The report ‘Global LED Market 2016-2020’, provides an analysis of market growth in terms of revenue and emerging market trends, looking at segments such as general lighting, backlighting, and automotive lighting. With several governments around the world banning the use of incandescent bulbs, including China, and promoting the adoption of LED lights, the market for LEDs has a positive outlook in the coming years, think the analysts.
A fall in the demand for LED products for backlighting has led to a sharp decline in the average selling price of LED chips and other LED products. During the forecast period, manufacturers are anticipated to continue to explore cost-cutting solutions for LEDs.
Besides lowering the prices of LED chips, LED manufacturers will start evaluating whether the prices for LED drivers and other LED components can be further reduced. Manufacturers are envisaged to come up with a cost reduction solution through the overall system design, which will lead to the augmented adoption of LEDs over the next four years, according to Technavio.
During 2015, the general lighting segment dominated the market and accounted for more than 40% of the market share. Factors such as increasing installation of LEDs for street lighting and government initiatives to distribute LED bulbs to domestic consumers at a subsidized rate are contributing to this segment’s growth until the end of 2020.
In terms of geography, the APAC region led the global LED market and is likely to reach close to USD 15 billion by 2020. Factors such as rapid construction in many Asian countries, government incentives in countries such as India and China to promote energy-efficient lights, and the presence of a large number of LED chip and package factories in China, Japan, South Korea, and Taiwan to aid in the growth of this market in the APAC region.
“China supports the largest LED industry in the world and accounts for close to 30 percent of the world production, thanks to tax benefits and subsidies provided by the government to its manufacturers. Even the government of India has launched similar projects for promoting energy conservation, and it is likely to draw massive investments into the sector during the forecast period,” said Asif Gani, one of Technavio’s lead analyst for semiconductor equipment research.
According to the market research firm, the LED market in the general lighting segment was valued at $5.76 billion in 2015, the residential market being the largest revenue contributor where LED lights come as the best replacement option for fluorescent lights. The company valued backlighting, the second-largest LED market, at $4.15 billion in 2015.
The LED market in the automotive lighting segment was valued at $1.86 billion in 2015, daytime running lights and high-low beam headlights representing the two major applications with high growth expected during the forecast period.
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