News

3 February 2009

 

LED market to exceed $33bn by 2013

The overall solid-state lighting (SSL) market will exceed $33bn by 2013, forecasts NextGen Research (the emerging technology arm of ABI Research) in its new report ‘LEDs and Laser Diodes: Solid State Lighting Applications, Technologies, and Market Opportunities’.

Energized by improvements in the technologies that have produced dramatic increases in light output for both high brightness and color, and significant extensions of their life spans, LEDs have powerful and vocal proponents among local, state and federal governments, commercial industries and private citizens. These groups all are encouraging widespread acceptance and adoption of LEDs as a viable mainstream and green technology.

As a result, the LED market will experience robust growth over the next five years, fueled by increasingly more-powerful and energy-efficient offerings that will help businesses and consumers lower their total cost of ownership, accelerate return on investment, and be more environmentally friendly, says the market research firm.

In particular, the illumination segment of the LED market will light the way with a compound annual growth rate (CAGR) of nearly 22% in 2009-2013. Also, the display portion of the market will experience a five-year CAGR of over 14% as cities shift their streetlights to more energy-efficient and ecologically friendly solutions.

The market research firm says that a number of trends have intersected to make this one of the most dynamic periods in the history of LEDs. These include the bifurcation of the market between commoditized consumer LEDs and higher-end, leading-edge applications; the transition of applications from incandescent to LED usage; standardization and green initiatives; consolidation within the industry; the emergence of new niche illumination applications, and new markets for mature applications.

Research analyst Laura DiDio identifies a number of factors spurring LED adoption, including: environmental and green energy initiatives; the need for more durable, longer-lasting and more-efficient lighting technologies; utility capacity shortages; and the need to reduce power consumption and costs.

On the other hand, the LED industry faces several challenges. “Vendors must work with legislators and industry groups to foster a smooth, orderly transition from incandescent bulbs to the more efficient LEDs,” says DiDio.

See related items:

HB-LED lighting market to grow to $1.65bn in 2012

Market for packaged LEDs in solid-state lighting to more than triple by 2012

Search: LEDs SSL

Visit: www.nextgenresearch.com