2 August 2011

Asia driving near-term adoption of LED lighting  

“While we continue to see steady and positive proliferation of LED lighting products, key price points could trigger real commercial demand, and Korea, Japan and China have the solutions,” says The Information Network in its report ‘Niche Markets and Strategies for Small/Mid-size Semiconductor Equipment Companies’.

The rapid increase in the market for LEDs used in applications such as notebook backlights and automobile headlights is spurring heavy capital investments by LED makers, says the market research firm. LEDs are hence creating a niche market for conventional suppliers of semiconductor processing tools and a lucrative market for suppliers of metal-organic chemical vapor deposition (MOCVD) reactors.

High-brightness LED (HB-LED) unit shipments will rise from less than 100 billion in 2010 to nearly 135 billion in 2011, forecasts The Information Network. In particular, shipments of backlight-unit (BLU) LEDs will rise from 20 billion in 2010 to 30 billion in 2011.

Last month the South Korean government launched a new LED lighting adoption program as part of its national energy-saving program, which targets 100% adoption of LED lighting in the Korean public sector and 60% penetration in all lighting applications nationwide by 2020. The government will fund $185m in 2012 and 2013 to support energy-efficiency rebates.

South Korea’s Samsung and LG are marketing domestically a broad range of LED lighting products coupled with highly competitive pricing strategies. Samsung already has a 60W-equivalent LED light bulb priced at less than $20.

In Japan, the sales volume of LED light bulbs has already reached an adoption rate of more than 40% and is expected to exceed 50% in second-half 2011.

In China, the central Government’s objective is to end up with five to six major Chinese players that can compete globally, including three to five flagship companies. Not only will China become a powerhouse in low-cost manufacturing by 2015, it will also be the largest consumer of LEDs, reckons The Information Network.  Currently, there are 50 large indoor and outdoor lighting projects either ready or in place, notes the firm.

See related items:

China developing supply chain after its LED sector grows 33.8% in 2010

MOCVD reactor shipments down 18% in Q1 but still up 31% year-on-year

Tags: LEDs MOCVD China LED market

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