Packaged LED market poised for growth between 2012 and 2018, says report

Aug. 15, 2012
Lyon, France--A new report from Yole Développement and EPIC estimates that packaged LED revenue will reach a market size of $11.4B in 2012 and climb to $17.1B by 2018.

Lyon, France--A new report from Yole Développement and EPIC estimates that packaged LED revenue will reach a market size of $11.4B in 2012 and climb to $17.1B by 2018. Drivers of this growth will be display and general lighting applications until massive adoption of LEDs in lighting takes hold.

From 2014, the third growth cycle of the LED business will accelerate with the general lighting application representing more than 50% of the overall packaged LED business. In terms of volume, LED die surface will increase from 22.5B mm2 in 2012 to 80B mm2 in 2018. This will prompt substrate volume growth from 8M × 2" equivalent in 2011 to 39.5M × 2" equivalent in 2018, with a compound annual growth rate (CAGR) of 26%.

LED industry growth has come initially from small display application and has been driven forward by LCD display applications. LED TV was expected to be the LED industry driver for 2011; however, lower adoption of LEDs in the TV market and the entry of several new players, mostly from Asia, created a climate of overcapacity, price pressure, and strong competition. As a consequence, packaged LED volume was about 30% lower than expected and revenue shrank due to strong average-selling-price (ASP) pressure.

“In 2012, most companies have moved to the new 'El Dorado' of LED business: general lighting, which represents the next killer application for LEDs. But enabling massive adoption of the technology for such an application still requires a large decrease in the cost of LED-based products...” explains Pars Mukish, Market and Technology Analyst, LED at Yole Développement.

The full report presents all applications of LEDs and associated market metrics, LED cost reduction opportunities, entire LED value chain, a deep analysis of the general lighting application, and an analysis of geographical trends.

To download the full report, please visit


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