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. 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. Lighting companies are trying to capture different market segments through product diversification and technological advancements. The U.S. and India markets are expected to experience the most growth.
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.