The global market for LEDs will increase at a compound annual growth rate of more than 18% this year until 2021, the market research firm Technavio forecasts. At that rate, the market would go from $18.51 billion in 2016 to $43.18 billion in 2021, Semiconductor Today reported.
For their analysis, Technavio divided the LED products into main two segments: lamps and fixtures, also called luminaires. The advantages of LED fixtures such as energy-efficiency, long lifespan, and their wide usage in residential, office, and retail sectors will contribute to the growth of this market segment, according to Technavio.
“Four market drivers are contributing to the growth of the global LED market: a favorable policy environment and governmental support; demand for energy-efficient lighting solutions; increasing outreach of energy-efficiency certification programs; and upcoming international events and infrastructure projects,” Semiconductor Today reported.
Although the global CAGR is predicted to be 18%, Technavio shows the LED market in the Asia-Pacific region growing at 20.56% during the next four years. “The region has witnessed growth in various industries including retail, hospitality, and healthcare,” Technavio says. Governments in those countries are increasingly focusing on infrastructure improvements so those efforts paired with rapid urbanization will likely contribute to LED market growth in that region.
Technavio called the LED market highly fragmented and competitive with international and regional vendors competing on factors such as product quality, technology, and price. “The rise in product or service extensions, M&A activities, and technological innovations, will intensify the level of competition among the players in this market space,” Technavio predicts. The report identified the leading vendors in the LED market as Cree, GE Lighting, LG, Innotek, NICHIA, OSRAM, Philips Lighting, and Samsung Electronics.
Not long ago, LED retrofits were being compared to “killer apps” for energy efficiency. New LED projects require careful planning, however, to make sure the long-lasting retrofits are done well. Given the predicted global market growth, we’re likely to see a proliferation of new projects. In the near future, there’s the 2018 FIFA World Cup in Russia next July. Semiconductor Today points out that the event is likely to contribute substantially to the global LED market through the increased construction of infrastructure and buildings. Expect some big strides.