The research firm, Strategies Unlimited, reports that revenues from the total packaged LED market reached $15.6 million in 2014, growing 7.6 percent compared to 2013. About 34 percent of total revenues came from lighting. The combination of display backlighting and mobile applications made up a nearly equal portion of the revenue at 35 percent. Strategies Unlimited predicts that the largest share of the total packed LED market, lighting, will reach 45% of total revenues by 2019. The firm expects lighting to have the largest growth of any sector with a 5-year CAGR of 14.3%.
The market for packaged LEDs in outdoor luminaires, commercial luminaires, and replacement lamps will see the greatest growth within lighting applications, Strategies Unlimited predicts.
According to Stephanie Pruitt, senior research analyst at Strategies Unlimited, “It’s no surprise that lighting is the largest sector and will remain the largest sector throughout the forecast. Within lighting applications, the general lighting categories make up nearly 75% of the total lighting revenues. The replacement lamps market and luminaire market are very large, and as LED adoption grows, packaged LED revenues in these segments will also grow.”
Packaged LED prices declined steeply from 2013 to 2014. While the majority of suppliers saw price declines of about 20%, some reported declines as high as 25%-30%, especially so for chip-on-board packages (COBs). The company says that despite these price declines, the continued adoption of LED lighting in commercial and residential applications has allowed for the largest growth of any sector.
Pruitt said, “LED lighting has yet to reach its tipping point. Prices continue to drop, rebates continue to incentivize, and manufacturers continue to come up with new and exciting ways to make LED lighting relevant and desirable. With LEDs, customers are able to install lighting where they never would have thought before, opening up new opportunities.” Pruitt concluded, “Smart, controllable lighting will also have an impact on adoption rates as this creates huge possibilities for the consumer - think energy savings, labor/maintenance savings, indoor navigation, and improved security. As a result, packaged LEDs in lighting will continue to be a growth segment.”
The firm also predicts that the packaged LED market for automotive applications is poised for strong growth as LEDs continue to be an option in headlamps and daytime running lights in both high-end and mid-range cars. Strategies Unlimited predicts that packaged LED revenues for exterior automotive lighting applications will have a CAGR of 15% from 2014 to 2019.