Info
Info
News Article

LED Market Growing At 17 Percent CAGR

News
Adoption of LED in emerging countries buoying LED market until 2020, says Technavio

According to the latest research study released by Technavio, the global LED market is expected to record a CAGR (compound annual growth rate) of close to 17 percent until 2020.

This research report titled 'Global LED Market 2016-2020', provides an analysis of market growth in terms of revenue and emerging market trends. The market size is calculated on the basis of revenue generated from four segments, including general lighting, backlighting, automotive lighting, and others.

"China supports the largest LED industry in the world and accounts for close to 30 percent of the world production, thanks to tax benefits and subsidies provided by the government to its manufacturers. Even the government of India has launched similar projects for promoting energy conservation, and it is likely to draw massive investments into the sector during the forecast period," said Asif Gani, one of Technavio's lead analyst for semiconductor equipment research.

Technavio breaks down the Global LED market in 2015 as general lighting 40.25 percent, backlighting 29.01 percent, automotive lighting 12.99 percent, and others 17.75 percent

The LED market in the general lighting segment was valued at $5.76 billion in 2015. The residential market is the largest revenue contributor to the general lighting segment. Applications of LED lights for residential purposes include lighting in bathrooms, dining rooms, hallways, and kitchens. LED lights have emerged as the best replacement option for fluorescent lights. They are available in different styles and help reduce energy usage.

In the US, domestic users enjoy federal tax credits known as residential energy-efficiency tax credits for improving the energy efficiency of their homes. Similar incentives formulated by governments across the world will likely boost market growth until 2020.

LED market in the backlighting segment is second-largest market.This segment was valued at $4.15 billion in 2015. The market is witnessing the growing adoption of OLED technology in applications such as smartphones and televisions. OLEDs provide high-quality picture content as well as an overall thin frame. Most LED companies are facing challenges in the market due to price wars and oversupply of LED chips from the Chinese market. This has made companies shift from traditional LEDs to OLEDs.

For instance, prominent vendors like Samsung have drawn their focus away from the LED TV market. Similarly, Osram and Lite-On have found growth opportunities in the IR LED market. Osram's third major business segment is of IR components, and this helps the company develop comprehensive in-house products such as IR LED and IR laser technology.

The LED market in the automotive lighting segment was valued at $1.86 billion in 2015. Although LED certification automotive use takes a long time and the entry barrier for supply chain is high, the profits are attractive. This will likely draw many companies into this segment. Daytime running lights and high-low beam headlights are the two major applications in automotive lighting, which are expected to yield high growth during the forecast period. 

As consumers prefer automotive headlights for their aesthetic appeal and small size, the demand for LEDs is anticipated to surge. As the prices of LED lights witness a further decline, the adoption of automotive LED lighting systems will gradually shift from premium to medium-priced car models in the future.



AngelTech Live III: Join us on 12 April 2021!

AngelTech Live III will be broadcast on 12 April 2021, 10am BST, rebroadcast on 14 April (10am CTT) and 16 April (10am PST) and will feature online versions of the market-leading physical events: CS International and PIC International PLUS a brand new Silicon Semiconductor International Track!

Thanks to the great diversity of the semiconductor industry, we are always chasing new markets and developing a range of exciting technologies.

2021 is no different. Over the last few months interest in deep-UV LEDs has rocketed, due to its capability to disinfect and sanitise areas and combat Covid-19. We shall consider a roadmap for this device, along with technologies for boosting its output.

We shall also look at microLEDs, a display with many wonderful attributes, identifying processes for handling the mass transfer of tiny emitters that hold the key to commercialisation of this technology.

We shall also discuss electrification of transportation, underpinned by wide bandgap power electronics and supported by blue lasers that are ideal for processing copper.

Additional areas we will cover include the development of GaN ICs, to improve the reach of power electronics; the great strides that have been made with gallium oxide; and a look at new materials, such as cubic GaN and AlScN.

Having attracted 1500 delegates over the last 2 online summits, the 3rd event promises to be even bigger and better – with 3 interactive sessions over 1 day and will once again prove to be a key event across the semiconductor and photonic integrated circuits calendar.

So make sure you sign up today and discover the latest cutting edge developments across the compound semiconductor and integrated photonics value chain.

REGISTER FOR FREE

VIEW SESSIONS

Info
×
Search the news archive

To close this popup you can press escape or click the close icon.
×
Logo
×
Register - Step 1

You may choose to subscribe to the Compound Semiconductor Magazine, the Compound Semiconductor Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in:
 
X
Info
X
Info
{taasPodcastNotification}
Live Event