Global LED Market To Hit $42.7 Billion By 2020
- Apr 26, 2019-
The global LED market is a good example of very real growth that is bolstered by industry enthusiasm. Specifically, Allied Market Research, a global market research consulting firm, has estimated that the size of the global LED market will be $42.7 billion by 2020. If accurate, this estimate indicates that the global LED market that will more than double in a period of five years.
(Image Credit: Allied Market Research)
Allied Market Research reached its estimate by examining the current market demand for compact fluorescent and cold cathode fluorescent lamps (CFLs and CCFLs), as these two technologies are the key products that will be replaced by LEDs. Demand for displays that need these products continues to grow exponentially, and LEDs are well poised to assume control in that market. LEDs have better performance and endurance characteristics than CFLs and CCFLs. LED manufacturers, including SpecGrade LED, are implementing new designs and technologies to expand the appeal of LED lighting while increasing quality and specification. Manufacturers are also working with end users to better retrofit LEDs into legacy lighting products.
Allied Market Research also considered new potential applications for LED technology, including applications in the medical and forensic testing industries. As end users familiarize themselves with the capabilities of LED technology, even more LED applications are likely to come on line, thus further adding to the growth potential of the global LED market.
Global LED Market Growth
The general global push toward “green” technologies is also fueling the growth of the LED market. LED lighting systems use up to 50% less energy to generate an equivalent light intensity as CFLs and CCFLs. This reduced energy consumption directly translates into a reduction of more than 735 million tons of carbon dioxide emissions annually, as demand on oil- and gas-burning power plants will be reduced with the adoption of LED technology.
Consumers and other end users who are considering shifting to LED technology can benefit by making that shift sooner. Prices for LED technology have dropped, but an expanding global LED market can lead to an increased demand for LED products. That demand may reverse the current downward pricing trend if manufacturers are unable to maintain supplies to meet that demand. The upfront costs of LED lighting systems will be offset my reduced operating and maintenance costs.
Changing to LED technology will also prepare end users to adopt new LED developments more quickly without having to implement LED retrofits when the demand for those retrofits begins to soar. Early adopters of technologies can benefit from discounts that manufacturers and installers will be more willing to offer before the LED market grows to its estimated $42.7 billion size.