the market outlook for high brightness le ds in lighting applications
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The Market Outlook for High-Brightness LEDs in Lighting Applications
International Workshop on Status, Prospects, and Strategies for LEDs in General Lighting
May 3-4, 2007
Robert V. SteeleStrategies Unlimited
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Outline
IntroductionHB LED MarketsLightingOutlook
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HB LED Market AnalysisMarket is worldwide in scope
Main production and consumption are in U.S., Europe, Japan, Taiwan, S. Korea, China, SE Asia
Market analyzed in terms of packaged devices (lamps, SMDs, multichip, high-power packages)Materials include InGaAlP (red-orange-yellow) and InGaN (blue, blue-green, green, white)
Higher performance, “qualified” devices
Market segmented and sub-segmented by applications that have similar functionality
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HB LED Application SegmentsMobile AppliancesOther
Indicators, small displaysamusement, misc. other
Illumination
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HB LEDMarket Signs and Displays
Automotive
Signals
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Outline
IntroductionHB LED MarketsApplicationsLightingOutlook
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HB LED Market Trends
Market continued its “slow growth” phase in 2006 – similar patterns to 2005Overall market growth was 6% to $4.2 billionHeavily influenced by ongoing decline in mobile phone marketOther applications continued to have attractive growth rates Substantial ASP erosion across many product types
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Recent Market History
0
1,000
2,000
3,000
4,000
5,000
2001 2002 2003 2004 2005 2006
Other
Illumination
Signals
Automotive
Signs/Displays
Mobile Appliances
MarketSize
($ Million) 44%/yr
6.2%/yr
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Market Growth Without Mobile Phones
0
500
1,000
1,500
2,000
2,500
2001 2002 2003 2004 2005 2006
Market Size ($ Million)
Other
Illumination
Signals
Automotive
Signs/Displays
Other Mobile
22%/yr
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2006 Market by Application
Mobile Appliances
48%
Automotive15%
Signals2%
Illumination5%
Other16%
Signs/Displays
14%
Total: $4.2 Billion
(down from 57%
in 2004)
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2006 Market by ColorInGaAlP
ROY17%
InGaN Blue/Green
28%
RGB Multichip
7%
InGaN White
48%
Total: $4.2 Billion
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HB LED Units and ASPs
0
5
10
15
20
25
30
35
2004 2005 2006
Unit
Shipments
(Billion)
0.00
0.05
0.10
0.15
0.20
0.25
ASP
($)
Units
ASP
29%/yr
-18%/yr
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Outline
IntroductionHB LED MarketsLightingOutlook
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Solid-State Lighting MarketThe use of HB LEDs for lighting is currently the fastest growing applicationThe market is highly fragmented, encompassing many niche applications
The majority of applications are for colored (R,G,B) lightGeneral illumination applications are starting to emerge
Hundreds of companies worldwide are participating at the luminaire or fixture level
Strategies Unlimited has identified and described approximately 300 such companies, but there are moreParticipants range from start-ups to the world’s largest lighting companies
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HB LED Lighting Market
The 2006 market for HB LEDs used in lighting was $205 million
Architectural is the largest
Growing at around 37% per year – the highest of any HB LED applicationProjected to reach ~$1 billion in 2011Majority of applications use RGB today, but white will increase to more than 60% of the market by 2011
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Status of SSL Fixture IndustryMany small companies dedicated to SSL; high level of LED expertiseMany large and medium lighting companies, with some interest in SSL, offer a few products
Most lack in-house LED expertiseRely on outside consultants for design, prototyping
Volumes are small and costs are high, independent of high cost of LEDsProducts in the market are highly variable in terms of quality
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SSL Market DevelopmentMost product and market development is being carried out by small, specialized companies
With a few exceptions (e.g., Philips Lighting, Zumtobel)
Generally, large lighting fixture company interest is modest (but interest is growing)
In-house LED expertise is minimalEuropean companies moving faster than U.S.
Established lighting companies control the access to large-volume sales and distribution channels and customers
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SSL Market DriversVisual appeal
Saturated colors, nearly point source of light, design flexibility
Long lifetime, robustApplications with high maintenance costs
Compact form factorLack of radiated heat or UVLow-voltage operationEnergy efficiency
Colors, low wattage applications (e.g., battery and solar-powered), low-temperature operationImproving rapidly
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10 Significant Near-Medium-Term Applications
ArchitecturalChannel letter/contour lightingConsumer portable (e.g., flashlights)ResidentialMachine vision
Retail displayEntertainmentSafety/securityOutdoor areaOff-grid (generally solar-powered)
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Interesting Emerging General (White) Lighting Applications
ResidentialPermlightLED Lighting Fixtures (LLF)LemnisProgressRenaissanceBruck
Retail DisplayLumination (GELcore)StylmarkOptoLumMAG-LEDNuaLighti-LeDColor KineticsBartcoMatsushita Electric WorksPhilips
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Retail Display LightingWhite LEDs are being used to provide attributes that are advantageous for certain types of products:High-end retail (e.g., designer label branded stores)
“High-tech” look; interesting effects; design flexibilityCosmetics
Lack of radiated heat from sourceJewelry
Sparkling appearance from point light source; compact; low heat;long life
Refrigerated display casesMore efficient than linear fluorescents at low temperatures; rapid start-up; long lifetime
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Retail Display Lighting Examples
Source: NuaLight
Source: Hera GmbH
Source: MAG-LED
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LED Residential Lighting
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Refrigerated Display Case Success Story
Wal-Mart adoption of LED refrigerated display case lighting from GELcore was the SSL “story of the year”Installing in all new Sam’s Club and SuperStores from Dec. 2006, ~300 per year in U.S.
Part of Wal-Mart’s “green” strategy
Drivers are energy and maintenance savingsCan use occupancy sensors to turn off lighting during low traffic periods (impossible with fluorescent due to slow start-up)
Other supermarket chains are likely to follow Wal-Mart’s lead
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Linear Fluorescent vs. White LED Relative Efficiency
0%
20%
40%
60%
80%
100%
0 10 20 30 40 50 60 70 80 90
Ambient Temperature, Deg. F
Relative Efficiency
Fluorescent
LED
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Opportunities for SSLOffer a unique lighting solutionCreate an aesthetically pleasing lighting environmentDeliver value (on a cost-of-ownership basis)Provide lighting products adapted to unique physical environmentsSave energy; comply with regulatory requirements (e.g., Title 24 in California)
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Challenges for SSLHigh initial costOther alternatives for energy efficiencyConsistency of color/binning issuesNeed to provide a complete lighting solution with ease of installationAdapt to standard electrical interfaces and controlsRealistic claims of performanceDevelopment of standardsNeed widespread base of lighting fixture designers and engineers who understand LEDsNeed for high-efficiency light engine/fixture design
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Essential Design Principles for LED Light Engines
1. Don’t waste photons
2. Don’t waste electrons
3. Be cool
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ExamplesEfficient DesignStart with 70 lm/W 1-W white LEDs (at 25 °C junction temperature)Assume: 90% electrical efficiency; 90% optical efficiency; operate at 65 °Cjunction temperature
Light engine efficacy = 70 x 0.9 x 0.9 x 0.85 = 48 lm/W
Inefficient DesignStart with 70 lm/W 1-W white LEDs (at 25 °C junction temperature)Assume: 80% electrical efficiency; 80% optical efficiency; operate at 100 °C junction temperature
Light engine efficacy = 70 x 0.8 x 0.8 x 0.75 = 34 lm/W
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Outline
IntroductionHB LED MarketsLightingOutlook
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LED Lighting Market OutlookNiche lighting applications will continue to growGeneral illumination (e.g., white light applications) will become increasingly importantPresumes continuing improvement in white LED price/performance
And luminaire performance!
Presumes substantial marketing efforts to penetrate the conventional lighting market
Penetration will proceed gradually – application by application
Overall forecast 37% CAGR to ~$1 billion in 2011
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LED Lighting Market Forecast
0
200
400
600
800
1000
1200
2006 2007 2008 2009 2010 2011
Market Size ($ Million)
White
RGB
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LED Lighting Market Evolution
0.01
0.1
1
10
100
2000 2005 2010 2015 2020
Market Size($ Billion)
Total "Lamp"MarketLED Lighting
Niche Applications
BroaderAdoption General
Illumination
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Thank you!