22 February 2011

HB-LED market grew 93% in 2010, driven by LCD TV/monitor backlights

The global high-brightness (HB) LED market grew 93% from $5.6bn in 2009 to $10.8bn in 2010, according to market research firm Strategies Unlimited after analyzing market demand as well as the supply-side activity of more than 40 HB-LED component suppliers. LCD monitor and TV backlights led the growth spurt, followed by mobile display applications.

Ten firms accounted for more than 75% of the HB-LED market. The rank order of the top 10 suppliers in 2010 (by revenue, for packaged LED sales only) is: (1) Nichia; (2) Samsung LED; (3) Osram Opto Semiconductors; (4) Philips Lumileds Lighting; (5) Seoul Semiconductor; (6) LG Innotek; (7) Cree; (8) Sharp; (9) Toyoda Gosei; and (10) Everlight.

By regional breakdown, of total HB-LED supply in 2010 (by revenue), 33% came from Japan, 28% from Korea, 14% from Taiwan, 23% from USA/Europe, and 2% from China. While Chinese HB-LED technologies are currently 3–5 years behind the rest of the world, Strategies Unlimited expects that the investment of $10.4bn in the SSL industry by 2015 will help to close the gap.

Chart credit: Strategies Unlimited.

Several paths led to the impressive growth in 2010. Samsung LED, Seoul Semiconductor, and LG Innotek rode the boom in the LCD TV and monitor backlight market. Osram rode the rise of the Chinese HB-LED market, especially in the automobile sector. Lumileds’ success in high-power backlight products, cell-phone flash, and architectural lighting contributed to much of its success. Cree’s dedicated focus on lighting ensured its continued strong position in the solid-state lighting (SSL) revolution.

While LCD TV/monitor backlights accounted for the largest part of the jump in HB-LED revenue in 2010, mobile applications were also significant contributors. In particular, the large rise in PC notebook sales and the penetration rate for LED backlights used in notebooks doubled HB-LED revenue over 2009. Strategies Unlimited expects TV and monitor backlights to continue to be a strong engine for growth in the next two years before flattening out in 2013. The overall forecast compound annual growth rate (CAGR) is more than 16% from 2010–2015.

The primary concern for the lighting market in 2010 was LED luminaire design, not performance. HB-LED component revenue for lighting was $890m in 2010. Solid-state lighting will become the key market driver in 2014 because of the worldwide focus on energy efficiency and the phase-out of incandescent bulbs. The CAGR for HB-LED components for lighting from 2010–2015 is forecast to be 39%.

Strategies Unlimited’s HB-LED market analysis is being presented by Ella Shum, director of the firm’s LED Practice, at the Strategies in Light conference in Santa Clara, CA, USA on 23 February.

See related items:

Large-size LED-backlit LCD panels to reach 67% market share in 2011

LED pricing pressure extending into Q1/2011

LED TV panel demand to rise significantly in January/February

Tags: HB-LED market LCD TV/monitor backlighting

Visit: www.strategies-u.com

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