SAN FRANCISCO—Power semiconductor and power supply vendors are poised to cash in on strong growth anticipated for LED lighting in coming years, according to the latest forecast from market research firm IHS Inc.
The market for power semiconductors for LED lighting is projected to grow to 24.3 million units in 2020, up from 7.3 million units in 2015, as LED lights command a larger proportion of the overall lighting market, according to IHS (Englewood, Colo.).
LED lightning shipments accounted for just 8% of the total lighting market in 2015. But that percentage is expected to increase to 27% in 2020, according to the market research firm’s power supplies intelligence service.
Shipments of power drivers and power supplies for LED lighting are expected to grow to 4.5 billion units in 2020, up from 1.4 billion units in 2015, IHS said.
IHS also forecasts rapid growth in the microcontroller market. The firm projects that the market for microcontrollers will grow at a compound annual growth rate (CAGR) of nearly 44% from 2015 to 2020. Microntrollers are used in LED lighting applications for advanced functions, including color changing and for peripheral communications via wireless technologies.
Power semiconductor design for LED lighting depends on application requirements. For example, low-power LED luminaires—lighting fixtures built with all components required for operation—typically involve integrated power semiconductors. High-power LED lighting usually requires more sophisticated power suppliers with a higher number of discrete power ICs, IHS noted.
On the flip side, the average selling price for LED lighting is expected to decline at an 8% CAGR between 2015 and 2020, as many global suppliers—particularly those based in China—sacrifice margins in an effort to gain market share, IHS said. But this decline is not expected to have a strong effect on revenue for power components, IHS said.
—Dylan McGrath covers the semiconductor industry for EE Times.