use of light-emitting diodes for solid-state lighting, rather than as indicators, is poised to make inroads in applications in the automotive, architectural and general illumination markets, according to market-analysis firm Yole Développement (Lyon, France).
But for the growth to pan out, particularly in the general illumination market, there is still technical work to be accomplished. Although LEDs are prized for their energy efficiency, a great deal of color performance and design and cost optimization remains to be done, and semiconductor companies need to keep improving manufacturing processes.
Yole projects a market size for all types of LEDs of $10.3 billion by 2012. High- and ultrahigh-brightness LEDs, combined, will be responsible for about $4.45 billion of that total--almost 5.5 times the $783 million market size, based on packaged LEDs, estimated for 2007.
With such a large part of the growth driven by bright-LED varieties, the two key criteria for the new market segments are luminous efficacy in lumens per watt and cost efficiency in dollars per lumen.
Until now, LED manufacturers have focused on light efficiency and light output, said a spokesman for Philips Lumileds. "They are critical, but only two parts of the system," he said.
Upcoming issues to address include thermal management, drive electronics and consistency, and range of color temperature. Resolving them will require manufacturing advances in optics, packaging, testing and binning.
Until now, LED manufacturers have focused on light efficiency and light output, said a spokesman for Philips Lumileds. "They are critical, but only two parts of the system," he said.
Upcoming issues to address include thermal management, drive electronics and consistency, and range of color temperature. Resolving them will require manufacturing advances in optics, packaging, testing and binning.
