LED Module Market: Everyone Wants a Piece of Cake
December 14, 2015 | Yole DéveloppementEstimated reading time: 3 minutes
Growth of the LED industry initially came from small display applications and was driven forward by larger LCDs. Since 2012, most companies have been participating in the ultimate application for the LED business, general lighting. Now, for solid-state lighting to grow, the industry expects strong price decreases though development of new LED platforms.
Furthermore, complete standardization of these sub-systems is still difficult as integration of LED modules must follow specific rules in areas such as design and electrical insulation. In this context, the Zhaga consortium has been created to develop guidelines for interchangeability of LED light sources made by different manufacturers. Standardization will further reduce development and maintenance but will also limit the possibility of differentiation between suppliers.
Most LED lighting module suppliers are packaged LED manufacturers that have used vertical integration to capture more value within the supply chain. These players have a strong competitive advantage in terms of mastering the LED binning strategy. However some other types of players are also involved in this business. They mainly want to diversify their activities and/or define new strategies to support the development of their primary business. They are: LED luminaire, LED driver, optic, connector, heatsink … manufacturers.
Under this new report, both organizations, PISEO and Yole highlight the emergence of flexible LED strips. Flexible LED strips represent a new form of LED lighting module that can also be directly used as LED lighting systems. They were initially developed by Asian manufacturers for the Asian market. But today, they are spreading to other regions of the world. “Such modules allow new applications due to their design flexibility and are mostly driven by indirect lighting applications and high-end applications at the moment”, asserts Pierrick Boulay, Technology & Market Analyst, LED, OLED and Lighting Systems at Yole. “In the future, we expect, at Yole, these modules to continue penetrating indoor lighting applications such as residential lighting, and commercial lighting."
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