The first quarter is a traditional low season and the pricing of LED components used in backlighting and lighting products is expected to fall. In particular, medium-size LEDs used in lighting will see continuous price falls in 2013.
Industry sources believe that despite that LED-backlit TV penetration rates may reach 90% in 2013, due to the fewer number of LEDs being used, and falling shipments of notebooks and monitors, the output value percentage of large-size backlight products among total output in 2013 is expected to fall.
According to Digitimes Research, the percentage of medium- and large-size applications of LED backlighting products is forecast to fall to 27.6% in 2013.
Due to continuous price falls of LED backlight products, the penetration rate of applications in all panel sizes is expected to reach a peak in 2013. In particular, the penetration rate of LED backlighting in monitors is expected to increase to 92% in 2013 from 70% in 2012. According to market research institutes, due to weakening demand for monitors, the average price fall of LEDs used in monitors in the first quarter of 2013 is expected to be around 4-8%. The price fall of LEDs used in direct-lit LED TVs and side-lit LED TVs are forecast to be around 3-5% and 4-5%, respectively, according to market research institutes.
Due to price competition from South Korea-based firms, the price of mid-power LEDs showed an average price fall of around 7% in the fourth quarter of 2012. The price fall has attracted lighting firms to use mid-power LEDs in light bulbs and tube lighting. The price fall of mid-power LEDs also affected the prices of high-power LEDs as the latter are forecast to face an average price drop of 6-9% in the first quarter of 2013.
Digitimes Research predicted that the retail prices of LED lighting are likely to fall by 20% in 2013. In addition, the global LED lighting market output value is forecast to reach US$25.4 billion in 2013, representing an on-year growth of 54% compared to US$16.5 billion in 2012, said Digitimes Research. Furthermore, the global penetration rate of LED lighting is estimated to reach 18.6% in 2013.
US-based upstream LED firm Cree recently introduced 40W white light LED light bulbs with retail prices of only US$9.97/unit and 60W warm white light LED light bulbs with retail prices of US$12.97/unit. This means Cree is set to expand business into the consumer lighting market.
