Asia Pacific Light Emitting Diodes (LED) Market

In the recent years, the application of LED was limited to particular lighting needs without a presence in mainstream applications for general lighting. However, the development of LED in applications such as general lightings and mobile devices has largely boosted the market. LED is expected to take over the conventional CFL and CCFL lighting market, owing to its advanced features and higher performance. Moreover, LED is emerging as a cost effective solution for all lightings and for other application purposes such as backlighting in large screen displays, non-backlight displays (OLED) and many others.

The LED industry in Asia-Pacific region projects an optimistic scenario for the growth of LED products. There is significant 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.

The LED market in Asia –Pacific region is projected to exhibit a high growth. Booming real estate industry, favorable government initiatives and increased funding for high efficiency lighting along with the continuous replacement of existing outdoor lighting, is expected to drive the market dynamically. The region would go on to become a principal consumer of LED products and is expected to become a major supplier for LED chips and packages, supplemented with the rising demand for product and components.

Industry insiders anticipate LED prices to drop by around 20 percent in the coming times, which would largely boost the market adoption. In addition, the current pricings of LED are already impending at a level comparable to traditional lightings.

A major reason for the decline in prices would be the rising application of LEDs in general lighting (replacing CFL and CCFL), and the use of OLEDs in display screens that require no backlighting. Many countries in Asia-Pacific are working on projects for the replacement of CFL lamps in street lightings. In addition, the rise in the demand of LED is attributed to its benefits such as low power consumption, reduced costs and long life. Thus, the decrease in the price of LEDs and a rise in the demand for LED lamps in lighting is likely to largely supplement the progression in the APAC market.

Presently, the market penetration of LEDs in household lighting has already reached nearly 10 percent. In addition, it is estimated that the smart lighting market will develop over the next 10 years and become a full-fledged member of household lighting thereby boosting the LED market further.

The scope of the APAC LED market, is expected to remain high in China and Japan. Regions such as India, presently, have lesser adoption, but are anticipated to grow at comparatively higher growth rates during the forecast period. Favorable government regulations and the increasing market for smart phones and automobiles will be the key driving factors for this market.

The intensity of rivalry among the competitors arises from a concentrated market share of key players. Substantial product differentiation and low switching cost, increases the bargaining power of the buyer. In addition, high R&D investment cost and rapid technological advancements lowers the threat of new entrants in the LED market. The prominent players of the Asia-Pacific LED Market includes Samsung Electronics Co. Ltd., Cree Corporation, Seoul Semiconductor Co. Ltd., Osram Licht AG, Nichia Corporation, LG Innotek Co. Ltd., GE lighting solution.