21 February 2011

LED luminaire market to grow from $3.8bn in 2010 to $8.3bn in 2014

Growth rates among applications vary, but the global market for LED luminaires is expected to grow to $8.3bn by 2014, according to Strategies Unlimited’s ‘LED Luminaires, Market Analysis & Forecast’, which covers nine LED lighting application segments and analysis for 2008–2014.

The market research firm says that rapid improvements in the performance and price of commercially available high-brightness LED packages, heightened awareness about energy efficiency, the phasing out of incandescent bulbs, and fiscal stimuli undertaken by countries around the world have created conditions for the adoption of white-light LED technology, which otherwise would have faced the low-volume/high-cost conundrum. Quality issues that affected the market penetration of previous energy-efficient lighting technologies continue to affect this market, but the resolve to reduce energy consumption is likely to propel the technology to be widely commercialized and adopted by the market, reckons Strategies Unlimited.

As the most efficient light source technology for applications requiring a directional beam of light and batteries, consumer portable applications were the largest segment of the LED luminaire market in 2010. The quality of LEDs has improved to a point that performance is no longer an issue, says the firm. The issue now is the price of designing LEDs into luminaires.

Color and color-changing application in architectural and entertainment applications collectively had revenue of more than $1bn in 2010. Meanwhile, starting from a small base, residential lighting (the fastest-growing segment of the market) is forecast to grow at a compound annual growth rate (CAGR) of 44% through 2014.

Global revenue for LED luminaires in commercial/industrial applications are expected to exceed $1bn in 2011.

Outdoor area lighting applications (which have benefitted from fiscal stimuli and the need for energy conservation) are expected to grow at a CAGR of 38% through 2014. In particular, solar-powered lanterns will be a low-margin/high-volume application, assisted by non-governmental organizations (NGOs) and governments aiming to save fuel subsidies. Revenue for this sub-segment is forecast to grow at a CAGR of 58%.

In addition, LED exit signs have become a mature market in the USA, and are in the initial stage of market penetration in white-light applications in egress signage lighting outside the USA.

The report concludes that China is the largest market as well as the largest supplier of LED luminaires.

See related items:

LED lamp consumption for general lighting in US to grow at 27.6% to $1.64bn in 2015

Tags: LED luminaire market

Visit: www.strategies-u.com

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