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Status of the LED Industry
Oct.2013

yole led and lighting industries packaged led market september 2013 report web
7 990 €

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Description

YOLE Status of the LED Industry 2013Emergence of low price LED solutions are pushing technology adoption toward General Lighting but cost reduction is changing industry structure and pushing M&A

GENERAL LIGHTING APPLICATIONS HAVE TAKEN OFF

Growth of the LED industry has come initially from the small display application and has been driven forward by the LCD display application. In 2012, General Lighting has surpassed all other applications, representing nearly 39% of total revenue of packaged LEDs. Indeed, the LED TV crisis of 2011 (following an overestimation of the market) had  the benefit of decreasing LED prices and intensifying the competitive environment. As a matter of fact, LED-based lighting product prices have decreased more rapidly than expected, increasing the penetration rate of the technology.
Yole Développement estimates packaged LED will reach a market size of $13.9B in 2013 and will peak to $16B by 2018.  Growth will be driven mainly by General Lighting applications (45% to 65% of total revenue during this period), completed by display applications.

OTHER APPLICATIONS ARE STILL IN MOTION

Regarding display and other applications, most products currently on the market integrate LED technology. Saturation mixed with strong price pressure and competition from OLED will make most of these markets decline starting from 2013 / 2014. Contrary to General Lighting, overcapacity (inducing price pressure) has engendered a decrease in market size more rapidly than predicted.

The report presents all applications of LED and associated market metrics within the period 2008-2020, detailing for each application: drivers & challenges, associated volume and market size (packaged LED, LED die surface), penetration rate of LEDs, and alternative technologies (…). For General Lighting, a deeper analysis is developed with details on each market segment.

Yole LED and lighting industries Packaged LED market September 2013 Report web

TO KEEP THE MOMENTUM, LED-BASED LIGHTING PRODUCT COSTS STILL NEED TO BE REDUCED

Cost represents the main barrier LEDs must overcome to fully compete with incumbent technologies. Since 2010, the price of packaged LEDs have sharply decreased, which has had the consequence of decreasing the price of LED-based lighting products.

However, to maintain the growth trajectory, more efforts are needed in terms of price. LED still has some potential for cost reduction, but widespread adoption will also require manufacturers to play on all components of the system (drivers, heat sink, PCB…).

The report presents LED-based lighting product cost reduction opportunities, detailing: cost structure of packaged LED and LED lamps, key technologies and research areas (…).

Yole LED and lighting industries LED bulb price trends September 2013 Report web

MERGER OF LED INDUSTRY WITH LIGHTING INDUSTRY HAS STARTED

Over the past 3 years (2010 to 2012), the number of mergers and acquisitions (M&A) has continuously grown, reflecting the increased consolidation of the LED industry. During this period, we have listed ~60 significant M&A deals. And 17 additional deals have already been identified during H1-2013.

Main objectives of these deals are:
1.    Vertical integration
A consistent trend in the LED space, reinforced by the promising boom of general lighting applications. Such deals are motivated by the need for companies to access to new technologies, to close knowledge gaps in the LED supply chain, secure supply (…).
2.    Strategic acquisition
The LED lighting market remains highly fragmented in all regions of the world (i.e., local features of fixtures…). In this environment, strategic acquisitions are mainly motivated by economies of scale, desire for improved market share, access to a wider customer portfolio, and increase the sales force (…).
3.    Geographical acquisition
Mergers and acquisitions, rather than organic growth, have proved to be the main market-entry strategy by overseas acquirers. Such deals have been driven primarily by companies seeking access to new markets and local distribution networks.

The number of M&A deals is likely to continue to grow as LED technology has created a Solid State Lighting (SSL) chasm, modifying all traditional aspects of the lighting industry (light source, system design, test…) and forcing supply chain players to acquire new competencies.

The report presents the LED industry, detailing: evolution of supply and value chain, reactor capacity by region, analysis of M&A deals (…).


Yole LED and lighting industries Annual number of MA in LED industry September 2013 Report web

EMERGING SUBSTRATES COULD CHANGE THE RULES IN AN INDUSTRY DOMINATED BY SAPPHIRE

Sapphire (and SIC) remain the most widely used substrates for GaN epitaxy but many research teams are working on finding better alternatives in terms of performance and total cost of ownership. In that context, Si and GaN are the main new substrates developed in the LED industry:

  • Benefits of GaN-on-Si LEDs rely on decreasing manufacturing cost by using cheaper Silicon substrate but mainly by switching to an 8” substrate and using fully depreciated and highly automated CMOS fabs.
  • Benefits of GaN-on-GaN LEDs stem from the lower defect density in the epitaxial layers, allowing the device to be driven at higher current levels and to use a lower number of LED devices per system.

However, several barriers need to be overcome:

  • GaN-on-Si LEDs are closer to GaN-on-Sapphire LED performance but increased manufacturing yields and full compatibility with CMOS fab still need to be achieved.
  • GaN-on-GaN LEDs suffer from GaN substrate availability and its cost.


While GaN (GaN-on-GaN LEDs) holds some potential on specific high-end niches, we consider Silicon (GaN-on-Si LEDs) as the more serious contender as a potential alternative to the widespread use of Sapphire. But the success of GaN-on-Si LEDs will depend on the development of associated LEDs performance and development of manufacturing techniques.

The report presents GaN-on-Si and GaN-on-GaN LED technologies, detailing: benefits and challenges, status (…).

Table of contents

Objectives of the report 9
About the author of the report 10
Company index 11
Glossary 12
What we saw and what we missed 13
Executive summary 15
Packaged LED forecast 44
> Introduction to high-brightness LEDs
> Segmentation of high-brightness LEDs
> Overview of LED applications
> History of LED industry
> Packaged LED revenue and volume forecast by application
> LED adoption rate (2013 vs. 2020)
> Recent trends
> Packaged LED price trends
> LED supply by region
> LED reactors
> Conclusion

Display Applications 66

> Introduction
> Small size displays: Cell phones
> Medium size displays: Notebooks and tablets
> Large size displays: LCD TVs and monitors
> Other display applications

Sign and outdoor display
applications 149

> Overview
> Details on large outdoor displays
> Details on signals / emergency lights
> Packaged LED revenue and volume from 
signs and outdoor displays

Projector applications 156

> Overview of technologies
> Table top projectors
> Ultra-portable and pico projectors
> Example of teardowns
> LED penetration rate
> Packaged LED revenue and volume from 
projectors

Personal lighting applications 170

> Overview
> Packaged LED revenue and volume from 
personal lighting

Automotive lighting applications 173

> Introduction
> History of LEDs integration
> Drivers for LEDs integration
> Focus on interior and exterior lighting
> Challenges
> Trends
> LED penetration rate
> Alternative technology: OLED
> Packaged LED revenue and volume from automotive lighting
> Conclusion

General lighting applications:
Lumen consumption forecast 205

> Introduction
> International Energy Agency (IEA) model
> Sandia National Laboratory (SNL) model
> Model developed in the report
> Importance of light consumption model
> Conclusion
General lighting applications:
Driving forces, status and trends 213

> Introduction
> Supply and value chain
> Drivers and challenges
> Regulations, lifecycle and standards
> Future trends
> Alternative technologies
> Conclusion

General lighting applications:
Design trends 326

> Introduction
> Major trends and evolutions
> Chip-on-Board (COB)
> Middle power LEDs
> AC / HV LEDs
> Small die vs. large die
> System design choice
> Design considerations
> Conclusion

General lighting applications:
Market segment review 347

> Residential / Commercial / Industrial / Outdoor lighting

General lighting applications:
Analysis by region 428

> Lamp market volume per region
> Trends per region
> Focus on leading countries

General lighting applications:
Conclusion 444

> Drivers for adoption
> Evolution of socket occupancy by technology
> Packaged LED volume and revenue for general lighting applications
> A declining market

Mergers and acquisitions:
in the LED industry 450

> Introduction
> Details on significant deals (2010 to H1-2013)
> Analysis
> Conclusion

Chinese LED industry 460

> Overview
> Domestic market highlights
> Trends
> Conclusion

Emerging LED technologies 483

> GaN-on-Si LEDs
> GaN-on-GaN LEDs
> Conclusion

General conclusion 504

companies cited

Aaxa
Acculite
Acer
Aiptek
Aixtron
Allegro Micrsosytems
Aone
Aoto
Apple
Archos
Armstrong World Industries
ASP
ATMI
AUO
Autolux
Avagotechnology
BenQ
BetaLED
BMW
Bodine
BOE
Bridgelux
Burton
Cadillac
Cambridge Display Technology
Casio
CeramTec
Ceravision
ChimeiInnolux
China Electric Manufacturing
Cigna
Citizen Electronics
Color Kinetics
Cotco
Cree
Dakco
Daktronics
Dow
Dynalite
EDN
Eldo
Elightbulbs
Encelium Technologies
Epistar
Erco
Eschenbach
Everbright Lighting
Everlight
Facebook
Felco
Flextronics
Formosa Epitaxy
Foxcon
Gaggione
GE Lighting
GEO LED
Genlyte
GLT
Google
Havells Sylvania
Hella
Hellfont
Hitachi
HTC
Hulu
I-Chiun
Indal
International Energy Agency
Irico
Khatod
Kodak
Laird Technologies
LED Lighting Fixture
Ledlux
Ledman
Led Optics
Lemnis
Leotek
Leviton
LG
LG Display
Lianovation
Lighthouse
Lighting Science
Lite-On
LTI
Luceplan
Lumistemas
Lustrous Technology
Luxim
Maglite
Meanwell
Melton Optoelectronic
Micron
Microvision
Mitsubishi
Motorola
Motorola Lighting
Nanosys
Nationstar
Natural Lighting
NCW
Netflix
Nichia
Nikon
Nintendo
NIST
Noanophotonica
Nokia
Nonoco
Nuventix
Opel
Optimum Lighting
Optoma

Optotek 
OREE
Osram
Osram OS
Osram Sylvania
Panasonic
Partners Lighting
PG&E
Philips Color Kinetic
Philips Hadco
Philips Lighting
Philips Lumiblade
Philips Lumileds
Photon Star LED
QD Vision
Redwood Systems
Retop
Ruud Lighting
Samsung LED
Samsung Mobile Display
Sanan Optoelectronics
Sandia National Laboratory
Selecon
Seoul Semiconductor
SET Light Apparatus
Sharp
Sharp Microelectronics
Shenzhen Fuxiang Optoelectronics
Silan
Siteco Lighting
Soldonsun
Sony
Stanley Electric
Street Light Control
Sunny World
Surefire
SVET
Teletrol
Thermal King Technology
Tianma MicroElectronic
TIR
Topanga
Toshiba
Toshiba Lighting
Toyoda Gosei
Traxon Technologies
Tridonic
Trilux
TSMC
ULM Photonics
Unilumin
Unity Opto
Veeco
Viewsonic
Visionox
WeiMin Industrial
Wellypower
Zumtobel

 

KEY FEATURES OF THE REPORT

  • LED market metrics (unit and value): Forecast 2008 - 2020
  • Detailed analysis of each LED application (LCD TVs, smartphones…)
  • In-depth analysis of General Lighting applications
  • Supply / value chain analysis
  • Analysis per region
  • Analysis of emerging technologies