Business of LED products–LED TV, LED Lighting, and others
Benefits of LED over other lighting systems
1. Long Life
Industry estimates say that all LEDs can enjoy a 50,000+ hour lifespan, when you will have to buy more than 50 regular incandescent bulbs or 5 compact florescent bulbs. LEDs do not have ignition hassles while it can work under a harsh condition of -40oC to +45oC. Since LEDs do not have filaments or tubes that might break, they are more durable. LEDs are encased in unbreakable high strength optical grade resin. Since there is no glass or filament that will break, LED light sources come as perfect solutions for lighting environments that are rugged or installations that are difficult to access.
2. Energy Efficiency
LEDs are burn on far less energy when compared to standard light bulbs, thereby bringing down energy costs. Also, LEDs need far less energy to manufacture at the industries when compared to other light sources, thereby once again bringing down the environmental impact of artificial lighting. The most powerful of LED replacement bulb consumes only 10 watts of electricity while performing equal to that of a 100 watt incandescent bulb. Moreover, conventional incandescent bulbs waste 98% of their energy by generating wasted heat, whereas LEDs generate very little heat. Also, the low power requirements of LED lighting gadgets make them ideal options for solar or wind powered installations.
3. Environmentally Friendly by Design
LEDs are considered the most environmentally friendly light source next to pure sunlight. Since LEDs do not use any hazardous substances in manufacturing, they are always RoHS compliant (a strict new standard meant to reduce hazardous substances).
4. Pure Light
LEDs come in white and warm light color temperatures. Irrespective of the temperature that we choose, we are assured of getting pure and clear light that renders reading or viewing objects easier to our the eyes.
5. Better Safety and Security
LEDs produce low levels of heat and burn on low voltages. Therefore, they are deemed perfect and safer sources of light. With LEDs, we do not have any glass to break. There are no concerns regarding hot filament, gas or candle flames and noxious fumes.
Industry Overview of LED
For quite some time since 2004, the high-brightness LED market witnessed a slow-growth phase as a result of the dominant position enjoyed by the mobile appliance market. However, the latter has come to a saturation point now. LED market experienced an overall uptick in growth from the year 2007. Still it continues to perform well and a range of its emerging applications promised the resumption of higher growth in the immediate future.
The global LED industry is seen to be clustered in Japan, EU and Taiwan. While Japan ranks first in the segment, Taiwan follows it. Philips and OSRAM are the backbones of LED sector in the EU. Top players in the LED industry in Japan include Nichia, Toshiba, Showa Denko KK, Sharp, CITIZEN and Toyoda Gosei. CREE is notable in the U.S.A.
LED industry is found highly dispersed in the mainland of China while we find thousands of LED manufacturers are found engaged in in LAMP packaging. Some of the dominant companies in this segment include Xiamen Hualian, COTCO Luminant Device (Huizhou), Jiangxi Lianchuang Optoelectronic, Ledman Optoelectronic, Golden Valley Optoelectronics, Foshan NationStar, Wenrun Optoelectronic, Ningbo Hepu Optoelectronic, Tianjin Tianxing Electronic, Refond Optoelectronics, and Leadfull Optoelectronic, besides a number of others. There are also the key manufacturers of LED including San’an Photoelectric, Dalian Lumei, Silan Azure, Epiligh Technology and Rainbow.
What is the market potential of LED products?
Over its development as a visible lighting source over the past three years, there is never a sign of slowing down in the LED segment. Though the Blue LED is available in production quantities only recently, they are expected to bring about an entire generation of innovative applications. Blue LEDs are known for their high photon energies (>2.5eV). They are also reported to have low eye sensitivity. The technology required to make these LEDs is very different and less advanced when compared to other LED materials. The blue LEDs available in the market today come with GaN (gallium nitride) and SiC (silicon carbide) construction with the brightness levels exceeding 1000mcd at 20mA. Blue is one of the primary colors apart from red and green. Therefore, blue LEDs will find their commercially viable applications in full color solid state LED signs and TVs in addition to medical diagnostic equipments and photolithography.
There are also enormous possibilities to manufacture other colors with the help of the same basic GaN technology and development processes. For instance, a high brightness green LED of about 500nm has been evolved, which is at present being evaluated for replacing the green bulb used in traffic signals. Other colors of LEDs that are possible include purple and white. Since blue LEDs have been introduced only recently, now the industry has the possibility to manufacture white by selectively combining red, green and blue light sources. This process might however need sophisticated software and hardware design to be commercially viable. One challenge in this segment is that the overall light output of each RGB might degrade at a different rate resulting in color unbalance over a period of time. There is yet another approach being implemented to achieve white light namely using a phosphor layer (Yttrium Aluminum Garnet) on top of a blue LED.
Today’s LED market can be identified under three segments namely general lighting, TFT-LCD backlight, and signal or data display, while TFT-LCD backlight is the most potential and rapidly evolving sector. The year 2009 saw a significant enhancement in LED luminescence efficiency and cost reduction, LED has started growing up strongly in the large-size sector. In the LED laptop field, the innovative designing of Dot typed light guide plate has effectively replaced V-cut design, thereby significantly bringing down the cost.
LEDs have already developed from infancy to adolescence and are witnessing the fastest market growth. By employing InGaAlP material along with MOCVD during the process of development and by combining it with efficient delivery of generated light and effective management of supplied power, the industry has today achieved some of the brightest, most efficient and highly reliable LEDs. In combination with other novel LED structures, this technology will ensure a wider application of LEDs across a variety of platforms. In addition, recent developments in the LED blue spectrum and white light will also ensure the continued growth in applications of LED light sources.
International scenario of LED Industry
In the year 2005, the LED industry was valued only at $205 million. Industry experts estimate that by 2011, this could be valued as high as $1 billion demonstrating 388% growth in a matter of just six years.
Most significantly, Walt Disney World has now resorted to LED lighting thereby wiring Cinderella’s Castle with more than 20,000 LEDs, which the firm says has helped in saving thousands of dollars.
The Times Square ball is today seen completely lit only with LED lighting, while it appears twice as bright using only half the energy.
The city of Boulder, Colorado is now seen switching over to LEDs for lighting its Downtown Pearl Street Mall.
It was indeed a welcome initiative to see China’s first high-definition system being installed in the Beijing Olympic Basketball Gymnasium, for displaying scores and other information at the venue during the Olympic Games. It is said that this system can easily meet the complete requirements of the National Basketball Association (NBA). LED system can also be used for theatrical performances, background imagery and real-time broadcasts.
Challenges faced by new players while entering LED industry
Today, more and more firms are rapidly changing over from different industries including traditional lighting fixtures and consumer electronics to SSL (Solid State Lighting) industry. Due to the sudden outburst of competition in the arena, the new and the present SSL players are undergoing tremendous pressure due to factors including price reduction, shorter life span of products, more need for new product innovation and Market Strengthening.



