Top 10 LED manufacturers in 2011, and shifting regional dominance

February 8, 2012 — The global high-brightness light-emitting diode (HB-LED) market grew from $11.3 billion in 2010 to $12.5 billion in 2011, surging 9.8%, according to Strategies Unlimited. 10 companies accounted for more than 68% of the global LED supply.

Demand for LED components in the lighting market grew 44% from 2010 to 2011, from $1.2 billion to $1.8 billion.

Table. Top 10 LED suppliers for 2011, by revenue of packaged LED components.*
1 Nichia
2 Samsung LED
3 Osram Opto Semiconductors
4 LG Innotek
5 Seoul Semiconductor
6** Cree
6** Philips Lumileds
7 Sharp
8 TG
9 Everlight
*Strategies Unlimited arrived at these figures after analyzing market demand as well as the supply-side activity of more than 54 LED component suppliers.
**Companies have the same ranking when the difference in revenue is within the margin of error. Revenue includes packaged LED sales only.

Taiwanese and Chinese suppliers gained market share at the expense of the other regions in 2011. China leapt from 2% to 6% market share on the strength of its domestic market, as well as improvements in LED quality. Korean companies lost share, despite aggressively increasing capacity during the ramp-up in 2010. Japan trended down or flat, although Nichia and TG are tapping into tablet growth.

Philips Lumileds, Cree, and Osram Optoelectronics’ expansion into 6" wafers slowed, with excess capacity available on their 4" wafer lines. Osram Optoelectronics gained a major design win, which propelled its visible LED component business to more than $1 billion.

Figure. 2011 worldwide distribution of LED supply. SOURCE: Strategies Unlimited.

The revenues for the LED packaging industry are expected to be flat in the next five years. With excess capacity in the industry there is a threat of unsustainable prices.  Consolidation, vertical, and horizontal can help improve margins. To further improve profit margin, product strategies such as LED packages tested for high temperature, narrow binning, high CRI, directional /multidirectional LEDs, and embedded controls are being tried by the market.

Mobile. This segment stayed flat, at $3.4 billion. The overall decrease in the mobile phones market was offset by a sharp rise in tablet display and flash applications. A major development in this segment is the move to organic LED (OLED) displays. Approximately 50% of smartphone displays are expected to be OLEDs by 2016.

TV/monitor backlight. The LED revenue for TV and monitor backlights was $3 billion in 2011, but it is projected to drop substantially by 2016. The key disruptive factor in this segment is the introduction of low-cost direct backlit technology, targeted at sub-42-inch LCD TVs. This new technology can result in significant savings in the BOM, reducing the gap between LED and CCFL backlit TVs. These TVs are known as “Chubby TVs” since they are thicker than the slim edge-lit design the industry has been touting for the past few years.

Lighting. The same supply conditions that reduced the price of LEDs increased the demand for packaged LED in lighting applications from $1.2 billion in 2010 to $1.8 billion in 2011. System efficacy, rather than LED efficacy, was the gating factor in 2011. The LED luminaire and replacment lmap market was $9.3 billion in 2011, an increase of 45% over 2010. The market for LEDs in lighting is expected to demonstate substantial unit growth over the next five years, but revenue growth will be much lower due to pricing pressure.

Automotive. Revenue reached $1 billion in 2011 We expect a 5-year CAGR of 34% for LED headlamps. In addition to the styling issues, this is part of the trend to convert all front lighting to LEDs, as it will provide more front-end room for the car designer and reduce the overall system cost. Revenue for interior automotive lighting will show a modest decline over the next five years as instrument panel adoption reaches saturation and the market declines with prices.

Strategies in Light Conference & Exhibition 2012 is taking place this week in Santa Clara, CA. For more information, contact Strategies Unlimited at +1 650 941-3438 (voice) or e-mail at info@strategies u.com, or visit www.strategies-u.com.

Check out more news from Strategies in Light:

Visit the new LEDs Manufacturing Channel on ElectroIQ.com!

POST A COMMENT

Easily post a comment below using your Linkedin, Twitter, Google or Facebook account. Comments won't automatically be posted to your social media accounts unless you select to share.

4 thoughts on “Top 10 LED manufacturers in 2011, and shifting regional dominance

  1. Manny

    Common …. This is mainly LED for TV, not lighting.
    You have to separate the application, not just counting from the revenue.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

NEW PRODUCTS

VaporSorb filter line protects advanced yield production from Entegris
10/21/2014Entegris, Inc. today announced a new product for its VaporSorb line of airborne molecular contamination (AMC) filters. ...
Next-generation nanoimprint lithography technology
10/21/2014EV Group (EVG) today introduced its SmartNIL large-area nanoimprint lithography (NIL) process....
SEMI-GAS broadens gas mixing capabilities for highly corrosive gases
08/28/2014SEMI-GAS Systems, a provider of ultra-high purity gas delivery equipment, recently broadened the capabilities of its custom Xturion ...