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Courtesy of LEDs Magazine

After growth of just 6% in 2005 and 2006, then 9.5% in 2007 (to $4.6bn), the market for packaged high-brightness LEDs should grow by 12% in 2008, according to a market update presented by Bob Steele of market research firm Strategies Unlimited at its 2008 Strategies in Light conference in Santa Clara, CA, USA last week.

In 2007 the largest segment was mobile appliances, with 44% market share. However, the largest growth was seen in the solid-state illumination and the signs & displays markets. Solid-state illumination accounted for 7% of the market ($320m),

With growth accelerating as applications outside the mobile phone market come to the fore, Steele predicts a compound annual growth rate (CAGR) of 20% in the next five years, to a total market of $11.4bn in 2012.

The largest application in 2012, with 44% of the market, will be signs & displays, including backlighting for large LCD screens (monitors and TVs). The solid-state illumination market is expected to grow from $320m in 2007 to nearly $1.37bn by 2012. Energy efficiency is a major driver for moving LEDs into the general (white) lighting market, but products must deliver value on a cost-of-ownership basis, and must have proven LED fixture efficiency and lifetime to win customer acceptance, says Steele.

Between 2004 and 2007, unit shipments have increased by 26% per year to about 39 billion, while ASPs (average selling prices) have fallen by about 16%. Overall, the product mix has shifted quite dramatically, with high-power packages now accounting for 10% of the market.

*Strategies Unlimited also announced that the first Strategies in Light Japan event will be held in Tokyo on 16-17 October 2008.

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