- 28 February 2005 -

Two segment LED market

According to a new study by 2010 the global LED market may consist of two segments: a highly commoditised market in simple, inexpensive LEDs for mass-produced goods, and a sector dealing in high-end, high-tech innovations.

ABI Research's VP Edward Rerisi, notes that the lower 'general lighting' end of the market is already characterised by price-cutting, low margins, and IP disputes that are disruptive to supply chains. "The lower half of the market is likely to experience a period of consolidation," he says.

"Meanwhile higher-tier, higher-technology companies that can protect their IP and guarantee delivery will capitalise on that strength to search for new applications, that will let them escape the intense competition."

Expect to see high-quality LEDs in complex (and more expensive) systems such as stage lighting, automotive headlights and large TVs, according to the research. Fortunately for the industry, these are among the markets that are going to see the most growth through the end of the decade.

Meanwhile, because of the technology's energy-saving nature, governments are adding to the mix with significant support for the LED industry, both in contracts and in funding new research.

The study, "LEDs and Laser Diodes", analyses major LED and laser diode markets, technologies, and players. It also reviews external factors that may effect the growth of the LED industry, such as the burgeoning OLED industry
and the current shortage of Indium.