IHS analysts wax on infrared LED and lighting equipment revenues

Market news |
By Julien Happich

Whereas the former grew 19.8 percent year over year in 2015 from $201.5 million in 2014 to $241.4 million in 2015, the infrared components market declined by 9 percent in the same period.
According to Jamie Fox, principal analyst, IHS Markit, the growth is attributable to increased adoption of biometrics security in mobile phones, close-circuit television and other consumer applications. The leading suppliers named in the report were Osram, Everlight and Vishay were the leading suppliers in 2015.

According to Fox, “The forecast compound annual growth rate of 8.4 percent for infrared LEDS — from 2015 to 2021 — compares favourably to overall growth in total infrared component of 4.2 percent. The total market also includes slower-growth categories like photodiodes and phototransistors, Infrared Data Association (IrDA) transceivers and infrared receivers.”

The growth is predominately seen in growing use in CCTV camera and biosecurity in smartphones, tablets, laptop PC and video game consoles. Touchscreens in POS terminals and ATM machines are also applications that are growing. In these cases, the displays are triggered not as direct impact of touch as in the past, but where LEDs are placed along the display’s sides and touch is detected by infrared signal interruption.  The benefit is that this technology isn’t as likely to wear out as with the earlier version.

Source: IHS

The second report, by Paul Bremner, senior analyst, IHS Markit, Lighting Intelligence Service, shows that global revenue for lighting equipment grew 4.6 percent in 2015, down from 4.8 percent growth in 2014.

However, Bremner explains that while lamp market revenue grew 4 percent in 2015, which was lower than the 7.3 percent revenue growth in 2014, it was higher than previous IHS Markit revenue forecasts through 2023. “As the lamp market continues to transition to LED, there are two effects combining to mute future revenue growth: an overall decline in lamp shipments, and price erosion of LED lamps.

As customers switch to LED technologies that have much longer lifespans than traditional technologies, fewer replacement lamps are required, resulting in lower shipment levels. As prices for LED lamps fall, manufacturer revenue will also begin declining in 2019.”

Bremner also reported that luminaire revenue grew 4.8 percent, compared to 3.9 percent in 2014 and that luminaire revenue growth is expected to continue over the forecast period. Growth is seen in LED integrated and LED replacement luminaires, which will see continued growth through 2023.

The analyst also points to fragmentation in the supply base for both non-LED and LED lamps in 2015, with the top 10 vendors falling from 54.8 percent to 41.4 percent of the market for non-LED lamps, and 55.1 percent to 50.2 percent for LED lamps. These top vendors accounted for 33.5 percent of the market in 2015, and LED lamps and luminaires will likely account for more than half of all lighting market revenue by 2019.

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