18 August 2014

Mid-power LEDs to account for 48% of market in 2014

The growing lighting end-market in 2014 is now projected to account for 35% of all packaged light-emitting diode (LED) dollars, according to a Research Note from Jamie Fox, principal analyst at market research firm IHS Inc. For the first time, this is more than all backlighting combined. In 2013, lighting and backlighting accounted for 31% of market revenue each.

Mid-power devices are projected to represent 48% of packaged LED revenue in lighting applications in 2014 and 81% in terms of units. This represents a major change since 2010 when high-power LEDs, such as 1 Watt devices, dominated. In Western regions the mid-power percentage is lower, while in Asia it is higher. Many Chinese suppliers selling LEDs to their large domestic market predominantly produce mid-power LEDs, notes Fox.

From 2011 to 2013, the market for mid-power LEDs grew rapidly, driven by the attractive dollar-per-lumen ratio and the availability of capacity previously used for backlighting. The trend was initially led by South Korean companies such as Seoul Semiconductor and Samsung. However, mid-power LEDs have become an essential part of most global companies’ portfolios, with other suppliers such as Lumileds and Cree following the trend. Nichia also has a competitive offering in mid-power, says Fox.

IHS still ranks Cree as the largest provider of packaged LEDs in lighting applications, closely followed by Nichia and Lumileds. Despite this, during the last few years the competition from Asian companies has increased in lighting applications.

In 2015 and beyond, IHS forecasts that the share of mid-power LEDs will continue to increase. The share of chip-on-board (COB) is also growing and playing an increasingly important role as completed lighting products are being designed for a wider variety of target end-markets. High-power LEDs are still popular in some areas such as street lighting, says IHS, and should retain a strong presence in the market.

Excluding lighting, the rest of the LED market is almost completely flat from year–to-year, and is forecast to stay that way to 2019, according to IHS’s LED Intelligence Service. The lighting market, led by mid-power LEDs, will drive the growth, it is concluded.

Tags: LED market

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