This statistic represents the estimated LED market penetration between 2010 and 2020. In 2014, light-emitting diodes are expected to reach a penetration into the lighting market of approximately 11 percent.
Since they use only a fifth of the electricity required by a comparable incandescent bulb, light emitting diodes (LEDs) are currently among the most energy-efficient light sources in the world. The world’s leading light bulb-makers - GE Lighting, Osram and Philips – are facing tough competition from consumer-electronics firms, particularly Asia’s Samsung, LG and Sharp, as well as from specialized LED manufacturers such as Cree and Veeco.
As more and more countries are getting close to phasing out conventional bulbs, LEDs are continuing their march to the top of the market. The global lighting market can be broken down into the following segments: general lighting, automotive lighting and backlighting. At an estimated market size of around 73 billion US dollars, general lighting was the largest segment in 2011. The general lighting market is expected to exceed 100 billion US dollars by 2020, while the automotive lighting market is expected to rake in revenues of just under 25 billion US dollars in 2020, thus accounting for almost 20 percent of total market revenue. In the backlighting segment, revenue growth is expected to stagnate due to the increased use of organic light emitting diode (OLED) technologies. The market share of OLEDs in smartphone and television displays is set to experience accelerated growth at the expense of LED and liquid crystal displays.
The high price of light emitting diode packages remains a drawback, although it holds true that price erosion is happening in the field. There are various factors driving the decline in prices, including over-investment in manufacturing capacity and the slowing demand in the backlighting segment.
Note: The values have been converted from euros to US dollars at a rate of 1 EUR = 1.323 US dollars (correct as of December 31, 2012).