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20 August 2015

LED components market in Japan to grow at CAGR of 9.3% to 2019

The LED components market in Japan is rising at a compound annual growth rate (CAGR) of 9.3% during 2014-2019, according to the report 'LED Components Market in Japan 2015-2019' from market research firm Technavio.

The Asia-Pacific region (APAC) is the major producer of LED components and is home to the four main manufacturing countries: Japan, Taiwan, China and South Korea (which account for an 83% share of the market).

Vendors are continuously enhancing lighting technology for LEDs to compete with organic light-emitting diodes (OLEDs). This advance in lighting should enable manufacturers to increase the efficiency and durability of LED components. The advance will also aid features such as voltage, consumption, and conductivity in the end-products. For example, the average luminous efficiency of high-end products is about 150lm/W. Vendors from other regions have produced more than 170lm/W, but components in Japan are slowly spanning the defined range, leading to steady growth in the market.

Since LEDs are energy saving and contain features that enhance sustainability, the Japanese government has proposed policy incentives to accelerate LED product promotion and encourage the use of LED lighting products, notes the report. The government has rolled out national policies to provide tax breaks to small- and medium-size enterprises (SMEs) on the purchase of energy-saving products, leading to growing margins for manufacturers. Also, many local governments (including Tokyo and Chiyoda) have launched subsidy programs wherein companies purchasing energy-saving products in accordance with the specified standards can apply for grants to install one-fifth of the amount.

Further, rising competition from countries such as China is one of the major challenges faced by vendors in the LED component market in Japan, says the report.

Key vendors covered include Epistar, Everlight Electronics, Huga Optotech, and Lite-On Optoelectronics. Other prominent vendors include Kingbright Electronics, Lextar Electronics, Opto Tech, Taiwan Semiconductor Manufacturing Co (TSMC), and Techcore.

Tags: LED market Lighting market

Visit: www.technavio.com/report/led-components-market-in-japan-2015-2019

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