LED Fixtures Light Up the Chemical Materials Market Bringing New Manufacturing Opportunities
Jul 22, 2014 UncategorizedComments Off on LED Fixtures Light Up the Chemical Materials Market Bringing New Manufacturing Opportunities
MOUNTAIN VIEW, Calif., July 22, 2014 /PRNewswire/ — Light emitting diodes (LEDs) are rapidly taking the place of older, less durable and energy-efficient lighting technologies around the world. As chemicals and materials are needed at all stages of the LED fixture’s manufacturing process, chemical companies will play a critical role in the future success of the LED industry. The breadth of material requirements means that few market participants have visibility across the entire market, creating the need for a holistic vision of market potential.
New analysis from Frost & Sullivan, Analysis of the Global LED Materials Market, finds that revenue growth in chemicals demand is expected to be ahead of growth in the LED industry itself. The LED materials market, which earned revenue of $5.01 billion in 2013, will reach revenues of $11.71 billion in 2018. The study includes applications for chemicals through the four stages of the LED manufacturing value chain: chip fabrication, packaging, module construction, and fixture assembly.
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Historically, demand for LEDs in electronics applications such as display backlighting has driven growth in chemicals demand for LED applications. However, this market is now relatively mature, and demand from the general lighting sector will dominate future growth. Of the four value chain tiers involved in manufacturing LEDs, the greatest need for chemicals will emerge from the final stage, assembling the fixture.
“While prices of LEDs are falling at all stages of the value chain, price pressure is particularly strong in the packaging stage,” noted