August 19, 2014…The 2014 lighting end market is expected to comprise about 35 percent of all revenues from packaged LEDs, according to IHS. IHS points at that for the first time, the end lighting market for packaged LEDs is greater than the market for packaged LEDs in all backlighting combined. In 2013, backlighting and Lighting each accounted for 31 percent of market revenue, IHS indicated. IHS forecasts that Mid-power devices will make up about 48 percent of packaged LED revenue in lighting applications in 2014 and 81 percent of units sold.
The market has changed drastically in recent years. Back in 2010, high power LEDs such as 1-watt devices dominated the market, IHS noted. In the west, the percentage of revenue from mid power LEDs is lower. IHS found that in Asia however, the percentage is higher. The company points out that numerous Chinese suppliers that sell LEDs to their large domestic market primarily produce mid-power LEDs.
From 2011 to 2013, the market for mid-power LEDs grew rapidly. IHS says that this rapid growth was driven by the attractive dollar-per-lumen ratio and the availability packaged LEDs previously used for backlighting. South Korean companies such as Seoul Semiconductor and Samsung initially led this trend. However, mid power LEDs are an essential part of the packaged LED portfolios of most global companies now. Other suppliers such as Cree, Lumileds, and Nichia have followed the trend, IHS says.
While Cree is the largest provider of packaged LEDs in lighting applications. Philips Lumileds is a close second. Despite this, competition from Asian companies has increased in last few years in lighting applications.
During 2015 and beyond, IHS predicts that the share of mid-power will continue to increase. Also according to IHS, the proportion of chip-on-board (COB) LEDs of the packaged LED market is growing and playing an increasingly important role because companies are designing completed lighting products for a wider variety of target end markets. IHS says that high-power LEDs are still popular in areas such as street lighting and should retain a strong presence in the market.
Excluding lighting, the rest of the LED market is almost completely flat from year–to-year. IHS predicts that the rest of the packaged LED market will remain flat until 2019. The lighting market, led by mid-power LEDs, will drive the growth, IHS contends.