Future of LED adoption looks bright
LEDs continue to be a bright spot in the recovery economy. ISuppli Corp this morning reported that the 2009 holiday season is setting up double-digit sales growth in the use of LEDs for general illumination that will see a near doubling in market revenue by 2013.
The market research company noted that multiple retailers are actively promoting LED lights for indoor and outdoor decorative illumination applications. Also, LED lights with Edison sockets used for replacing conventional light bulbs are starting to appear on store shelves, making them a viable choice for general illumination applications, iSuppli said.
“The LED industry is on the threshold of a new expansion phase—a phase that will be characterized by growth rates in the high double digits during the next three years,” said Jagdish Rebello, director and principal analyst at iSuppli, in a report. “This growth will be driven by the increased adoption of high brightness (HB) and high flux—also referred to as high power or ultra high brightness (UHB)—LEDs into a new range of next-generation lighting applications.”
According to iSuppli data, global LED revenue will expand by 10.9% in 2009 to reach $7.4 billion, up from $6.7 billion in 2008. Meanwhile, iSuppli pointed out that the overall semiconductor market is expected to contract by 12.4% in 2009 because of the slowdown in the global economy. By 2013, the global LED market will reach $14.3 billion, nearly double from 2009, the company estimated. (See chart below)
ISuppli also made specific note of the SSL (solid state lighting), reporting that that market for HB and high-flux devices will outpace overall LED market growth through the year 2013. Over the next three years, revenue generated by the traditional market for standard-brightness LEDs will decline by about 2.5%, while the market for HB LEDs will grow by 6.7% to approximately $5.4 billion. The market for high-flux LEDs grew by almost 53% to reach $7.8 billion, iSuppli said.
Looking to the future of general illumination, iSuppli said the development of high-flux LED light bulbs with luminous efficacy exceeding 100 lumens per watt and designs that allow LEDs to run on AC current without the need for an inverter are moving LEDs closer to adoption in the mainstream general illumination market. Further helping adoption along, LEDs already are being used in various indoor and outdoor decorative illumination applications, are just starting to target the market for general lighting in homes and enterprises, and SSL legislation around the world is increasingly seeking to ban the use of incandescent light.
“ISuppli projects that LED light bulbs will address the residential and enterprise general illumination market in earnest in 2010,” Rebello said. “Without a doubt, the long-term future of general illumination is LEDs. The market is expanding and investments in innovative designs and creative solutions are worthwhile.”
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