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13 July 2007


Analysts forecast seven-year wait before LEDs penetrate home lighting market

Market research firm Strategy Analytics forecasts a 21% growth in the market for solid-state LED lighting through 2011, with most of the demand coming from niche lighting applications, rather than from the residential lighting market.

According to the firm’s report "Solid State Lighting Market 2006-2011," as of the beginning of 2007, the market for solid-state lighting (SSL) in the illumination market had zero penetration.

The firm predicts that the global lighting market will increase at a compound annual average growth rate (CAAGR) of 4% through 2011, with solid-state lighting (SSL) technologies penetrating no more 3% of the total market in 2011. Significant implementation in residential and consumer markets is not expected until 2014 or 2015, adds the report.

"Environmental concerns are making an impression on consumers who are beginning to look for environmentally beneficial lighting products. They will buy only when products reach the right price point," said Stephen Entwistle, VP of the Strategy Analytics Strategic Technologies Practice. "The long and slow adoption of energy-saving compact fluorescent (CFL) light-bulbs must be acknowledged when making optimistic forecasts for the solid-state lighting market."

"In addition to the commercial challenges, there are also technical challenges that need to be overcome. One such obstacle is the ability to guarantee consistent quality of the white light over the life of the lamp." adds Asif Anwar, director of the GaAs service. "In the near term, emerging demand from other markets, such as automotive, aviation and medical, will help spur development in the general illumination market."