6 May 2015

Packaged LED market to grow from $15.6bn in 2014 to $22bn in 2019

In 2014 the global packaged LED market grew 7.6% to $15.6bn, according to Strategies Unlimited's report 'The Worldwide Market for LEDs: Market Review and Forecast 2015', which analyzes the market for packaged LEDs used in display backlighting, automotive lighting, mobile applications, signs, lighting and other applications.

Lighting made up 34% of total revenues, which was almost the same as display backlighting and mobile applications combined at 35%. The lighting share is expected to reach 45% of total revenues by 2019, with the largest growth of any sector at a five-year compound annual growth rate (CAGR) of 14.3%. "Lighting is the largest sector and will remain the largest sector throughout the forecast," says senior research analyst Stephanie Pruitt.

"Within lighting applications, the general lighting categories make up nearly 75% of the total lighting revenues," says Pruitt. However, the lighting applications that will see the largest growth are replacement lamps, commercial luminaries, and outdoor luminaires. "The replacement lamps market and luminaire market are very large and, as LED adoption grows, packaged LED revenues in these segments will also grow," adds Pruitt.

Prices for packaged LEDs in lighting saw some steep declines from 2013 to 2014. Most suppliers were seeing price declines of about 20%, while some were reporting declines as steep as 25-30%, especially for chip-on-board packages (COBs). However, despite these price declines, the continued adoption of LED lighting in homes and commercial applications has allowed for the largest growth of any sector, notes Strategies Unlimited. 

"LED lighting has yet to reach its tipping point," says Pruitt. "Prices continue to drop, rebates continue to incentivize, and manufacturers continue to come up with new and exciting ways to make LED lighting relevant and desirable. With LEDs, customers are able to install lighting where they never would have thought before, opening up new opportunities," he adds. "Smart, controllable lighting will also have an impact on adoption rates, as this creates huge possibilities for the consumer - think energy savings, labor/maintenance savings, indoor navigation, and improved security. As a result, packaged LEDs in lighting will continue to be a growth segment."

Lighting will not be the only sector to see healthy growth over the forecast, forecasts Strategies Unlimited. Automotive is also poised for strong growth as LEDs in headlamps and daytime running lights (DRLs) continue to be an option in cars, and not just high-end cars. LED revenues in exterior automotive lighting applications are forecast to grow at a CAGR of 15%, concludes the market research firm. 

Tags: LEDs SSL Lighting market COB

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