LED market to grow by 12% in 2008

Strategies Unlimited predicts that the LED industry is emerging from a slow growth phase, and that the total market size in 2012 will exceed $11bn.

The market for packaged high-brightness LEDs is set to grow by 12% in 2008, according to a market update presented by Bob Steele at the 2008 Strategies in Light conference in Santa Clara, California.

Steele said that the market grew by 9.5% in 2007 to reach $4.6 billion, somewhat higher than the 6% growth in 2005 and 2006.

In the next five years, further acceleration in growth is expected as applications outside the mobile phone market come to the fore. Steele predicts a CAGR of 20% in the next five years, with a total market of $11.4 billion in 2012.

Steele predicted that the largest application in 2012, with 44% of the market, will be Signs & Displays, which includes backlighting for large LCD screens (monitors and TVs). For 2007, the largest segment was Mobile Appliances, with 44% market share. However, the largest growth was seen in the Illumination and Signs & Displays markets.

Solid-state illumination accounted for 7% of the market, or $320 million, in 2007, and this figure is expected to grow to nearly $1.37 billion by 2012. Steele said that energy-efficiency is a major driver for moving LEDs into the general (white) lighting market, but products must deliver value on a cost-of-ownership basis, and must have proven LED fixture efficiency and lifetime to win customer acceptance.

Between 2004 and 2007, unit shipments have increased by 26% per year to around 39 billion units, while ASPs (average selling prices) have fallen by around 16%. Overall, the product mix has shifted quite dramatically, with high power packages now accounting for 10% of the market.

In its ninth consecutive year, Strategies in Light, the leading event for the global LED industry, attracted more than 1000 visitors to the conference and exhibition. Next year's event will take place on February 18-20, 2009.

Strategies Unlimited also announced that the first Strategies in Light Japan event will be held in Tokyo on October 16-17, 2008.

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