Packaged LEDs Show Slower Growth Than LED Modules

Dec. 26, 2014 – The packaged light-emitting diode (LED) market will see a compound annual growth (CAGR) of 11 percent from 2013 to 2019, according to a new market research report from the IHS Lighting and LEDs team. In comparison, the market for LED modules used in lighting will grow at a CAGR of 23.9 percent over the same period.

Jamie Fox, principal analyst at HIS, says many LED manufacturers like Cree (Durham, N.C., U.S.A.) and Seoul Semiconductor (Gyeonggi-do, Korea and Munich, Germany) are increasingly using modules, for example, LED light engines and chip-on-board modules, to boost profits. The LED module and light engine market is forecasted to reach $1.3 billion in 2014. The slowing growth of the packaged LEDs market is due to increasing competition and the commoditization of LEDs used in lighting, according to Fox. The report also analyzes the emerging market for LiFi (bidirectional, wireless high-speed communications using visible light), indoor positioning, and organic LEDs (OLEDs).