MOUNTAIN VIEW, Calif.—The market for packaged high-brightness light-emitting diodes (LEDs) is set to grow by 12 percent in 2008, predict market researchers at Strategies Unlimited in Mountain View, Calif.
The LED industry is emerging from a slow-growth phase, and the total market size by 2012 will exceed $11 billion, according to a market update by Strategies Unlimited’s Bob Steele at the recent 2008 Strategies in Light conference in Santa Clara, Calif.
The LEDs market grew by 9.5 percent in 2007 to reach $4.6 billion—somewhat higher than the 6 percent growth in 2005 and 2006, Steele says, adding that he expects further acceleration in growth in the next five years, primarily from applications other than mobile phones.
Steele predicts a 20 percent combined annual growth rate for LEDs in the next five years, with a total market of $11.4 billion in 2012.
 The LED market may reach $11 billion by 2012. Pictured is an LED array from Cree Inc. |
The largest application in 2012, with 44 percent of the market, will be signs and displays, which include backlighting for large liquid crystal displays in computer monitors and flat-screen televisions, Steele says.
Solid-state illumination accounted for 7 percent of the market, or $320 million, in 2007, and this figure is expected to grow to nearly $1.37 billion by 2012. Steele says that energy-efficiency is a major driver for moving LEDs into the general (white) lighting market.
Between 2004 and 2007, unit shipments have increased by 26 percent each year to around 39 billion units, while average selling prices have fallen by around 16 percent. Overall, high-power packages now account for 10 percent of the market.
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