LED luminaire market to grow from $3.8bn in 2010 to $8.3bn in 2014
Growth rates among applications vary, but the global market for LED luminaires is expected to
grow to $8.3bn by 2014, according to Strategies Unlimited’s ‘LED Luminaires, Market Analysis
& Forecast’, which covers nine LED lighting application segments and analysis for 2008–2014.
The market research firm says that rapid improvements in the performance and price of
commercially available high-brightness LED packages, heightened awareness about energy
efficiency, the phasing out of incandescent bulbs, and fiscal stimuli undertaken by countries
around the world have created conditions for the adoption of white-light LED technology, which
otherwise would have faced the low-volume/high-cost conundrum. Quality issues that affected
the market penetration of previous energy-efficient lighting technologies continue to affect
this market, but the resolve to reduce energy consumption is likely to propel the technology
to be widely commercialized and adopted by the market, reckons Strategies Unlimited.
As the most efficient light source technology for applications requiring a directional beam of
light and batteries, consumer portable applications were the largest segment of the LED
luminaire market in 2010. The quality of LEDs has improved to a point that performance is no
longer an issue, says the firm. The issue now is the price of designing LEDs into luminaires.
Color and color-changing application in architectural and entertainment applications
collectively had revenue of more than $1bn in 2010. Meanwhile, starting from a small base,
residential lighting (the fastest-growing segment of the market) is forecast to grow at a
compound annual growth rate (CAGR) of 44% through 2014.
