Sapphire Industry Watch – May 8

  • The Hidden Perils of Energy Efficient Fluorescent Lighting – Sourceable: Fluorescent lamps have long been seen as a source of energy efficient lighting, but they pose a threat to the environment and human health as a result of their mercury content. Besides being greener in nature, LED light bulbs are devoid of mercury, making them the preferred alternative to fluorescent lamps when it comes to energy efficient lighting.
  • With LED Lights, Automakers Reveal All the Road We Cannot See – New York Times: Thanks to LEDs, automotive lighting is undergoing a quiet revolution that is leading to new vehicle designs and providing enhanced nighttime safety. By combining LED lamps with cameras, a vehicle’s headlights can continuously alter their light patterns to exactly fit road conditions.
  • Green Focused People Power LEDs – The Asian Age: India’s LED light industry is continuing to grow thanks to public awareness and government energy conservation initiatives. According to recent data from the Electric Lamp and Component Manufacturers Association of India, LED lights are likely to account for about 60 percent of the total lighting industry by 2020.
  • Implications for LEDs of The Shift to Large-Diameter Sapphire Wafers – Semiconductor Today (Pgs. 68-71): Rubicon Technology’s senior VP of operations, Faisal Nabulsi, explains the changes in the sapphire wafer market over the past two years, and how large diameter and patterned sapphire substrates are impacting LED manufacturing.

LED Lighting Growth Update

This week, LED lighting market research firm Strategies Unlimited announced some very positive research about LED lighting as well as the LED industry as a whole.  Strategies Unlimited measured the LED component revenue for lighting applications and noted that it reached $3.11 billion in 2012, just beating out the large area display backlight segment at $3.06 billion for top LED application.

This is good news for sapphire, as the substrate for more than 80 percent of the world’s LEDs. The more demand for LEDs and LED lighting, the greater demand for sapphire. Examining lighting further, Strategies Unlimited said that the total illumination market for 2012 is estimated at $14.52 billion.  LED lighting, including LED replacement lamps and luminaires, is estimated at $11.72 billion—an increase of 26% between 2011 and 2012—and it is forecast to grow at a CAGR of 12% over 2012-2017.

Another interesting area of growth is the automotive market.  Beyond the Audi A8s with their signature eyebrow LED headlights, LEDs are catching on with other auto makers.  Strategies Unlimited puts the total market for LEDs in the automotive segment at $1.4 billion in 2012 and estimates that it will grow to $2.1 billion in 2017. Where’s the growth?  The firm says the number of cars with LED headlights nearly doubled in 2012.  LED daytime running lights also contributed to the growth.

Here’s a look at how LED applications break out according to Strategies Unlimited:

Strategies Unlimited, Worldwide LED Revenue Forecast by Market Segment (Source: Solid State Technology)

 

 

 

 

 

 

Further Reading

Strategies Unlimited, WORLDWIDE LED COMPONENT MARKET GROWS 9% WITH LIGHTING RANKING FIRST AMONG ALL APPLICATION SEGMENTS,ACCORDING TO STRATEGIES UNLIMITED, http://www.strategies-u.com/articles/2013/02/worldwide-led-component-market-grew-9–to–13-7-billion-with-lig.html

Solid State Technology, Worldwide LED component market grows 9% with lighting, http://www.electroiq.com/articles/sst/2013/02/worldwide-led-component-market-grows-9-percent-with-lighting-.html?cmpid=EnlLedFebruary132013