In 2013, the LED package market value was US$12.5 billion and is expected to reach US$13.39 billion in 2014, according to LEDinside.
Tablets and smartphones will still be highlights of the LED market in 2014. As for lighting applications, LED package value and lighting applications will greatly increase in 2014, with most evident growth in engineering, commercial and outdoor lighting markets. According to LEDinside, several changes in the LED application market are expected to occur in 2014.
The LED-backlit TV penetration rate will reach 95% by the end of 2013. However, affected by the saturated market penetration rate and slow down of TV sales, the LED-backlit TV market value will slump for the first time in 2014, LEDinside believes.
The firm also said LED tablet applications will still be the main growth driver in future backlight markets. Affected by traditional off-peak seasonality and high inventory levels, tablet shipments were lower than estimates in third-quarter 2013. Annual tablet shipment projections were lowered to 196 million, and annual shipment growth rates were down from earlier estimations in 2013 of 33.6% to 31.1%. This shows that tablet shipments have eased, and although future tablet growth is waning, there still is considerable room for growth compared to other IT products. LEDinside estimates the CAGR of tablet LED backlight applications will reach 8% from 2013 to 2017.
Additionally, dual-flash LED designs are expected to further raise flash LED demand, by increasing the LEDs used in 2013 by 27.3% to 1.44 billion units, and later to 1.7 billion units in 2014. LEDinside is observing whether other smartphone manufacturers will be following suit, and there is still a lot of room for imagination in the flash LED market.
LEDinside also believes the LED lighting market will show significant market value growth for LED package applications in 2014. Of these, growth in engineering, commercial and outdoor markets will be most evident. In addition, rising LED bulb, tubes and commercial lighting markets has led to huge demand for mid-power LEDs, especially as 5630 and 3030 packages (PKG) become the market mainstream. LEDinside projects the mid-power LED market value to surpass high power LED market in 2013 and 2014.
