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LED market outlook

April 22, 2013

VTT Ventures Ltd and Lumichip Ltd have jointly invested in Finnish LED technology company LightTherm Ltd that uses its innovative materials and heat management solutions to introduce novel design and manufacturing capabilities for LEDs. The estimated global market for LED lamps is over US$20 billion, with more than 1 billion units due for manufacture in 2013. LED technology still faces some challenges, particularly where high light output is required from small compact light units. The major difficulty with LEDs is the heat sensitivity of used components and materials. Overheating can shorten the lifespan and efficiency of the LED, while light output falls below product optimal specification as temperatures rise. LightTherm Ltd innovative LED interconnection solution can yield better thermal characteristics and cooler semiconductor junction temperatures. This capacity for better thermal efficiency management will have a major impact on the lifetime of LEDs. Combined with new materials for lamp body production, substantial cost savings can be achieved through reduced materials, manufacturing simplicity and total production automation.

LED materials will see a boom over the next five years according to a report from French analysts Yole Developpement despite challenges to reduce costs. The LED packaging materials market will enjoy a 20% CAGR during the period 2012 – 2017, driven primarily by package substrate and phosphors, says the report, rising to nearly $900M by 2017. Despite strong price pressure, the associated market for LED phosphors will also enjoy double-digit growth, with a CAGR of 20% during the period 2012 – 2017.

Depending on the device type, packaging can represent 40% to 60% of LED total cost. As such, packaging represents the single-largest opportunity for cost reduction, which is required in order for the general lighting market, says the report. However cost reduction is not going to come from standardization as there is a wide range of packaging approaches.

Provided by A Longford – PandA Europe

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