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High Power LED Market Overview
The global high power light-emitting diode (LED) market generated $12,647.2 million revenue in 2018. The market is further expected to grow at a CAGR of 5.3% during the forecast period (2019–2024). This is primarily on account of government initiatives promoting energy efficiency and energy conservation, and growing demand for high power LEDs in automotive applications, across the globe.
Based on wattage, the high power LED market is classified into 1–2.9 W, 3–4.9 W, 5–10 W, and >10 W. Among these, 3–4.9 W category held the largest revenue share in the market in 2018. This is attributed to large-scale adoption of high power LED lights in general, automotive, and sign & signal lighting applications. The category is expected to maintain its lead throughout the forecast period, buoyed by the rising deployment of 3–4.9 W high power LED lights in indoor lighting and outdoor lighting systems in residential, industrial, and commercial areas.
On the basis of application, the high power LED market is categorized into automotive, general lighting, backlighting, signs & signals, and others; wherein, others include camera flash lighting, infrared emitter, and ultraviolet (UV) LEDs. Of these, the general lighting category held the largest revenue share in 2018; attributed to the rise in sales of spotlight, downlight, tunnel light, area light, and industrial light. In addition, the demand for high power LEDs in backlighting application, which includes gaming, channel letter lighting, and portable appliances, has increased significantly and is projected to grow steadily during the forecast period.
Geographically, the Asia-Pacific (APAC) region held majority share of the high power LED market in 2018. China, India, and Japan are the key APAC countries contributing significantly to the market growth. This is due to the growing demand for energy-saving and eco-friendly lighting products in application areas, such as roads, railways, and buildings. For instance, in February 2019, the Chinese government announced an investment of $120 billion in railway construction to improve rail facilities in the country. Further, the development of smart cities in the country would bolster the demand for high power LEDs in the country.
High Power LED Market Dynamics
Key trend observed in the high power LED market is the growing popularity of smart LED lights, owing to their higher energy efficiency and ability to be controlled from anywhere at any time by using smartphones and tablets. In addition, adaptive lighting and motion activation technology would increase the cost savings for households and businesses by reducing power consumption over conventional lights. Moreover, users can change the lighting colour as per their choice, which can improve the indoor environment using these lights.
Increasing adoption of energy-efficient lighting solutions is driving the growth of the high power LED market. This is due to the fact that high power LED lights consume less energy and work efficiently for long operating hours at low maintenance cost, unlike conventional lights. In addition, high power LED lights have greater lifespan than other types of lights. Therefore, the adoption of high power LED lights would support the growth of the market, globally.
One of the major opportunities for players operating in the high power LED market is upcoming sports events, across the globe. High-efficient LED lighting systems with good quality illumination are essential for sports events like cricket, football, hockey, basketball, and lawn tennis. LED-based floodlights ensure good visibility, enabling players to play in good condition and spectators to enjoy the game.
Sports events, such as the Olympic Games 2020, the Winter Olympics 2022, the ICC Cricket World Cup 2023, and the AIBA World Boxing Championships 2019, are scheduled to take place, which would increase the demand for general lighting across the globe. As high power LED lights are more durable, long-lasting, and energy-efficient than other lights, the demand for these LED lights would increase in the coming years. Hence, the global upcoming sports events would boost the growth of the high power LED market during the forecast period.
High power LED Market 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.