News

13 May 2009

 

LED market still on target to exceed $33bn by 2013

In direct contrast to the bearish global economy and the resulting contraction in many product categories, demand and usage of LEDs is booming, according to the report ‘LED Lighting: Solid State Lighting Applications, Technologies, and Market Opportunities’ from NextGen Research (the emerging technology arm of ABI Research).

Starting in second-half 2007, LEDs have recovered from the sluggish sales and unit shipments that characterized the market from 2004 to mid-2007. LEDs – especially certain fast-emerging niche segments like high-brightness (HB) for specialized applications – have rebounded, and that resurgence will continue over the next three to five years.

As a result, the LED market will experience robust growth over the next five years, with the overall solid-state lighting (SSL) market reaching $33bn by 2013, forecasts NextGen Research. This growth will be fueled by increasingly powerful and energy-efficient offerings that will help businesses and consumers lower their total cost of ownership (TCO), accelerate return on investment (ROI) and be more environmentally friendly.

The illumination segment of the LED market will lead the way, with a compound annual growth rate (CAGR) of nearly 22% in 2009-2013 as cities worldwide shift their streetlights to more energy-efficient and ecologically friendly LED solutions. The display portion of the market will also shine, achieving a five-year CAGR of more than 14%.

Energized by improvements in the technology and significant extensions of product lifespans, LEDs now have powerful proponents in government agencies, municipalities, utilities and even forward-thinking private citizens, all calling for widespread acceptance and adoption of LEDs, says the market research firm.

Research analyst Laura DiDio has identified trends that have combined to make this one of the most dynamic periods in the history of LEDs. These include: bifurcation in the market between commoditized LEDs and higher-end, leading-edge applications; the speed at which LED technology is advancing; standardization and green initiatives; industry consolidation; the emergence of niche market illumination applications, and new markets for mature applications.

“The LED industry still faces challenges,” cautions DiDio. “Vendors must work with legislators and industry groups to foster a smooth, orderly transition from incandescent bulbs to the more efficient LEDs,” she adds. “Vendors also must provide specific product roadmaps to assist users with business continuity planning, and provide excellent after-market technical support and guidance during the transition period.”

See related items:

LED lighting market to grow at 28% to $5bn by 2012

LED market to exceed $33bn by 2013

LED market to grow 2.9% in 2009, aided by LCD-TVs

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Visit: www.nextgenresearch.com