Profits to move from LED packages towards LED drivers
GlacialLight announces the availability of its 2015 LED industry outlook report, LED Lighting Industry and Value Chain Shift, an in-depth look at the current state of the $27.5bn LED lighting industry, and a forecast of upcoming changes based on market trends.
Authored by Shawn Hsieh, Chairman of GlacialTech, the report makes a number of observations and predictions including: a shift in profit margins from the core LED package to the thermal module and LED driver, price competition in the LED package segment, the growing popularity of CoB LEDs, and the opportunity for smaller companies to grab market share.
“The LED industry is currently around $27.5bn and growing,” said Shawn Hsieh. “Newer technologies such as the CoB LED are driving this growth so opportunity exists for emerging companies with strong business models and innovative designs. Price competition within the LED package segment will erode profit margins while LED driver and thermal module manufacturers will stand to gain.”
The report predicts that price competition within the LED industry will grow, especially in the LED package segment. Compared to the computer industry, where high barriers to entry limit processor manufacturing to a few key players, the LED package segment is more competitive with a much larger number of providers large and small. GlacialLight predicts that price-to-performance ratios of the most efficient LED lighting modules will drop to $0.13/W by the end of the year.
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