With the steady increase in the usability and efficiency of LEDs over traditional light bulbs during the last decade, the global market for high-brightness LEDs is projected to rise at a compound annual growth rate (CAGR) of 17.9% from nearly $46.4bn in 2014 to $105.5bn in 2019, according to the report 'Light-Emitting Diodes (LEDs) for Lighting Applications (SMC018E)' from market analyst firm BCC Research. LEDs for general illumination applications have the highest growth rate of any major segment, with a CAGR of 22% between 2014 and 2019. By 2019, shipments of LED for general illumination should reach $89.2bn, or nearly 85% of the overall LED market.
The North American, European and Asia-Pacific regions have traditionally been the largest consumers of high-brightness LEDs. Over the forecast period, Chinese consumption will grow most rapidly. This migration follows the path of other products that China initially produced and then sold to the general population. By the end of the forecast period, China’s percentage of consumer use will have nearly doubled, forecasts the firm.
Lighting is one of the most widespread, important and growing energy users. In the USA, recent data indicates that slightly more than 12% of electricity and 6% of all energy is consumed just to provide lighting, says BCC. Global production of energy for lighting is about 3400TwH annually (the equivalent of about 1700 power plants). Related carbon emissions are estimated to be over 400 million tons per year. Improvements in lighting efficiency should therefore have an important economic and environmental impact, adds the firm.
“LEDs already exceed the estimated life spans of conventional lighting systems and, coupled with their environmental advantages, they represent a big step into the future,” comments analyst Andrew McWilliams. “Solid-state lighting could affect many phases of industry and consumer markets, as well as affect savings in dollars and environmental waste.”
