11 May 2015
Largest growth rates will be in replacement lamps, and commercial and outdoor luminaries - Strategies Unlimited report.Strategies Unlimited, which has researched the LED industry for over two decades, has published its latest report investigating the global packaged LED market.
The Worldwide Market for LEDs: Market Review and Forecast 2015 analyzes the market for packaged LEDs used in display backlighting, automotive lighting, mobile applications, signs, lighting and other applications; and provides detailed forecasts for many applications used within these sectors.
Analysis also covers material and package type including InGaN, InGaAlP, RGB and low power, mid power, high power and super high power LEDs for each sector. The report also contains market shares for the top 25 packaged LED companies with a detailed supplier analysis by region.
The report states that in 2014 the total packaged LED market grew 7.6% to reach revenues of $15.6bn. Lighting applications 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 CAGR of 14.3%.
SU comments that the lighting applications expected to see the largest growth rates are replacement lamps, commercial luminaries, and outdoor luminaires. Stephanie Pruitt, Senior Research Analyst, said, “It’s no surprise that lighting is the largest sector and will remain the largest sector throughout the forecast. Within lighting applications, the general lighting categories make up nearly 75% of the total lighting revenues. The replacement lamps market and luminaire market are very large, and as LED adoption grows, packaged LED revenues in these segments will also grow.”
Unit price drops continue
Prices for packaged LEDs in lighting saw some steep declines from 2013 to 2014, the report adds. Most suppliers have seen price declines of around 20%, while some have reported declines as steep as 25%-30%, especially for chip-on-board packages. However, says the report, “despite these price declines, the continued adoption of LED lighting in homes and commercial applications has allowed for the largest growth of any sector.”
Pruitt added, “LED lighting has yet to reach its tipping point. 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. Smart, controllable lighting will also have an impact on adoption rates as this creates huge possibilities for the consumer; think energy savings, labor and maintenance savings, indoor navigation, and improved security. As a result, packaged LEDs in lighting will continue to be a growth segment.”
Lighting is not the only sector expected to see healthy growth over the forecast period. The automotive market is also poised for strong growth as LEDs in headlamps and daytime running lights continue to be an option in cars, and not just high-end cars. LED revenues in exterior automotive lighting applications are forecast to have a CAGR of 15%.