MANHASSET, NY -- LED lighting will capture the market lead by 2014, as demand for LEDs in LCD TV backlights falls, according to market research firm DisplaySearch.
Through 2013 the total LED backlight market will account for nearly 50 percent.
The drop in 2014 is expected due to a decrease in the number of LED packages per set—a result of efficacy enhancements and cost reductions.
"The market for LED backlights continues to grow as manufacturers leverage the technology for large display applications like notebooks, monitors, and TVs," noted Leo Liu, Senior Analyst at DisplaySearch, in a new report. "In addition, there are a growing number of emerging applications for LEDs, such as lighting, signal, and automotive applications."
Currently, LED backlights are used in all small/medium LCDs, and LED penetration in mobile PCs is nearly 100 percent. Penetration of LEDs in LCD monitors and LCD TVs continues to grow, while the number of LED packages per set is decreasing.
After more than doubling to 12.9 percent in 2010, the average number of chips per set is increasing more slowly, and is expected to peak at 15.1 percent in 2012. This is driven by the increasing efficacy of LEDs, even as the cost per chip decreases. This virtuous cycle drives LED penetration higher in LCD backlights, as well as illumination.
The LED lighting penetration rate in 2010 was 1.4 percent, and is forecast to reach 9.6 percent in 2014. In terms of LED lighting, spotlights and LED street lights are forecast to have higher penetration in lighting due to government incentive programs like the 12th Five Year Policy in China, as well as growth in commercial applications.
In addition, LED bulbs and fluorescent tubes are growing in Japan due to government incentive programs (Eco-Point) and energy consciousness.
According to DisplaySearch, Taiwan will pass Korea as the largest source of supply in 2011.
The Quarterly LED Supply/Demand Market Forecast Report analyzes the entire LED industry supply and demand, including backlight and lighting applications, on a quarterly basis.