IMS Research reports record $4BN, 67% growth in 2010 LED market

Jan 14th, 2011
Date Announced: 14 Jan 2011

Wellingborough - The packaged LED market grew from $6.1 billion in 2009 to $10.2 billion in 2010, a revenue growth of 67%, according to IMS Research’s new report, “The World Market for LEDs”. The $4.1 billion increase in 2010 versus 2009 is by far the largest in the history of LEDs. The 2010 market size is still preliminary at this stage and may be revised in February as we assess the latest reported data.

The boom in 2010 was primarily due to a tremendous growth in LED use in backlighting LCD TVs. IMS Research analyst Jamie Fox stated that, “Packaged LED sales for TVs grew from $0.4 billion to $2.5 billion as LED penetration increased dramatically to 27% in 2010.” The $2.1 billion increase accounted for half of the growth. Growth was further driven both by economy recovery (which particularly affected some sectors in 2009, notably automotive and industrial) as well as an increase in sales for backlighting notebook computers and desktop monitors. Finally, general lighting made its most significant contribution yet in 2010.

The boom year of 2010 is not likely to be repeated again as mature markets return to a flatter or steadier growth level, and backlighting markets saturate. IMS Research forecasts 25% growth in 2011, and somewhat lower in 2012. All major backlighting applications including TVs are forecast to be at or very close to 100% LED penetration in 2013.

From 2013, LEDs in general lighting are forecast to account for most growth. Indeed, with general lighting excluded, LED revenue will decline after 2013 due to price erosion, more efficient LEDs (meaning less are required) and market saturation. The next few years could therefore be a challenging period for some manufacturers in the LED industry, possibly leading to some consolidation.

However, due to the huge potential of general lighting applications, the long term future of LEDs remains bright due to applications such as hotels, retail, residential and outdoor lighting such as street lighting.

About IMS Research

IMS Research (www.imsresearch.com) is a supplier of market research and consultancy services on a wide range of global electronics markets. The company headquarters is in Wellingborough, UK with offices in Austin, Texas; Seoul, South Korea; Taipei, Taiwan and Shanghai, China. IMS Research regularly publishes detailed research on the LED market, among others.

Contact
Jamie Fox LED Research Manager IMS Research Tel: +44 1933 402255

E-mail:Jamie.Fox@IMSResearch.com

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