The packaged LED lighting market is forecast to reach a compound annual growth rate (CAGR) of 11%, from 2013-2019, while the market for LED modules used in lighting will reach a CAGR of 23.9%, over the same time period, according to IHS.
Riding the trend toward integrated products, many LED makers are increasingly turning to modules, as a way to boost revenues and profits. Chip on board and LED light engines are two examples of integrated products that are experiencing rapid growth. Cree, Seoul Semiconductor, and other LED companies - as well as Harvard, BAG, Tridonic and other power companies - are also active in the market.
"LEDs used in lighting have become commoditized in many applications, and price declines in the last three or four years have been worse than expected," said Jamie Fox, principal analyst for IHS. "With MLS and other China players increasingly entering the market, competition will remain tough."
Component makers are increasingly looking beyond the metrics of lumens/$ and lumens/W as competitive differentiators. LED modules and light engines are a logical step for many companies looking to improve their profit margin, diversify to ensure future stability and meet the demands of their customers.
The combined market for LED modules and light engines in lighting applications is projected to reach US$1.3 billion in 2014, added IHS.
