IMS: Packaged LED Market Growth to Pause, But LED Lighting Segment to Grow

September 8, 2011...IMS Research reports that after 60% growth in 2010, the gallium nitride (GaN) LED market is expected to pause in 2011, rising just 1% to $8.7B. The company says that the lighting market is the fastest growing application for packaged LEDs in 2011. In 2011, revenues from LED lighting rose 24% to $1.7Billion and reached a 20% share of packaged LED revenues, up from 16% in 2010. Despite the rapid growth, LEDs are only expected to achieve a 1% unit and 14% revenue share of the lighting market in 2011, leaving significant potential for future growth.

IMS Research predicts that while the TV segment of the packaged LED market is expected to level off after 2013, the lighting segment of the packaged LED market is expected to continue growth through 2017 before leveling off around 2018.

The company points to slower than expected backlighting market growth as the main reason for the overall slowdown in the packaged LED market. Backlighting currently accounts for over 60% of GaN LED revenues. Backlighting is now expected to fall 3% in 2011 to $5.4B, after 80% growth in 2010, despite a 36% increase in units due to aggressive price reductions.