The total market for packaged LEDs is forecast to increase in revenue at a compound annual growth rate (CAGR) of 12.9% from 2013 to 2018, according to Strategies Unlimited’s annual report ‘The Worldwide Market for LEDs: Market Review and Forecast 2014’, which covers display backlighting, mobile device, automotive, signage, and general lighting applications.
The packaged LED industry grew from $1.2bn in 2000 to $14.2bn in 2013. Back in 2009, illumination accounted for just $665m in revenue. In 2013, the general lighting segment was worth $4.4bn.
“We forecast the growth for LEDs in lighting to be 27% of CAGR from 2013 to 2018, driven mostly by an increased consumer confidence and continuously increasing sales of replacement lamps, downlights, industrial, commercial, and outdoor products,” says analyst Katya Evstratyeva.
Of total revenue, the top 15 companies in the LED space account for about 81% and the top 25 companies account for 93%. Strategies Unlimited says it is clear that quite a few manufacturers continue to struggle to find their identity in this fast-changing environment as the packaged LED industry is becoming increasingly complex. “As a result, we anticipate consolidation of the market in the coming years,” the firm concludes.