NEWS

Goldman Sachs Optimistic about car LED lights Growth in 2014

06-12-2013
 

Goldman Sachs latest global LED industry report pointed out decreasing prices of LED lights products are driving LED lighting market growth. Goldman Sachs believes car LED lights and general lighting demands will climbed up 70% and 40% respectively in 2013 and 2014. The financial institute upheld its previous outlook that LED lights penetration rate will reach 70% by 2020, but indicated future lighting demand growths will be much faster than expected.

 

The global LED market shows, Goldman Sachs lowered estimations for 2013-2014 demands, due to effects from the LED backlight market. Smartphone and monitor backlight amounted to 55-60% of LED demands. As smartphone, TV and backlight application penetration rates saturate, TV backlight is growing moderately, and its growth trend is expected to extend well into 2014. Goldman Sachs estimates only a 4% growth rate for 2014 monitor and smartphone demands, which was much lower than the expected 7%. 

 

Compared to the relatively conservative outlook of the backlight market, Goldman Sachs was optimistic about car LED lights market growth. Decreases in LED lights product costs have driven the overall market growth to be better than expected. From commercial lighting perspective, the payback period has been halved to about four to five years compared eight to 10 years in the past. Goldman Sachs is optimistic in the next few years, the car LED lights demand volume growth will be much faster than expected. From the situation in 2013-2014, it is estimated automotive LED lights and average lighting demands will grow 70% and 40% respectively. 

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