LED lighting to be a $10bn power supply market in 2016
The power supply market for LED lighting is forecast to reach $10bn in 2016, according to a report from IMS Research, writes Richard Wilson.
The report predicts that the rapid uptake of LED lighting will result in a potential market of four billion power supply units by 2016, worth $10bn.
According to report co-author and senior market analyst, Ryan Sanderson: “Demand for LED lighting solutions is increasing rapidly for all applications from low-power residential retrofit LED lamps and bulbs to high-power commercial and industrial LED luminaires for applications such as street lighting.”
The requirements to power new LED lighting products varies widely, depending on design factors including power rating, the number of LEDs or LED strings and the environment in which the solution will be placed.
“These design requirements, coupled with the lack of clear standards for LED lighting means that LED lamp and luminaire manufacturers need considerable power electronics expertise, either via employing specialists or from a merchant power supply manufacturer,” said Sanderson.
Report co-author and market analyst, Jonathon Eykyn pointed out: “Some of the largest manufacturers of LED lamps and luminaires already have the capability to design and manufacture power circuitry in-house, either via subsidiaries or through the acquisition of power supply manufacturers. Philips Advance is a prime example”.
Eykyn added, “Designing and manufacturing the power solution in-house, however, only really makes sense in high-volume, low-cost markets and where the design is simple; for example, LED retrofit lamps. In medium and high-power applications, design becomes more complex and it often makes more financial sense to outsource the power supply design to a merchant vendor.”
As a result, the report from IMS Research forecasts that more than 50% of the market in 2016 will be controlled merchant power supply manufacturers.