With more than $4B revenue, the LED lighting module market is showing attractive perspectives
The LED lighting module industry is showing the emergence of innovative functions and the introduction of new market segments including automotive, smart lighting and horticultural markets. In this context, Yole Développement (Yole) estimates the market and presents its vision of the industry in its new technology and market report titled LED Lighting Module Technology Industry & Market.
According to Yole’s Solid State Lighting team, the LED lighting module market, including flexible LED strips, reached nearly US$4 billion in 2016 and will grow to US$13.8 billion by 2022.
“LED technology is increasingly penetrating general lighting applications, thanks to how easily integrators can use it,” announced Pierrick Boulay, Technology & Market Analyst, Solid-State Lighting at Yole. “The LED lighting module market will therefore deliver a 22.6% CAGR between 2017 and 2022.”
Yole’s report provides a comprehensive overview of the LED lighting modules including technologies, markets and applications, main functions and integration into lighting systems. The company propose a deep analysis of the positioning of each module type, including mid-power, high-power, COB and flexible strip and the main technologies in use. Industry structure, future trends and market data are also analyzed in this report.
General lighting is not a ‘blue ocean market’ any more, due to strong price pressure and intense competition between LED players. Therefore, LED module manufacturers are seeking growth engines, following the example provided by the packaged LED industry a few years ago.
Therefore, LED companies are diversifying their activities and looking for market opportunities. These emerging market segments include horticultural lighting, automotive lighting and smart lighting, and are going beyond visible light into the IR or UV parts of the spectrum. All of these applications are attractive by showing much higher margins, compared to general lighting ones.
The modules used in these applications require a high level of expertise, a strong industrial knowledge and technical skill. LED module manufacturers targeting these new applications are betting integrators will not have the competencies needed. In addition, high market demand will help them move higher in the value chain.