High Power LED Market Research Report by Wattage (1–2.9 W, 3–4.9 W, 5–10 W, >10 W), Application (General Lighting, Automotive, Signs & Signals, Backlighting), Geographical Outlook (U.S., Canada, U.K., Germany, France, Italy, Russia, Spain, The Netherlands, China, India, Japan, South Korea, Australia, Indonesia, Thailand, Malaysia, Brazil, Mexico, Argentina, Colombia, Saudi Arabia, South Africa, U.A.E., Nigeria, Turkey, Qatar) - Global Industry Trends and Forecast to 2024

Market Outlook

High power LED market revenue stood at $12,647.2 million in 2018, and it is projected to advance at a CAGR of 5.3% during 2019–2024. The market thrives on the widening application base of LEDs in the automobile industry and increasing number of government initiatives that promote energy conservation and efficiency.

The 3–4.9 Watts (W) category, within the wattage segment, accounted for the major share in 2018 due to the wide adoption of 3–4.9-W high-power LED lights in automobile, sign and signal, and general lighting applications. Moreover, the increasing usage of these lights in indoor and outdoor lighting systems in industrial, commercial, and residential areas will lead to the dominance of this category in the coming years.

In 2018, the general lighting category generated the highest revenue within the application segment of the market for high power LEDs owing to the surge in the sales of spotlights, industrial lights, downlights, area lights, and tunnel lights. Moreover, in the coming years, there will be a considerable demand for high-power LED lights in backlighting applications, including gaming, portable appliances, and channel letter lighting.

Asia-Pacific (APAC) accounted for the largest revenue share in 2018, wherein India, China, and Japan were the key contributors. The growth of the high power LED market in these countries can be credited to the booming demand for eco-friendly and energy-saving lights in buildings, roads, and railways. For instance, in February 2019, the Government of China announced plans to invest $120 billion in railway construction to enhance the rail facilities in the nation. Besides, the development of smart cities in China would amplify the demand for high-power LED lights in the country.

Market Dynamics

Smart LED lights have become a major trend in the high power LED industry. These lights are being widely adopted due to their high energy efficiency and ability to be controlled through smartphones and tablets from anywhere, at any time. Besides, the adaptive lighting and motion activation technologies of smart LED lights help in reducing the financial burden on households and businesses because they consume lesser power than conventional lights. Apart from this, users can improve the indoor environment by altering the color of the lights according to their choice and mood.

The growing adoption of energy-efficient lighting solutions is the most-prominent growth driver for the high power LED market. Unlike conventional lights, these lights consume less electricity and work efficiently for long hours at low maintenance costs. Additionally, these lights have a greater lifespan than other types of lights.

Upcoming sports events are creating lucrative opportunities for the market players. High-power LED lighting systems with a better illumination quality are quintessential for sports events, such as basketball, cricket, hockey, lawn tennis, and football. LED floodlights enable sportspersons to play in good conditions and spectators to enjoy the game, by ensuring good visibility.

Sports events, such as the 2019AIBA World Boxing Championships, 2020 Tokyo Olympic, 2022 Winter Olympics, and 2023 ICC Cricket World Cup would boost the demand for general lighting worldwide. Owing to the high durability and energy efficiency of high-power LED lights, they would be preferred over other lights in the coming years.

Competitive Landscape

The high power LED market is highly fragmented, due to the presence of a large number of global and regional market players. Companies, such as Nichia Corporation, Osram Licht AG, and Lumileds Holdings B.V., are the leading players in the market. These companies are strategically focusing on introducing new LED lighting products to improve their position in the market. For instance, in May 2019, Lumileds Holdings B.V. introduced two new additions to its LUXEON chip on board (COB) LED family, such as the LUXEON COB Core Range and the LUXEON COB with CrispWhite Technology. These two COB product ranges can deliver a minimum of 95 color rendering index (CRI) for the applications, such as indoor and retail lighting.

Some of the other key players operating in the global high power LED market include Cree Inc., Samsung Electronics Co. Ltd., Seoul Semiconductor Co. Ltd., Everlight Electronics Co. Ltd., MLS Co. Ltd., LG Innotek Co. Ltd., Broadcom Inc., and Epistar Corporation.