Global LED Market Growth Led by Product Innovations
LEDs, also known as Light-Emitting Diodes, are semiconductors that emit non-coherent, narrow-spectrum light when an electric current is passed through them. They are small in size, consume less energy and have a longer lifetime as compared to incandescent bulb and compact fluorescent lamp. LEDs are capable of producing light in visible, infrared and ultraviolet spectres. The light is generated when the electrons and holes carry the current and combine within the semiconductor material. The first visible-spectrum LED was developed in the form of red diodes by Nick Holonyak Jr in early 1960s. This event was followed by the invention of pale yellow and green diodes. With time, manufacturers started introducing other colour variations of LEDs such as blue and white. This led to an increase in the usage of LEDs for different purposes which include flashlights, televisions and traffic lights. According to IMARC Group, the global LED market size was around US$ 62 Billion in 2017. Looking forward, the LED market is further expected to cross US$ 115 Billion by 2023, at a projected CAGR of nearly 11% during 2018-2023.
Rising Applications in End-Use Industries to drive the market
LEDs offer various benefits as compared to conventional lights which include longer lifespan, less energy consumption and high durability. This is one of the major factors which is driving overall LED market share across the globe. Over the past few years, governments of various developing nations have started promoting the usage of LED lights as they help in conserving energy and protect the environment. Another LED market trend has been noticed where the consumers have started shifting towards LED lights on account of a continuous rise in the prices of electricity led by a shortage of raw materials and high demand. Additionally, these lights are being increasingly used in numerous applications such as for general lighting, street lighting, signal and signage, healthcare, and automotive as well as academics and research purposes. However, manufacturers in several countries have to import SMD LEDs which is the main raw material. This increases the overall production cost of LED lights and acts as a major hindrance for the growth of the global LED market.
According to the global LED market report, LED currently finds myriad applications which mainly include retrofit, retail and hospitality, outdoor, offices, architectural, home and industry. Amongst these, it is being majorly used for being retrofitted into existing light fixtures. These days, retrofitting is required at all types of places ranging from indoor lighting in homes to outdoor lighting in stadiums. In addition to this, the consumers have become aware about the benefits of using existing fixtures instead of installing new LED systems.