According to a research report titled, 'Status of the LED Industry' released by market research firm Yole Development and EPIC, the packaged LED market is likely to see tremendous growth between 2012 to 2018. Industry is getting into its third growth cycle through general lighting
LYON, FRANCE: According to a research report titled, 'Status of the LED Industry' released by market research firm Yole Development and EPIC, the packaged LED market is likely to see tremendous growth between 2012 to 2018.
The report analyses all applications of LEDs and associated market metrics, LED cost reduction opportunities, entire LED value chain, a deep analysis of the general lighting application and an analysis of geographical trends.
According to the study, LED industry is getting into its third growth cycle through general lighting. LED TVs were considered as the major growth driver for the LED business segment but it had witnessed lower adoption in the TV market.
Factors like entry of newer competitors mostly from Asian market brought in the situation of overcapacity, price pressure and strong competition. This led to de-growth as the packaged LED volume was recorded 30 per cent below expectations.
"In 2012, most companies have moved to the new 'El Dorado' of LED business: general lighting, which represents the next killer application for LEDs. But enabling massive adoption of the technology for such an application still requires a large decrease in the cost of LED-based products," explains Pars Mukish, Market and Technology analyst, LED at Yole.
As estimated by Yole Development and EPIC, the packaged LED revenue will reach a market size of $11.4 billion in 2012 and will peak to $17.1 billion by 2018. LCD TV and general lighting applications are seen as the major drivers for growth.
From 2014, the third growth cycle of the LED business will accelerate with the general lighting application representing more than 50 per cent of the overall packaged LED business.
The report also suggests the need to reduce the cost of packaged LEDs inorder to enable massive adoption in general lighting. As per the consensus gathered within the industry, a cost reduction per lumen of packaged LEDs by a factor x10 is required.
This could be possible by having access to larger size wafers, improving epitaxy cost of ownership through yield and throughput and by improving packaging technologies.
The report also suggests the need for new business models to capture added value of LED lighting.
