The global LED market is expected to grow by USD 25.78 billion during 2020-2024 according to the latest market research report by Technavio. Request a free sample report
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Technavio has announced its latest market research report titled Global LED Market 2020-2024 (Graphic: Business Wire)
The manufacturing cost of LEDs is declining primarily because of the decrease in ASP of chips and components used in the manufacturing process. This, in turn, is leading to low installation costs of LED lamps and fixtures. Moreover, government subsidies for the purchase of semiconductor equipment such as metal-organic chemical vapor deposition (MOCVD) used for the manufacture of LEDs is bringing about a decline in manufacturing costs, which in turn is encouraging manufacturers to increase their LED production capacity. In addition, government support has helped vendors reduce the variable costs associated with manufacturing by operating their manufacturing facilities at full capacity. Also, the shift toward larger diameter sapphire substrates, which are used to produce LED chips, is bringing down the cost of manufacturing. These factors have allowed manufacturers to produce more LED chips per wafer, thus reducing manufacturing costs. As the price wars in the LED market increase, manufacturers, with an increased focus on cutting costs, will opt for large-diameter sapphire wafers for LED production, which will accelerate production and allow them to produce more chips per wafer. All these factors are expected to result in a further decline in the ASP of LEDs, which, in turn will encourage adoption across several application segments.
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As per Technavio, the growing adoption of energy-efficient lighting technologies will have a positive impact on the market and contribute to its growth significantly over the forecast period. This research report also analyses other significant trends and market drivers that will influence market growth over 2020-2024.
LED Market: Growing Adoption of Energy-Efficient Lighting Technologies
The increase in demand for lighting has resulted in a rising use of electricity, which has led governments of many countries to focus on promoting energy-efficient lighting technologies. In some countries, governments have banned the use of incandescent bulbs, which in turn, has resulted in the high adoption of other energy-efficient lighting technologies, including halogen, CFL, LFL, and LED.
LED lighting products are expected to witness higher adoption, compared with CFLs and LFLs, because of their cost and energy-saving features. In addition, growing awareness about power and energy conservation has triggered the adoption of energy-efficient lighting technologies, particularly LEDs, which consume at least 75% less energy than traditional incandescent bulbs and can last 25 times longer. Moreover, manufacturers of lighting products have started to focus on the development of energy-efficient and environment-friendly lighting solutions because of increasing awareness of green technology and decreasing price of LEDs. This is expected to have a positive impact on the growth of the global LED market during the forecast period.
“The declining manufacturing cost of LEDs and the enforcement of Minamata Convention on mercury are some other major factors that will boost market growth during the forecast period,” says a senior analyst at Technavio.
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LED Market: Segmentation Analysis
This market research report segments the global LED market by application (general lighting, backlighting, automotive lighting and others), product (luminaires and lamps), and geographic segmentation (APAC, Europe, MEA, North America and South America).
The APAC region led the LED market in 2019, followed by North America, Europe, MEA and South America. During the forecast period, the APAC region is expected to register the highest incremental growth due to factors such as growing construction market, increasing government investments in infrastructure projects, and the presence of many LED chip and packaging factories in the region.
Technavio’s sample reports are free of charge and contain multiple sections of the report, such as the market size and forecast, drivers, challenges, trends, and more.
Some of the key topics covered in the report include:
- General lighting
- Automotive lighting
- North America
- South America
- Vendors covered
- Vendor classification
- Market positioning of vendors
- Competitive scenario
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