Shipments of high-power LED chips used in streetlights, direct backlit LCD displays, spotlights, and other applications that require higher brightness are expected to grow at a CAGR of 13% between 2014-2017, according to DisplaySearch. The firm forecasts that high-power LED demand will increase from 18.5 billion in 2014 to 27 billion in 2017. Streetlights are forecast to have a 28% share of total high-power LED shipments in 2014, closely followed by TV backlights and spotlights with 27% each; however, streetlights are expected to dominate the high-power LED market in 2017 (41%), followed by spotlights (21%) and TV backlights (15%).
"The LED lighting source makes up a small part of the total material costs, and that is driving growth in high-power LED shipments," said Steven Sher, LED research analyst at DisplaySearch. "While prices for high-power LEDs are higher than prices for typical LEDs, these lighting systems are still affordable, and demand for energy-efficient, brighter lighting continues to grow, as energy costs rise."
To improve thermal conductivity, high-power LEDs now use a ceramic substrate, which has replaced polyphthalamide material formerly used in the manufacturing process. Glass lenses have replaced silicone lenses to reduce humidity. "Effectively managing the thermal issue is very important for high-power LED applications, because it influences the reliability of the technology," according to Sher.
"High-power LED boasts excellent sell-through, and we expect to see an increased penetration rate in the general lighting and display application category in 2014," Sher said. "Only few big LED component makers will continue to dominate the market, however, including Philips Lumileds, OSRAM, and Cree."
