Revenues for LED modules in lighting applications are expected to increase at a compound annual growth rate (CAGR) of 32.8% to $7.8bn by 2019, according to Strategies Unlimited’s first report on the global LED module market.
‘The Worldwide Market for LED Modules’ analyzes the market for LED modules used in backlighting and lighting, providing forecasts for modules used in nine lighting applications including troffers, downlights, street lights, and retrofit lamps.
Backlighting will comprise a larger portion of the module market through 2018, at which point saturation plus increased usage by luminaire manufacturers of third-party LED modules will allow the lighting portion to surpass it.
The lighting end-applications that will see the largest growth in LED modules will be troffers, area lights, and street lights. “The large installed base of troffers and high/low-bay luminaires means that. although the penetration of modules within LED troffers and LED area lights is lower than for downlights, the sheer size of the installed base means more potential for LEDs and strong growth for LED modules,” says research analyst Stephanie Pruitt.
Prices for LED modules in lighting will fall as the overall price of the luminaire also falls. However, it is anticipated that, as LED modules continue to evolve (allowing simplified design and production as well as interchangeability), they will make up a larger portion of the overall luminaire cost. “What we are seeing now is a split in the market between basic packaged LEDs on a PCB to really high-end modules which also have optics and thermal management on board,” notes Pruitt. “Currently, there is not much standardization in the market, and so the majority of manufacturers are producing modules on a custom basi,” she addss.” As the LED lighting market continues to grow, more integration will help with the adoption and streamlining of LED modules, which will allow for healthy growth.”
North America and Europe will see strong LED module growth in professional applications that require high light quality, the report forecasts. The large installed base and continued new construction in China will drive unit growth there, but its lower average selling prices (ASPs) mean that it will only be the third largest market in revenue terms by 2019.
