by Brianna Crandall — October 13, 2014—According to a recently released market research report by Allied Market Research (AMR) , the global LED (chips and components) market is forecast to reach $42.7 billion by 2020, registering a compound annual growth rate (CAGR) of 13.5% from 2014 to 2020. Asia Pacific commands dominance of the LED technology market, finds the report. The region houses approximately three-quarters of the global electronics manufacturing industries. North America, due to its high-tech forensic and medical applications, reportedly leads the market for ultraviolet (UV) LEDs.
After the grand success of compact fluorescent lights (CFLs), LEDs are the next buzzing technology in the general lighting industry, according to the report. The absence of hazardous liquid mercury and power efficiency have allowed LEDs to successfully penetrate the market and overtake CFL lighting in the commercial market.
It is anticipated that LED lights will command about 20% share of the global lighting market by 2020. This will be equivalent to two-thirds of the revenue for LED. However, the demand for basic LED in backlighting applications is expected to decline as organic light-emitting diode (OLED) technology broadens its horizon of applications and eventually supersedes basic LED-based mobile displays.
Ultraviolet (UV) LED primarily finds its application in medical treatments and forensic tests, explains AMR. UV LED technology anticipates further development as companies are rigorously working out acquisitions to expand their product portfolio and applications. Although developed regions are early adopters of the UV LED technology, the healthcare sector in developing regions such as Asia Pacific is also contributing to the growth of the technology. The growing field of medical tourism and the lower cost of treatments are expected to strengthen the adoption of UV LED technology in developing regions.
Foreseeing great environmental benefits and energy-saving capabilities, governments across the globe are implementing LED lighting in many public settings. The U.S. government has already started replacing conventional street lights with LEDs, which is anticipated to be complete by the end of 2014. Such developments are and will be instrumental in the growth of the LED technology market.
“The growth in revenue will be slower than the rise in unit sales of LEDs due to the constantly declining price of LEDs; however, the overall market would grow at a constant pace due to growing demand for LEDs and expanding applications” states AMR analyst Ranjan Singh. “Continuous development in the technology suggests huge underlying potential for OLEDs during the forecast period,” adds the analyst, citing the recent rollouts of OLED mobile handsets by Samsung and Nokia.
High-brightness (HB) LEDs hold nearly 60% of the market share, since the technology can provide much brighter light with lower voltages as compared to other market alternatives. The rapid growth in the 4K TV segment suggests that HB LED will continue to hold the key to the growth of LED technology market. Major companies such as Samsung SDI and RIT Display are investing substantially in the development of advanced OLED display technologies.
The rising application of LED in general lighting has compelled the manufacturers to concentrate on the launch of new LED lighting products and to expand their production. The notable players in this space include American Bright Optoelectronics Corps, Cree Incorporation, International Light Technologies, Ledtronics, Philips Lumileds Lighting Company, Samsung Electronics Co. Ltd., Seoul Semiconductor Co. Ltd., OSRAM Licht AG, Nichia, LG Innotek Co Ltd., GE Lighting Solutions, and Toyoda Gosei Co., Ltd. Nichia, Samsung, and Osram held a nearly 35% share in the global LED market revenue in 2013.
Global Light Emitting Diodes (LED) Market (Applications, Technology, Geography)—Size, Share, Global Trends, Company Profiles, Demand, Insights, Analysis, Research, Report, Opportunities, Segmentation and Forecast, 2013 – 2020 is available from the AMR Web site.
