The LED market is expected to decline by 3.7% this year, but the fundamental drivers for LED adoption have not weakened, says BOB STEELE of STRATEGIES UNLIMITED. The worldwide economic recessionhas had a negative impact on manyindustries, including high-brightnessLEDs. For2008 was positive (+11%) despite a shakyfourth quarter, a decline of 3.7% is expected for this year, resulting in a market size of$4.9 billion. However, this decline will not affect all LED market segments equally.For example, although some of The moremature markets such as automotive lighting and mobile phones are experiencingsubstantial downturns, other emergingsegments, such as backlights for LCD displaysin notebook computers and TVs, areshowing strong growth. Moreover, the LEDlighting market is also continuing to grow,although at a somewhat slower pace than inrecent Years.
Since Strategies Unlimited began tracking the LED market in 1995 there has neverbeen a down year, although the market in2001 was flat. However, that was during aworldwide recession in which all other technology-based markets experienced dramaticdownturns (for example, the siliconsemiconductor market contracted by 32 %).In the current economic environment, itis not surprising that a number of end-usesectors that consume LEDs are experiencingdownturns. Worldwide automobile productionis expected to shrink by 20% in 2009,while mobile phone handset shipments areexpected to decline by 10% in 2009 Afteryears of steady growth. These two segmentsaccounted for 15% and 42%, respectively, ofLED consumption in 2008.
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This article was published in the Sept/Oct 2009 issue of LEDs Magazine.To read the full version of this article, please visit our magazine page, where you can download FREE electronic PDF versions of all issues of LEDs Magazine.
You can also request a print copy of LEDs Magazine (available by paid subscription) and sign up for our free weekly email newsletter . About the Author BOB STEELE is a market analyst with Strategies Unlimited.
Since Strategies Unlimited began tracking the LED market in 1995 there has neverbeen a down year, although the market in2001 was flat. However, that was during aworldwide recession in which all other technology-based markets experienced dramaticdownturns (for example, the siliconsemiconductor market contracted by 32 %).In the current economic environment, itis not surprising that a number of end-usesectors that consume LEDs are experiencingdownturns. Worldwide automobile productionis expected to shrink by 20% in 2009,while mobile phone handset shipments areexpected to decline by 10% in 2009 Afteryears of steady growth. These two segmentsaccounted for 15% and 42%, respectively, ofLED consumption in 2008.
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This article was published in the Sept/Oct 2009 issue of LEDs Magazine.To read the full version of this article, please visit our magazine page, where you can download FREE electronic PDF versions of all issues of LEDs Magazine.
You can also request a print copy of LEDs Magazine (available by paid subscription) and sign up for our free weekly email newsletter . About the Author BOB STEELE is a market analyst with Strategies Unlimited.
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