Trade Resources Industry Views LEDs Rising From 60% of Overall Lighting Market in 2016 Then 80% in 2020 and 98% by 2025

LEDs Rising From 60% of Overall Lighting Market in 2016 Then 80% in 2020 and 98% by 2025

The LED lighting market grew 18.1% to $47,303m in 2016, accounting for almost 60% of global lighting, according to the report ‘Global LED Lighting Market (2017 Update)’, part of Frost & Sullivan’s Homes & Buildings Growth Partnership Service program. By 2020, LED lighting is likely to account for 80% of the total lighting market (creating an $80bn market), rising to 98% by 2025.

The residential LED lighting market in particular will see grow 16.7% year-on-year in 2017. However, although the residential, outdoor and retail sectors make the highest contributions at present, office, industrial and hospitality are expected to be future growth sectors.

LED market evolution continues with a steep decline in cost per unit, high energy-efficiency ratings, a market shift toward these lighting solutions, and favorable government initiatives driving adoption, notes the report. The Internet of Things (IoT) will disrupt the market, shifting focus from energy efficiency, product reliability and O&M costs to include controllability, connectivity and technology integration in smart buildings and smart cities.

“New technologies driven by IoT, such as light-as-a-service (Laas), will usher in connected lighting and living, enabling better energy management and new services and business models like financing and leasing,” says Frost & Sullivan’s Energy & Environment research analyst Sabnam Gafoor. “On the flip side, new business models and an influx of new players from the Asia-Pacific will make the future market a fragmented one.”

The Asia-Pacific region contributes the most to global market revenue. Express construction in many Asian countries, government endorsement of energy-efficient lights in India and China, and the existence of a large number of LED chip and package factories in China, Japan, South Korea and Taiwan are factors driving growth. Worldwide, the regions that will see the highest growth rates are India, Asia-Pacific, Latin America and Africa.

Frost & Sullivan notes that organic LEDs (OLEDs) are gaining popularity as a solid-state lighting (SSL) technology due to their ability to emit warm light over large areas, provide color comfort, and bring improved form factors to the lighting industry.

“To remain competitive and relevant in an evolving ecosystem, LED players should seek to improve manufacturing efficiencies by adopting a larger wafer size, utilize intelligent lighting through integrated control devices, implement active and passive cooling techniques for device longevity, and replace expensive substrate materials with cheaper alternatives,” concludes Gafoor.

Source: http://www.semiconductor-today.com/news_items/2017/apr/frostandsullivan_210417.shtml
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