Changes in consumer preferences do affect product designs in the global market, consequently affecting LED market share. However, APAC has led the LED market since a few years now, and continues to grow.
The rising awareness about energy-efficiency and with governmental focus on sustainability, it is only now that the global LED market can actually be said to have come of age. Consuming up to 40% less power, light-emitting diode technology has been in use since decades, but has only relatively recently achieved the status of consumer goods. Also boasting of longer product lifespans, LEDs find demands increasing industrially, as well as in the consumer retail space. Last year, Technavio predicted that the luminaries space would consider to dominate over the lamps section when considering the LED market share, and that continues to remain the trend for the next few years (source).
With government incentives being rolled out, as well as the phasing out of halogen lamps from industrial spaces, it is not surprising that the LED market share continues to grow year over year. Innovative measures such as the development of CSP (Chip Scale Package) LEDs also ensure that the market remains relevant. CSP LEDs work to make large scale installation of LEDs more cost effective, further enhancing their usage in the industrial space. Moreover, specialized UV LEDs are also a major market segment, further increasing LED market shares.
Still shining bright
In related news, the global OLED market also continues to shine and Technavio predicts that the market will continue to grow at an accelerated rate in the next five years. This market is a highly competitive one, but regional vendors, especially in south east Asia are making their presence felt with quality products. Innovation continues in the LED market as the biggest companies across the globe invest in research and development to ensure higher compatibility with associated products such as automotive. LEDs may not have caused disruption, but are certainly a more evolved lighting product, and more suited to a world becoming more conscious about carbon footprints and global warming.
With the emergence of smart homes and cities, and due to the focus on lower energy consumption, LED drivers that allow quicker adjusting of brightness are also becoming more popular. Specialized high-brightness LEDs also contribute to the LED market share, and the development of technology allowing more cost-effective production has helped them create a major impact. Star certified products are also gaining popularity as consumers correctly associate them with lower power consumption.
The APAC scenario
LED markets have been a space where APAC has regularly witnessed dominance over other regions. Whether they have been high-brightness or OLEDs, the LED market share of the APAC region has been consistently much higher. The region is developing in many industry spaces including retail, heavy industry, infrastructure and hospitality and LEDs have been a growing presence across these spaces. Specialized LEDs, for use in particular industrial segments such as the automotive industry, or UV LEDs across research laboratories, have also seen strong market shares in the region. In addition to Japan’s big players Panasonic, Sharp and Toshiba, several smaller companies across the country and even from Korea are working on increasing their share of the wallet. Japan also has a highly developed market for LED components. The LED industry is highly developed here, with even consumer requirements for sensor equipped lighting at higher than in other regions, especially due to continuing focus on sustainable growth and the ecology.
The LED market is seeing exciting opportunities across the globe, and Technavio predicts that larger firms may face competition from upcocming ones, even though they have dominated the market. APAC also continue to lead the market for LEDs, and this is a trend that is slated to continue for the next five years.
Read about the latest news inn the LED market globally here.