Electronics Production | September 22, 2006
LED Industry at a Critical Crossroads
LEDs have a bright future in lighting, despite a dramatic slowdown in the growth of the market in 2005, according to iSuppli Corp.
After three consecutive years of explosive double-digit growth, the rate of expansion in the Solid-State Lighting (SSL) industry declined dramatically in 2005 to 5.8 percent, contributing to a slowdown in the larger Light Emitting Diode (LED) market, according to iSuppli Corp. The deceleration in the growth of the LED industry last year was primarily due to aggressive reductions in pricing of High-Brightness (HB) blue and white LEDs, a deceleration in the increase of demand for LEDs from the mobile-phone market, and the slower adoption of solid-state lighting in new applications. iSuppli estimates that Average Selling Prices (ASPs) for blue HB LEDs used in keypad backlighting declined by 26 percent in 2005 and ASPs for white LEDs employed in handset backlighting decreased by about 20 percent last year. The aggressive ASP erosions are continuing in 2006. In 2005, backlighting of Liquid Crystal Displays (LCDs) and keypads in mobile handsets accounted for 25 percent of total SSL industry revenue. However, during the past year, the growth rate in unit shipments of mobile phones was 15 percent, significantly lower than the 25 to 30 percent growth rates in 2003 and 2004. "The SSL industry now finds itself at a critical crossroads," said Jagdish Rebello, director and principal analyst with iSuppli. "The growth drivers for the SSL industry are shifting from backlighting of small-screen LCDs to new applications requiring high-flux LEDs-also referred to as Ultra High Brightness (UHB) LEDs." iSuppli projects that the market for LEDs will have a Compound Annual Growth Rate (CAGR) of 10.6 percent through 2011, when it will exceed $9.1 billion. A significant portion of this growth will be driven by UHB LEDs. In 2011, UHB LEDs will account for approximately 33 percent of the total LED market-up from 4 percent in 2005. iSuppli's forecast for the worldwide market for standard brightness, HB and high-power through-hole and Surface Mounted Device (SMD) LED lamps is shown in the figure below and attached. The backlighting of large-screen LCDs, new signage and decorative illuminations and exterior automobile lighting will fuel future growth, iSuppli predicts. Several LED suppliers, Back Light Unit (BLU) manufacturers, LCD panel makers and television/monitor OEMs are actively investigating the use of LEDs for backlighting of large-screen LCDs. Several designs are being investigated and prototypes are being demonstrated. While LED BLUs offer the advantages of richer color gamut, better contrast, lower power consumption and reduced thickness, LED BLUs now are significantly more expensive than Cold Cathode Fluorescent Lamp (CCFL) BLUs. iSuppli projects that commercial shipments of large-screen LCDs with LED BLUs will commence in 2007. However, penetration rates will be small, at less than 10 percent through 2009. And as progress continues to be made in improving the performance of LEDs, while driving down pricing, high- power LEDs will slowly start to penetrate the general lighting market. The global general illumination business represents a $16 billion market for light bulbs and an additional $25 billion market for lighting fixtures, drive circuitry and accessories. LEDs now have a negligibly small percentage of this market. Today, applications such as LED flash lighting and garden lighting are slowly creating awareness among customers and reducing the educational barrier to the adoption of LEDs in lighting. iSuppli projects that LED light bulbs will begin to address the residential and enterprise general illumination market in 2010. And as LED technologies advance, new applications will emerge that traditional lighting sources like incandescent lamps and fluorescent bulbs will simply not be able to address. The near monochromatic emission of LEDs and their resultant capability to tune their spectral characteristics will culminate in dramatic lighting applications that have not yet been conceived. If all LEDs do is replace traditional lighting sources in existing applications, then the success of LEDs will be limited. However, iSuppli believes that just as the replacement of vacuum tubes with solid-state transistors revolutionized the electronics industry with dramatic new applications, so too will the LED for the lighting business. Lighting designers, OEMs and module manufacturers are striving to harness the power of LEDs in new lighting applications and to advance the overall lighting industry. The market is expanding and investments in innovative designs and creative solutions can be well justified.
Big Ass Fans adds third Hentec/RPS machine Complementing the purchase of two Hentec Industries/RPS Automation Vector 300 selective soldering machines in 2018, Big Ass Fans (BAF), a high-volume, low- speed (HVLS) airflow manufacturer, has just added a third machine to its factory in Newman Lake, Washington.
CE3 Electronics Inc. taps MIRTEC for 3D AOI technology Canada-based CE3 Electronics has purchased a MIRTEC MV-6 OMNI 3D AOI machine.
Gémosz is still looking to grow – but the pandemic brought new perspectives Winston Churchill famously said, “Never let a good crisis go to waste”. While this was said in a vastly different context than the current crisis of the COVID-19 pandemic, there is still truth to the fact that a crisis not only allows for change – but sometimes forces it.
North American PCB industry sales up 4.3% in April The IPC says that total North American PCB shipments in April 2020 were up 4.3% compared to the same month last year. Compared to the preceding month, April shipments fell 18.2%.
Volkswagen intensifies e-mobility activities in China Volkswagen has initiated the next chapter for its business in China. The automotive giant plans to increase its share in JAC Volkswagen, its joint venture for e-mobility.
GPV Selects Aegis as global smart factory partner Driven originally by accelerating customer expectations for traceability, GPV has selected Aegis’ FactoryLogix Smart digital manufacturing solution, targeting multiple values and benefits.
REDCOM EMS expands certification for medical device manufacturing New York-based REDCOM EMS has secured ISO 13485:2016 certification, complementing the company’s existing ISO 9001:2015 and AS9100D certifications.
Ozark Integrated Circuits nabs U.S. Air Force grant Arkansas-based Ozark Integrated Circuits Inc., located in the Arkansas Research and Technology Park at the University of Arkansas, has received a USD 750,000 award from the U.S. Air Force.
Norwegian EMS adds employees to Polish unit The last couple of months Norautron has welcomed three new colleagues at its office in Sdunska Wola, Poland.
Daimler’s battery production in Kamenz gradually increases production Local battery production is described as an important success factor for Mercedes-Benz AG’s electric offensive and a key element to flexibly and efficiently meet the global demand for electrified vehicles.
Tepcomp invests in new additional production line Finnish EMS provider, Tepcomp Group, has made a significant investment at its production plant in Turku. The new surface mount technology production line will significantly improve the productivity and energy efficiency of the plant.
Valoe is on schedule with both production and expected deliveries Valoe says it will start manufacturing IBC test modules in Juva, Finland in June and cell deliveries from Lithuania to customers is scheduled to start according to plan.
AMTE Power and Britishvolt sign MoU for GigaFactory AMTE Power and Britishvolt plans to investigate collaborating to build the UK’s first full cycle battery cell GigaPlant, servicing the automotive and energy storage markets.
ALLPCB’s new SMT factory has launched production On May 10 2020, ALLPCB’s new – self-operated – SMT factory in Guangde, Anhui Province, China was officially put into production.
Schweizer starts production at its new location in China Following a construction period of one and a half years, production has now started at the company’s new high-tech printed circuit board plant in Jiangsu, China.
Jenoptik supplies generators to a US customer Through its Vincorion investment, Jenoptik received a long-term order for generators that an unnamed US customer is integrating into military vehicles.
Rolls-Royce takes heavy hit from COVID-19 – reduces workforce by 9000 The impact of COVID-19 on Rolls-Royce and the whole of the aviation industry is unprecedented. RR has already taken action to strengthen the financial resilience of its business and to reduce cash expenditure in 2020. However, this will not be enough.
Data Link Solutions to provide MIDS cabinet terminals to US Navy The U.S. Navy has awarded a USD 3.2 million production contract to Data Link Solutions (DLS), a joint venture between BAE Systems and Collins Aerospace, for new Multifunctional Information Distribution System (MIDS) cabinet terminals.
Incap restarts production in India In a move to contain the COVID-19 pandemic, the government of India instructed all state governments to introduce a lockdown in March. As a consequence, Incap had to close its factory in Karnataka, India on 23 March.
NAND Flash Revenue Undergoes 8.3% QoQ Growth in 1Q20 NAND Flash bit shipment in 1Q20 was relatively on par with 4Q19, says the DRAMeXchange research division of TrendForce. The overall ASP of NAND Flash products also climbed during the period. As a result, the global NAND Flash revenue for the quarter went up by 8.3% QoQ to USD 13.6 billion.
Gorenje reduces the number of layoffs At the end of April, due to a sharp drop in orders and revenues as a result of the COVID-19 pandemic, the Hisense Europe Group launched a redundancy program in four companies in Slovenia.
NA semiconductor equipment industry posts April 2020 billings North America-based manufacturers of semiconductor equipment posted USD 2.26 billion in billings worldwide in April 2020 (three-month average basis), according to SEMI.
AWS Electronics to wear the Incap name Following the acquisition of AWS Electronics Group by Incap Corporation in January 2020, the company's units in the UK and Slovakia will now be trading as Incap Electronics UK Ltd. and Incap Electronics Slovakia s.r.o.Load more news
- COVID-19 highlights the gravity of the secondary market for SME
- Rolls-Royce takes heavy hit from COVID-19 – reduces workforce by 9000
- China falls far short of its "Made-in-China 2025" goal
- Data Link Solutions to provide MIDS cabinet terminals to US Navy
- GlobalFoundries to implement ITAR at US manufacturing facility