LED Market Trends, Past and Future
This past year we celebrated 10 great years of being in the LED lighting business. As the New Year often provokes, we’re taking the opportunity to reflect on industry trends that have impacted our business along the way, as well as looking forward to the future.
A look back at LEDs in the last 10 years
In 2014, a trio of scientists won the Nobel Prize in Physics for inventing LEDs in the 1990s. In 2015, the Goldman Sachs “Low Carbon Economy Report,” stated, “the rapid adoption of LEDs in lighting marks one of the fastest technology shifts in human history.” It’s not a coincidence that while LEDs were receiving recognition on a global and business stage, that LED Supply Co. made Inc. 500’s “America's fastest-growing private companies” listing us at 84 in 2015.
What has been driving the booming LED market?
Government incentives, rebates and investment in R&D of energy efficient lighting solutions
Government participation in public-private partnerships to boost local markets
Applications of LEDs in new markets, such as automotive, mobile devices, forensics and more
LED manufacturer marketing initiatives
Rising environmental concerns
And of course, they’re efficient and reliable with a long-life span
Two LED lighting reports cited different values of the industry and CAGR in the period 2020-2025, however both suggested a strong growth. In one, put out by Grand View Research, the market size was valued at 45.57 billion dollars in 2018, and is projected to grow with an annual CAGR of 11.8%. The second, from Mordor Intelligence valued the 2018 LED lighting market size as 58.91 billion dollars, with an expected growth to 127.97 billion dollars by 2024. The CAGR for the forecasted period (2020-2025) at 13.75%.
Innovating Towards the Future
In the highly competitive landscape of LEDs, future opportunities lie in smart illuminations, controls, and SmartCities. Mordor Intelligence’s industry report cited a Cree’s Smart technology called SmartCast that integrates fixtures into the cloud. LED Supply Co. has also jumped at the opportunity to develop smart technology with a new company called LSC Technologies. The main product that emerged from this partnership is the CitySafeTMproduct, a mass notification system that provides security, weather, safety and maintenance alerts. This technology won a Smart City Award in 2019 for being an innovative and influential product.