May 6, 2015: Strategies Unlimited, which has researched the LED industry for over two decades, just published its latest report investigating the global packaged LED market. The Worldwide Market for LEDs: Market Review and Forecast 2015 analyses 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 was also done by 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.
According to Strategies Unlimited, in 2014 the total packaged LED market grew 7.6% to reach revenues of $15.6 billion. 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 5-year CAGR of 14.3%.
The lighting applications that will see the largest growth are replacement lamps, commercial luminaries, and outdoor luminaires. According to Stephanie Pruitt, senior research analyst at Strategies Unlimited, “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.”
Prices for packaged LEDs in lighting saw some steep declines from 2013 to 2014. Most suppliers were seeing price declines of around 20%, while some were reporting declines as steep as 25%-30%, especially so 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.
According to Pruitt, “LED lighting has yet to reach its tipping point. Prices continue to drop, rebates continue to incentivise, 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, labour/maintenance savings, indoor navigation, and improved security. As a result, packaged LEDs in lighting will continue to be a growth segment.”
Lighting won’t be the only sector to see healthy growth over the forecast. Automotive 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%.
About Strategies Unlimited
Strategies Unlimited, a division of PennWell Corporation, is the world leader in market research in LEDs and lighting, lasers and photonics devices, and beyond. With a unique blend of in-depth historical market knowledge and technological expertise, Strategies Unlimited produces highly detailed market reports, custom studies, and provides consulting services. Additionally, Strategies Unlimited presents industry events, including the Strategies in Light series and The LED Show, to large audiences worldwide. For additional information about Strategies Unlimited, contact Tim Carli.
About PennWell Corporation
Founded in 1910 in Tulsa, Oklahoma, PennWell Corporation is a privately held and highly diversified business-to-business media and information company that provides quality content and integrated marketing solutions for the following industries: Oil and gas, electric power generation and delivery, hydropower, renewable energy, water and waste water treatment, waste management, electronics, semiconductor manufacturing, optoelectronics, fiber-optics, aerospace and avionics, LEDs and lighting, fire and emergency services, public safety, and dental. PennWell publishes over 130 print and online magazines and newsletters, conducts 60 conferences and exhibitions on six continents, and has an extensive offering of books, maps, websites, research and database services. In addition to PennWell’s headquarters in Tulsa, Oklahoma, the Company has major offices in Nashua, New Hampshire; London, England; Houston, Texas; San Diego and Mountain View, California; Fairlawn, New Jersey; Moscow, Russia; and Hong Kong, China. For additional information about PennWell Corporation, visit www.pennwell.com.
