August 7, 2014…Strategies Unlimited recently published its first report investigating the global LED module market, The Worldwide Market for LED Modules. The report provides detailed forecasts for modules used in nine lighting applications including troffers, downlights, street lights, and retrofit lamps. This report also breaks down the lighting market by major region and power of the LEDs used in the module.
Strategies Unlimited predicts that backlighting will comprise a larger portion of the modules market through 2018. Then, the lighting market will surpass it due to increased usage by luminaire manufacturers of third party LED modules. The company forecasts that revenues for LED modules in lighting applications are expected to have a CAGR of 32.8% and reach a total value of $7.8 billion by 2019. Troffers, area lights, and street lights will be the lighting end applications that will see the largest growth in LED modules, according to Strategies Unlimited.
Stephanie Pruitt, research analyst at Strategies Unlimited, said, “The large installed base of troffers and high/low bay luminaires means that although the penetration of modules within LED troffers and LED area lights is lower than for downlights, the sheer size of the installed base means more potential for LEDs and strong growth for LED modules.”
Strategies Unlimited forecasts that prices for LED modules in lighting will fall as the overall price of the luminaire also falls. However, the company anticipates that as LED modules continue evolving, simplified design and production and interchangeability will allow LED modules to make up a larger portion of the overall luminaire cost.
According to Pruitt, “What we are seeing now is a split in the market between basic packaged LEDs on a PCB to really high-end modules which also have optics and thermal management on board. Currently, there is not much standardization in the market and so the majority of manufacturers are producing modules on a custom basis. As the LED lighting market continues to grow, more integration will help with the adoption and streamlining of LED modules which will allow for healthy growth.”
The company predicts that Europe and North America will see strong LED module growth in professional applications requiring high light quality. In China, the company predicts that a large installed base and continued new construction will drive unit growth, but its lower average selling prices will make it only the third largest market in revenue by 2019.