Online customer service
Online customer service system

Global LED encapsulation market is estimated to reach $22B by the year 2019


Strategies Unlimited, which has made research on the LED lights industry for over two decades, just made its latest report investigating the global LED ensulation market. The Worldwide Market for LED lights: Market Review and Forecast 2015 analyzes the market for ensulated LEDs used in backlight display , automotive LED lights, mobile phone applications, signs, lighting and other applications; and provides detailed forecasts for many applications used within these sectors. Analysis was also done by material and package type including InGaN, InGaAlP, RGB and low power, mid power, high power and super high power LED lights for each sector. The report also includes market shares for the top 25 LED ensulation companies with a detailed supplier analysis by region.

According to Strategies Unlimited, in 2014 the total LED ensulation market grew 7.6% to reach revenues of $15.6 billion. Lighting made up 34% of total revenues, which was almost the same as backlight display and mobile phone applications mixed at 35%. The lighting share is expected to reach 45% of total revenues by 2019 with the largest growth of any sector at a 5-year CAGR of 14.3%. 

The illumination applications that will see the largest growth are replacement lamps, commercial lighting, and outdoor lights. According to Stephanie Pruitt, senior research analyst at Strategies Unlimited, " Its no surprise that lighting is the largest sector, and it will remain the largest sector throughout the forecast. Within lighting applications, the general lighting categories comprise nearly 75% of the total lighting revenues. The replacement lamps market and luminaire market are very large, and as LED light market grows, ensulated LED revenues in these segments will also grow.”

Prices for ensulated LED lights in lighting saw some great declines from 2013 to 2014. Most suppliers were seeing price declines of around 20%, while some were reporting declines as steep as 25%-30%, especially so for chip-on-board packages (COBs). However, despite these price drops, the continued adoption of LED lights in homes and commercial applications has allowed for the largest growth of any sector.


Strategies Unlimited reports global packaged LED market to reach $22B by 2019

According to Pruitt, "LED light has yet to reach its turning point. Prices continue to drop, rebates continue to incentivize, and manufacturers continue to come up with new and exciting ways to make LED lights relevant and desirable. With LED lights, customers are able to install lighting where they never would have thought before, opening up new opportunities. Smart, controllable lighting will also have an influence on adoption rates as this creates huge possibilities for the consumer - think energy savings, labor/maintenance savings, indoor navigation, and improved security. As a result, packaged LEDs in lighting will continue to be a growth segment."


Lighting will not be the only sector to see healthy growth over the forecast. Automotive also saw strong growth in LED headlamps and LED daytime running lights continue to be a choice in cars, and not just high end cars. LED lights revenues in exterior automotive lighting applications are forecast to have a CAGR of 15%.

Share to the following social media