis processes, integrated applications of energy-saving coating materials products under multiple functions are realized.
In addition, leading manufacturers of heat exchanger energy-saving coating materials are committed to providing comprehensive high-hydrophilicity and anti-corrosion coatings and coating designs for air conditioners. For example, they are upgrading the coatings of multiple components such as heat exchanger surfaces, fins, and U-shaped copper tubes to meet anti-corrosion and hydrophilicity requirements in various scenarios such as low-temperature baking and frosting. They adapt to multiple coating methods in product coating applications, ensuring long-lasting mildew resistance and superior hydrophilicity performance, while also extending the service life of air conditioner heat exchangers. Therefore, continuous technological innovation and customized coating demands drive product iteration development in the energy-saving coating materials market, optimizing the performance and lifespan of air conditioners, especially industrial and commercial ones.
● Market coating materials for environmental protection and sustainable development
Multiple policies are promoting the widespread application of environmentally friendly and energy-saving coating materials, focusing on the development of energy conservation and emission reduction across the entire industry. The aim is to reduce harmful substance emissions, improve energy efficiency, and promote the use of sustainable materials. The 'Administrative Measures for the List of Key Environmental Supervision Units' issued in December 2022 point out that enterprises above designated size in the industrial coating industry that use water-based, solvent-free, and other four types of low-VOC-content coatings as stipulated by the state can be exempted from being listed as key air pollution discharging units. At the same time, relevant policies such as the 'Air Quality Improvement Action Plan' launched in December 2023 also indicate an increase in the proportion of green products in industries such as coatings, putting forward requirements for low VOC emissions, which helps to expand the markets for energy-saving coating materials globally and in China, achieving environmental protection and sustainable development. In addition, the 'Action Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Exchange for Old with New' issued in 2024 coordinates the expansion of domestic demand, promotes new demand for air-conditioning industry exchanges for old with new, and drives the sustainable development of the energy-saving coating material market.
PART/ 10
Overview of China's Packaging Coating Materials Industry
Packaging coating materials are a type of paint applied to the surface of various packaging materials, designed to provide protection, decoration, and functionality. These coatings are used to form a solid, durable layer on packaging products to improve their wear resistance, water resistance, corrosion resistance, chemical resistance, and aesthetics. The types and formulations of packaging coatings vary, and different types of coatings can be selected based on different packaging materials and application requirements, such as water-based coatings, solvent-based coatings, UV-curable coatings, etc. These coatings are commonly used in fields such as food packaging, pharmaceutical packaging, cosmetic packaging, industrial product packaging, etc., to ensure the safety, hygiene, and quality of packaging products. According to the material, packaging coatings can be further divided into metal packaging coatings, paper packaging coatings, and others.
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Market scale of China's packaging coating materials industry
The sales volume of metal can coating materials has been continuously growing due to the increasing canned food and beverage consumption rate. Metal can coating materials can be further divided into can lid coating materials, two-piece can body coating materials, and three-piece can body coating materials. The sales volume of aluminum can lid coating materials increased from 14,000 tons in 2020 to 22,000 tons in 2024, with an annual compound growth rate of 11.9%. It is expected that the future sales volume of can lid coating materials will increase from 24,000 tons in 2025 to 30,000 tons in 2029, with an annual compound growth rate of 5.6%. The sales volume of two-piece can body coating materials increased from 39,000 tons in 2020 to 61,000 tons in 2024, with an annual compound growth rate of 12.0%. It is expected that the future sales volume of two-piece can coating materials will increase from 66,000 tons in 2025 to 84,000 tons in 2029, with an annual compound growth rate of 6.2%. The sales volume of three-piece can body coating materials increased from 56,000 tons in 2020 to 88,000 tons in 2024, with an annual compound growth rate of 11.9%. It is expected that the future sales volume of three-piece can coating materials will increase from 93,000 tons in 2025 to 112,000 tons in 2029, with an annual compound growth rate of 4.8%.
Source: Frost & Sullivan report
PART/ 12
China Packaging Coating Materials Market
Development Trends and Drivers
● Improvement of food safety standards
In recent years, the state has tightened its supervision over food safety and continuously raised the safety requirements for food packaging materials. Food packaging coating materials need to meet stricter food contact safety standards, such as low volatile organic compound (VOC) emissions, BPA (bisphenol A) substitution, and non-toxic and harmless materials, to ensure that packaging materials do not affect food quality or consumer health. Relevant departments have strengthened their supervision over packaging coatings, establishing a series of standards and specifications. For example, in 2023, the National Health Commission and the Market Supervision Administration jointly issued the "National Food Safety Standard for Plastic Materials and Products for Food Contact," and in 2021, the China Coatings Industry Association released the "China Coatings Industry '14th Five-Year' Plan." These policies put forward strict requirements for the composition, performance, and use of coating materials. Small workshops with substandard product quality face the risk of being phased out, while leading enterprises with advanced technology and R&D capabilities can continuously develop products that meet new standards, gaining an advantage in market competition. The packaging coating materials industry will accelerate concentration, and the market share of leading enterprises will further expand, gradually forming a competitive pattern where the strong become stronger. Leading enterprises will have greater market discourse power and pricing rights, obtaining higher profit margins. At the same time, to maintain their competitive edge, leading enterprises will continue to increase investment in research and development, developing safer, more environmentally friendly, and efficient packaging coatings. This will drive technological progress in the industry and provide a more reliable guarantee for food safety.
● Driven by downstream market demand
With the growth of the market size for disposable meal boxes and pre-packaged dishes in China, as well as the increase in the canned food rate, the demand for packaging coatings is also on the rise. Packaging coating materials are a special type of coating that are widely used in the packaging materials of industries such as food, beverages, and pharmaceuticals. They are mainly used to protect packaging materials, improve product quality and appearance, and extend the shelf life of products. Especially in the pharmaceutical field, there are strict requirements and standards for drug packaging. The 'Administrative Measures for Packaging Materials and Containers Directly In Touch with Drugs' issued by the National Medical Products Administration in 2004 set clear standards for packaging materials that come into direct contact with drugs. In the future, with continuous innovation and development of technology, the application of packaging coatings will further expand to more fields. For example, developing packaging coatings with high barrier properties to protect food and beverages from moisture, oxygen, and light; developing coatings with antibacterial properties to ensure food safety; at the same time, promoting the research and development of environmentally friendly and sustainable packaging coatings to meet people's demand for environmentally friendly packaging solutions.
PART/ 13
Overview of China's LED Packaging Materials Industry
LEDs are widely used in various application fields such as lighting, display, communication, electronic products, and medical care due to their high efficiency, energy saving, long lifespan, and adjustable brightness. In the manufacturing process of LEDs, LED packaging mainly refers to encapsulating the LED light-emitting chip inside a housing to protect the chip and provide appropriate optical and electrical performance. Therefore, LED packaging materials, as a special type of material designed for encapsulating LED devices, play a crucial role in protecting LED chips, providing heat dissipation, improving optical performance, and offering mechanical support.
Since LED packaging materials play an important role in the performance and stability of LED devices, they need to meet various requirements such as thermal conductivity, optical transparency, mechanical strength, high-temperature resistance, and oxidation resistance to ensure the efficient operation and reliability of LEDs. Considering the demands of downstream users comprehensively, manufacturers can design high-quality LED packaging materials and LED products that meet specific application needs, providing reliable lighting and display solutions for various fields.
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Market scale of China's LED packaging industry
As an important part of the LED industry, China's LED packaging industry mainly encapsulates LED chips in different types of housings to protect the chips and provide the required optical performance. In recent years, with continuous innovation in LED packaging technology and materials, LED products have continuously improved in terms of brightness, color reproduction, heat dissipation performance, etc., which has promoted the wide application of LED products in market fields such as lighting, display, transportation, and outdoor use. China has a strong industrial foundation and technical strength in the field of LED packaging. With continuous technological breakthroughs, its competitiveness in the international market continues to increase. In 2020, the market revenue of China's LED packaging industry was 665.0 billion yuan, which increased to 865.0 billion yuan by 2024, with an annual compound growth rate of 6.8% during this period. Looking ahead from 2025 to 2029, with large-scale production and technological progress, the annual compound growth rate of the LED packaging industry is expected to be 6.0%. This growth is mainly due to the gradual optimization of the cost structure of LED packaging and the continuous improvement of product performance, especially driven by new technologies such as Mini LED and Micro LED, which are continuously developing towards high efficiency and high reliability in packaging technology. In addition, with increasing social attention to sustainable development and green energy, the environmental protection and energy efficiency of LED packaging will continue to improve, further adapting to the future market development trend. Driven by these factors, the market scale of China's LED packaging industry is expected to grow from 939.0 billion yuan in 2025 to 1,184.0 billion yuan in 2029, maintaining a steady growth trend.
Source: Frost & Sullivan report
PART/15
China LED packaging material market
Development Trends and Drivers
● Continuous growth in demand for smart lighting and display products
As society's demand for intelligent, efficient, and sustainable lighting solutions continues to grow, traditional lighting products are rapidly transitioning towards intelligence. Intelligent lighting products utilize LED technology and intelligent dimming control systems, significantly improving energy efficiency and saving on energy. Through flexible light control, color temperature adjustment, and custom scene settings, intelligent lighting can provide personalized, comfortable, and intelligent lighting experiences, meeting users' desire to adjust lighting environments according to their needs. With the gradual rise in market demand for intelligent lighting, LED technology is also continuously developing and innovating to meet the needs of more complex and intelligent lighting systems, promoting the industry towards a more environmentally friendly and energy-saving direction, and further enhancing the technical level and market application capabilities of the entire LED industry chain.
● Technological innovation iteration and upgrade
With the development of technology and display technology, Mini LED and Micro LED, as innovative forces in the display field, are reshaping the industry landscape. Mini LED, relying on miniaturized chips and regional dimming technology, significantly improves the contrast and picture quality of liquid crystal displays while helping to make devices thinner and lighter, with surging demand in fields such as televisions and mobile devices. In contrast, Micro LED uses self-luminous micron-level pixel units to build high-density arrays, offering significant advantages in terms of brightness, resolution, contrast, and energy efficiency, and are widely used in high-end scenarios such as wearable devices like AR/VR and in-vehicle displays. However, the current mass production cost of Micro LED is relatively high, and it is still in the stage of technological breakthroughs and industrialization advancement, being considered the ultimate solution for LED display technology. With the rise of emerging markets such as VR and AR, the demand for high-performance display technology continues to grow, driving the development of the Mini LED and Micro LED markets, and accelerating innovation in packaging materials towards high temperature resistance, high flexibility, and optical stability, further facilitating the evolution of third-generation display technology.
