Long life and energy efficiency push LEDs to take 40% of the global lamp market in 2013 according to IMS Research
Date Announced: 13 Sep 2011
Austin, TX – Long life and energy efficiency will underpin the success of LEDs, and their quick adoption will have a profound effect on the global lamp market with LEDs accounting for 40 percent of the total market in 2013.
That said, by 2018, the LED lamp market is expected to contract. The longer life of LED lamps means that as more are installed, the smaller the market will become as replacement lamps will not be required for several years.
The growth rate for LED lamp shipments from 2009 to 2015 is forecasted to be 97 percent (CAGR), while the growth rate from 2015 to 2020 will slow to 13 percent CAGR. The market growth rate will begin reversing in 2014 as ASPs of these lamps continues to decline, so that by 2018, the LED lamp market is actually expected to begin contracting.
There are two major implications for manufacturers due to the projected market growth and decline.
In order to profit in the LED lamp market, it will be necessary for them to enter the market early
They will be required to be vertically integrated. Price is one of the most important purchasing decision parameters for consumers, by being vertically integrated, lamp manufacturers will be better positioned to reduce their ASPs
The big three lamp companies, Philips, OSRAM and GE, currently comprise approximately 60 percent of the lamp market. Of these, GE is the only one that does not own any LED production facilities. Additionally, companies like Samsung, LG and are looking for growth markets and have been pushing hard to produce their own LED lamps.
With LEDs making up more than 50 percent of the lamp market in 2014, it is likely that the big three will become the big five or more – and that GE fades as its bargaining power declines.
About IMS Research
IMS Research is a leading independent supplier of market research and consultancy to the global electronics industry, offering syndicated market studies, bespoke research and consultancy services. Clients include most of the household names in the industry. IMS Research has offices in Europe, the US, China, Taiwan and South Korea. To find out more, contact IMS Research: email@example.com; T: +44 (0) 1933 402255; http://imsresearch.com
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