Global LED chip market and forecast 2014 Research and Markets has announced the addition of the “Global LED Chip Market & Forecasts Report, 2016″ report to their offering. One of the major drivers in this market is the growing significance of LED chips. The LED-based device manufacturers are attaching increasing significance to LED chips. This is because the majority of the product differentiation in LED devices is dependent on the LED chips used as a base for the LED lighting devices. Thus, the importance of LED chips has been increasing in the LED Lighting industry. Luminous efficacy refers to the amount of electrical power required to produce a certain intensity of light in lumens per watt. The vendors in the market are attaching more significance to improving luminous efficacy due to the presence of various opportunities to improve luminous efficacy along the value chain. Furthermore, at epitaxy level, one of the key drivers fueling the market is the higher level of sophistication in the MOCVD. Some of the options evaluated by the vendors include more efficient production handling and better choice of layer material, especially the substrate material on which the light-emitting layers are deposited. At a chip level, multiple activities to enhance luminous efficacy are currently being tested. All these activities in the industry will tend to enhance the growth prospects of the market. Further, the report states that one of the key challenges in the market is the cyclical nature of the industry. The fluctuation in demand from the LED lighting device manufacturers is one of the major factors curtailing the growth in the market as it lowers the profitability of the market. The increasing fluctuations in demand could constrain the market growth during the forecast period.