LED Component Market expected to grow to $16.4 billion in 2017 with lighting ranking first among all application segments, according to Strategies Unlimited.
LED component revenue for lighting applications reached $3.11 billion in 2012, narrowly dethroning the Large Area Display Backlight segment at $3.06 billion, according to Strategies Unlimited, the leading market research firm covering the LED industry. The worldwide market for LED components was $13.7 billion and is expected to grow to $16.4 billion in 2017, for a CAGR of 3.7 per cent.
The total illumination market for 2012 is estimated at $14.52 billion. LED lighting includes LED replacement lamps and luminaires is estimated at $11.72 billion—an increase of 26 per cent between 2011 and 2012—and it is forecast to grow at a CAGR of 12 per cent over 2012-2017.
LEDs used in large display (TV and monitors) backlights also reached a new record at $3.06 billion in 2012. This is chiefly due to the success in penetrating the CCFL stronghold of the 32-inch TV.
Chubby TVs will spread from 32 inches in both directions in size. It is expected to reach TVs 42 to 50 inches size in 2013-2014. With drastic reduction in number of LEDs used and rapid price erosion, the large display market for LEDs is expected to decline to $1.7 billion in 2017.
The total market for LEDs in the automotive segment was $1.4 billion in 2012, and is projected to grow to $2.1 billion in 2017. The number of cars with LED headlights nearly doubled in 2012. Revenue for 2012 was $97 million and the five-year CAGR is projected to be 36 per cent.
While LED revenue from tablets grew 54 per cent to $578 million, the overall mobile segment dropped 3 per cent. The drop in notebook backlight demand, the OLED success in smart phone display, and the general demand decline for other small and medium display will take the segment down to $958 million in 2017, for a 5 year CAGR of -7 per cent.
The signage segment is expected to grow to $2.4 billion in 2017, for a CAGR of 7 per cent. Use of LEDs in signage and channel letters grew 7 per cent to $1.7 billion in 2012. Full-color signs contributed more than 80 per cent of the revenue.
