4 November 2010


LED-based lighting market to drive opto sales

The increasing demand for energy-efficient systems is expected to drive the sales of LED-based lighting devices, according to a new report ‘Optoelectronics Market to 2020 — Push for Energy Efficiency to Increase Demand for LED based Applications’ from GBI Research. The display and lamp market is expected to grow at a compound annual growth rate (CAGR) of 9.41% over 2009–2020. Lighting accounts for 20% of the world’s electricity consumption and there is increasing demand for energy-efficient and environmentally friendly technologies. These requirements are largely fulfilled by optoelectronic applications such as LEDs, which consume only 20% of the energy compared to a traditional incandescent bulb and can last up to 25,000 hours.

Also expected to boost optoelectronics sales during 2010–2020 is the increasing use of consumer devices that require solid-state lighting and image sensors, such as smart phones, digital cameras, mp3s, iPods, and LCD TVs. The rapid adoption of smart phones with LED backlighting is expected to boost demand for optoelectronic products, especially LEDs and image sensors. Smart-phone usage is set to increase dramatically, with the sales volume forecasted to rise from 174 million in 2009 to 500 million in 2014.

Revenue for image-sensor devices is predicted to grow 29% year-on-year (YoY) to an unprecedented $8.3bn in 2010, with demand for digital cameras, camera phones, and machine-vision systems recovering with the global economy. In 2010, CMOS-based devices had a 61% share of revenue and charge-coupled devices (CCDs) the remaining 39%. Complementary metal-oxide-semiconductor (CMOS) image sensors dominate high-growth portable system applications (such as camera phones, webcams in notebook computers, and other embedded cameras in handheld products) and will drive growth in demand for image sensors. In particular, new specialized and high-speed CMOS imagers are increasingly being used in automotive systems, medical equipment and wireless video security networks. CMOS imaging devices are also used in optical mouse, toys and video games.

The automotive industry will be a key consumer of optoelectronic devices during 2009–2020, with a revenue share of 8% in 2010. The application of optoelectronic devices has started to gain momentum in the automotive industry, which will increasingly depend on the optoelectronics industry for safety and convenience solutions. LEDs are extensively used for interior as well as exterior lighting. Other optoelectronic devices such as image sensors (used mainly in mobile phones and digital cameras) are also being used to provide additional safety features such as lane departure warning and blind-spot assistance. Opto revenue from the automotive sector is expected to grow at a CAGR of 11.22% from 2009 to 2020.

Support from governments in countries like Japan and China is expected to boost the sales of solar cells. Incentives in these countries are given in the form of tax credits, relief or exemption. Japanese firms in particular undertake large-scale R&D programs in optoelectronics, which are supported extensively by the Japanese government. Meanwhile, China plans to generate 10GW of energy from solar cells by 2020. The Chinese government subsidizes the costs of installing solar energy systems on buildings. Solar technology, which was previously limited to applications in satellites, is now being used in a wide range of industrial and home applications, summarizes the report.

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