LED Market Overview:
LED Market (Light Emitting Diode Market) is expected to garner $42.7 billion by 2020, registering a CAGR of 13.5% during the forecast period 2014-2020. Light emitting diodes (LED) are basic components used in variety of applications. A couple of years ago, application of LED was limited to certain specific lighting needs and had not entered the mainstream general lighting applications. Entrance of LED in applications such as general lightings has given a strong thrust to the market. A variety of technologies are implemented in manufacturing of LED products. Chips and components are the basic materials assembled to manufacture the final lamp product. Companies dealing in this market are strategically diverse as they deal with different steps of the LED value chain.
The Global LED market is in its developing phase. The rise in the usage of LEDs in different sectors such as automobiles and mobile phones backlighting applications has given the necessary boost to the LED markets’ growth. In the prevailing business scenario, environmental awareness is growing amongst the people. Increasing green construction is one of the major factors for the growth of the LED market in various regions. Moreover, the growing display market and the reducing costs of the LED lamps are the contributing factors towards the growth of the LED market. On the other hand, the high investment cost in the replacement of the conventional lighting would hinder the pace of the market.
The world light emitting diode (LED) market is segmented on the basis of technology, application and geography. Market by technology is classified into basic LED, high brightness LED, organic LED, ultra violet LED, polymer LED. Moreover, application segment is further bifurcated into automotive, general lighting, mobile device, signal and signage, others, healthcare, forensic, academic and research. Based on geography, the world light emitting diode (LED) market is segmented into North America, Europe, Asia-Pacific, and LAMEA.
World Light Emitting Diode (LED) Market Scenario
There is huge rise in the usage of the light emitting diode technology (LED) technology in various applications such as backlighting, street lighting, automotive, mobiles, signs and signals, etc. With the increase in use of LEDs for lighting and other applications in Europe and US, it is also gaining ground in South Korea and Japan as well. The sales of the shipments of LED are expected to increase by the end of the 2014 as the demand of LED technology is increasing day by day. As per the definition of LED market in the report, the market comprises of chips and components as a packaged LED. CREE Incorporation has had $800 million sales of LED chips and components in 2013. Lumileds, CREE, Nichia, Osram LG and Samsung control 50% of LED components market. The global lighting market is expected to grow at a faster pace as compared to other applications such as automotive, backlighting, etc. On the other hand, the usage of LEDs for the backlighting purposes such as in mobile screens and displays are anticipated to witness a sharp decline during the forecast period.
Top Factors Impacting on LED Market
Increasing green construction
With increasing environmental awareness, the adoption of LED’s is expected to increase in buildings. General lighting industry would witness tremendous growth in demand for LED lights in coming years. Most of the lighting companies have started manufacturing LED lights and certain Chinese manufacturers are entering the market with cheaper LED products. Unlike fluorescent lamps, LEDs do not contain mercury, which is a hazardous element. However, LED does contain some poisonous substances such as gallium arsenide, but the quantity of this substance is very small and thus, it can be considered as a greener alternative to fluorescent lamps.
Longer life span
The life span of LED is expected to have a major impact on the demand. With rising demand for longer lifespan lights, the impact of this driver would grow in future. LEDs have a longer lifespan compared to the other light sources. For an instance, Philips LUXEON k2 LED has a lifespan of nearly 50,000 hours. On the other hand, fluorescent tubes are generally rated at about 30,000 hours, and incandescent light bulbs are rated at 1,000‐2,000 hours. LEDs are cool sources of light with no UV or heat energy emission. Thus, these lighting systems do not overheat. These factors are expected to propel the market during the forecast period.
High efficacy LED
There are numerous opportunities in the current LED market in various regions across the world. As it the developing technology in some regions, high efficacy of the LED would positively impact the growing regions. It could be the positive factor for the growth of the technology and would positively impact the global LED market as it would give desired results. However, technological advancements are on and vendors are now coming up with higher efficacy with some claiming an efficacy close to 300 lumens per watt (it is still in the labs though). It is expected that such high efficacy LEDs will be out in the commercial market within few years and create demand for the same in applications such as streetlights, where LED lights can replace high-pressure sodium vapor lamps and halide lamps.
High Brightness LED Applications
- The study provides an in-depth analysis of the global LED market with current and future trends to elucidate the imminent investment pockets in the market
- Current and future trends are outlined to determine the overall attractiveness and to single out profitable trends to gain a stronger foothold in the market
- Quantitative analysis of the current market and estimations through 2013-2020 are provided to showcase the financial caliber of the market
- Drivers and opportunities are evaluated to highlight the top factors responsible for market growth. Various segments are carefully evaluated to gauge the potential of the market
- Porters Five Forces model and SWOT analysis of the industry illustrates the potency of the buyers & suppliers participating in the market
- Value chain analysis in the report provides a clear understanding of the roles of stakeholder involved in the value chain
KEY MARKET SEGMENTATION
LED Market by Technology
- Basic LED
- High Brightness LED
- Organic LED
- Ultra violet LED
- Polymer LED
LED Market by Application
- General Lighting
- Mobile Device
- Signal and Signage
- Academic and Research
LED Market by Geography
- North America
- Asia Pacific