LED Lighting Continues Growth to

10% Market Share in 2011

DIGITIMES

Last updated 12/08/2010

Lighting will generate significant growth for the LED industry. Based on latest data from Digitimes Research, the high brightness LED market will grow to US$12.6 billion in 2011, up 53% from US$8.25 billion in 2010. The overall use of LEDs in lighting will increase to 12.4 billion units in 2011 from 4.8 billion units in 2010, as the effects of LED light bulbs replacing incandescent bulbs will start to show in 2011.

Although lighting will not have a high share in the overall LED market, accounting for 3.2% of the overall LED industry value in 2010, major countries worldwide have laid down LED lighting policies and been actively promoting the development of the LED lighting industry because of growing environmental concerns.

Digitimes Research analyst Jessie Lin noted that global demand for LED light bulbs will increase significantly from 596 million units in 2011 to 2.5 billion units in 2013. Due to trial projects in many major cities in China, US and Europe, LED streetlamps will increase to 9.8 million units in 2013 from 2.2 million units in 2011.

With major countries promoting LED lighting, LED lumen efficiency has been improving significantly, and the prices for LED lighting are estimated to drop by 20-30% every year. Lin estimated that LED lighting demand will increase at a CAGR of 97.4% from 2009 to 2013, higher than the CAGR of 62.6% for LEDs used in large-size LCD backlighting in the same period. The overall LED lighting market will reach US$15.4 billion in 2011, and LED lighting devices will account for 10.6% of the overall lighting market in 2011, Lin said.

Source: Digitimes Research, December 2010