Global LED Lighting Market

The application of LED is increasing across different verticals of business. Manufacturers are providing cost effective LED solutions to the industries for source of light.

Definition / Scope

LED known as Light Emitting Diode is a source of light, when a suitable voltage of electricity is getting contacted to the semiconductor. The visibility of LED ranged from low range to visible ultraviolet, infrared wavelength to high brightness. The material used in the semiconducting element. The PN junction area in LED is customised according to the application.

LED are used in all categories of devices like digital clocks, remote controls, Television screen, traffic light and the list goes on. The lifespan of LED is more than the traditional incandescent bulbs. LED bulbs are used in the famous constructions like CN Tower, Singapore Flyer, Eiffel Tower, Tower Bridge and the list goes on.

Advantage of LED

The life span of LED is high.
LED are considered as the efficient source of light.
They don’t generate heat.
LED are found to be cost effective solution for many devices.
LED are durable due to which they are used in many devices.
The emission of light is not affected by the environment factors.
LED produces negligible UV light.
LED can produce light at lower voltage.
LED are environment friendly because it does not use any gas nor mercury for producing light.
LED are available in a variety of base colours as Red, Blue, Green and Amber.

Segmentation of LED market

Manufacturers

The companies which converts the raw materials into workable LED at different shapes and sizes. This manufacturers supplies directly to the companies, channel partners or system integrators.

Channel Partners

This companies are the distributors of the LED to system integrators for further processing as well as the retail sector.

System Integrator’s

This companies applies LED to the devices for various applications like mobile phones.

Application of LED

LED is being used across different applications for providing source of light. Its high durability and low voltage consumption have led to the increase in the spectrum of devices. There are many electronic devices which have accelerated due to the use of LED in the system. Below consists of some of the products where LED have contributed as a source of light to the device.

LED TV

The success of LCD TV’s was completely dependent on the LED because of low heat in thin space.
LED shines lightly behind the screen creating a clear image in front of the screen with wide colour range for display.
LED makes TV more durable.
It consumes 40 % less power than the traditional TV.
The brightness and colour of the LED can be controlled.

Auto

LED are used as the indicator light like status light, warning and security lights in the interior.
They are used as the tail and front lights for indication in the exterior.
Smaller and compact in size.
Brighter light used in less power.

Mobile Devices

LED are used as flashlights and flashes.
LED are compact and transmits light at lesser power which is used as video light.
LED flash does not produce significant electromagnetic interference.
LED in the mobile phones use less circuit for light emission.
It consumes less energy increasing the battery life of the mobiles.

Electronic Equipment

LED are used in many electronic devices as warning lights and indicators.
LED requires less amount of space which makes it feasible application for indication.
LED consumes less amount of power for light generation.
LED has a longer life because of less heat.

General Lightning

LED are used in billboards, bridges, roads and landmark lightning.
The colour of the light is rich and controllable.
Less power and higher display of light from LED.
LED can withstand rough conditions.

Home Use

Consumes less power and saves electricity bills.
LED lights are free from toxic chemicals making it safe.
LED lights can be combined to any shape making it more attractive for home use.
LED lights gets activated instantly when the power is turned on.
Longer life is the biggest advantage for home application.
LED lights are coming in different shapes and sizes adding design to the household.

Market Overview

The advantages of using LED as a source of light has led to the increase in the production by the manufacturers across the globe. This has increased the competition in the LED market leading to the innovation in the industry.

From the boom of LED in 2000, LED has been used across different applications. Decreasing prices of the LED due to improvement in technology has added advantages for adaptation.

The above diagram shows the global LED market based on the application of use. Signal, signage and outdoor advertising are the topmost market for LED followed by automotive lightning for indicator lights.

The global LED market is estimated to be $29.908 billion growing at the rate of 25% according to the Digitimes Research. There would 1.81 billion LED light bulbs, 520 million LED light tube, 1.035 billion LED projection lamps shipped globally.

The above diagram displays the projected growth rate of 13.5% till 2020 based on the increasing demand of the LED globally. The market value of LED is estimated to reach $42.7 billion by 2020. There would be consistent growth of LED demand in the commercial as well as the household sector across the globe.

USA and Canada are the leading countries in North America from the automotive and construction industry with a growth rate of 15.3% followed by Europe and Asia Pacific and the trend is going to be continued till 2020.

Manufacturing of LED

Asia is considered as the manufacturing hub of LED due to the easy availability of raw materials and the support from the government. Japan leads the competition with 30% market share followed by Korea, Taiwan, Europe and US.

Japan

Japan was the front runner in the LED industry since 2000.
The government implemented the strategy of energy saving technology which gave to rise of mass production of LED to meet the demand of the people in the country as well as in the international market.
The ban of the usage of incandescent light in the country led to further increase in the production.
Mergers and acquisitions of the international companies to gain access in different market globally.

China

In order to gain market share in the LED industry, Chinese government is offering tax benefits for setting up companies manufacturing LED.
The government is offering land and easy credits for further expansion in the industry.
Mass production of LED are made by the manufacturers satisfying the demand of the industry.
China has made manufacturing as one of the pillar for clean energy for industry focus.
China government focus to increase the global LED market share to 25%.

Taiwan

Taiwan is considered to be one of the IT manufacturing hub in the world, which supports LED production.
The companies in the country are producing niche products like insect lamps, resin curing and many more increasing the dimension of application of LED.
The companies are producing more clean energy LED making it competitive in the global market.

Korea

Korea is increasing the LED market from producing premium LED to low cost LED.
The companies are adopting vertical integration for control of the cost in the supply chain.
LED is the background for the manufacturing giants like Samsung.
South Korea main focus is manufacturing high luminance white LED for automotive and lighting application making it the major global player in its vertical.

Europe and North American

Companies are having mergers with the Asian manufacturers for reducing the cost of production and innovation in the LED.
The primary focus of the manufacturers of this regions is to satisfy the need of their geography.

Other regions

The main strategy of other regions is to import lights from the major manufacturing countries.
Allowing the global LED manufacturers to setup plant for producing LED lights.

Major companies in LED Manufacturing

Endo Lighting Corporation
Nichia Corp
Philips Lumileds Lighting Co
Osram Opto Semiconductors GmbH
Samsung Electronics Co Ltd
Seoul Semiconductor Co Ltd
COB LEDs

Top Market Opportunities

Governments are offering tax incentives to the LED Manufacturing companies.
Lands are allocated for setting up manufacturing plant for LED.
Expansion through mergers and acquisitions to gain access to different regions.
Loans are provided by the banks at concessional rates to the LED industry.
Companies are converting to vertical integration for reducing the cost of LED.
Government are banning the usage of incandescent light increasing the growth of the LED in commercial as well as household sector.
Trade fairs are conducted for LED industry to display innovative products by different companies across the globe.

Market Outlook

In the TV display industry, LED is getting converted to OLED whose production costs will be reduced by three folds.
Innovations are made to make LED as one of the clean energy in the world.
Wireless technology is being created for the control of LED light.
Companies are making LED with maximum efficacy for different devices.
Lighting application is becoming more important sector for the LED manufacturers.
More creative designs are made in LED applications for interiors of the household.
Increase in the competition will lead to the decline in the prices of LED which will increase the demand globally.
Research are conducted to improve the capability of the emission of light from LED.