General Lighting Brightens Up with LEDs

Clearlysapphire.com continues to follow the growth of LED lighting as well as sapphire and alternative substrates. This week, we’ll focus on a new report from Yole Developpement, a research firm that covers LEDs and the semiconductor industry.  Yole recently reported that the packaged LED market will grow from $13.9 billion in 2013 to $16 billion by 2018, driven mainly by general lighting and completed by display applications.  The report, Status of the LED Industry, details how LED-based general lighting has surpassed all other applications, representing nearly 39 percent of total revenue of packaged LEDs In 2012.

2013 packaged LED revenue by application.  The total market size is nearly $13B. (Source: Status of the LED Industry report, Yole Developpement, September 2013)

2013 packaged LED revenue by application. The total market size is nearly $13B. (Source: Status of the LED Industry report, Yole Developpement, September 2013)

Costs need to continue to drop to keep LED-based lighting’s momentum in the general lighting market according to the report’s author, Pars Mukish, market and technology analyst, LED for Yole Developpement.  He commented, “Cost represents the main barrier LEDs must overcome to fully compete with incumbent technologies.  Since 2010, the price of packaged LEDs have sharply decreased, which has had the consequence of decreasing the price of LED-based lighting products.”

Mukish notes that in order to maintain growth, the industry needs to continue reducing pricing.  He pointed out that while LED still has some potential for cost reduction, widespread adoption will require manufacturers to reduce costs on all components of the system such as drivers, heat sink, and PCB.

Yole also updates their reporting on the use of alternative substrates in the LED market.  This situation hasn’t changed since we last covered alternatives in these posts:  Clearlysapphire.com, Alternative Substrates – Dimming the Hype, http://blog.clearlysapphire.com/?p=496 and Clearlysapphire.com, Alternative Substrates for LEDs, http://blog.clearlysapphire.com/?p=293.

According to Yole, companies working on alternatives such as silicon and GaN still face major obstacles.  Mukish says the benefit of GaN-on-silicon LEDs depends on decreasing manufacturing cost by using cheaper 8 inch silicon substrates that can leverage fully depreciated and highly automated CMOS fabs. However, he maintains that GaN-on-silicon LEDs still suffer from low manufacturing yields and full compatibility with CMOS fab still needs to be achieved.  He added that GaN-on-GaN LEDs benefit from a lower defect density in the epitaxial layers, allowing the device to be driven at higher current levels and to use a lower number of LED devices per system.   However, he said that GaN-on-GaN LEDs suffer from low GaN substrate availability and high costs.

For Further Reading

iMicronews, Sample, State of LED Industry, SLI report,  http://www.i-micronews.com/upload/Rapports/SLI%20Sample.pdf

Compound Semiconductor, Yole: Inexpensive LED Solutions Pushing Adoption In General Lighting, http://www.compoundsemiconductor.net/csc/detail-news/id/19736834/name/Yole:-Inexpensive-LED-solutions-pushing-adoption-in-general-lighting.html

Novus Light Today, Yole Releases Status of LED Industry Report, http://www.novuslight.com/yole-releases-status-of-led-industry-report_N1675.html